I think part of the problem comes from the illegibility* of trust. In the specific example of mortage-backed securities, as much as it disrupted the (debt? non

I think part of the problem comes from the illegibility* of trust. In the specific example of mortage-backed securities, as much as it disrupted the (debt? non-finance guy here) industry, it also enabled opportunistic behaviour in people at the micro level.(Think that stripper with 5 houses mortgaged from "The Big Short" movie) and at the macro level(think rating agencies vs the big bankers). At the end of the day, any disruption of the finance industry that cannot check(not necessarily stop) this kind of opportunistic behaviour will always be liable to bubbles and big crashes. The checks might simply be limiting the amount of loss in crash. Not sure how to develop something like that though.. * -- http://www.ribbonfarm.com/2010/07/26/a-big-little-idea-called-legibility/ http://www.ribbonfarm.com/2010/07/26/a-big-little-idea-calle...