Banks were supposed to be stable and boring. The quest for 'financial innovation' in the heady 80s accompanied by rocketing bonuses and compensation has led to

Banks were supposed to be stable and boring. The quest for 'financial innovation' in the heady 80s accompanied by rocketing bonuses and compensation has led to highly unstable economies with risk and reward mixed up with government intervention, too big to fail, regulatory capture and lobbying and now basically stand isolated. During the asian financial crisis the IMF and WB were gung ho about free markets, austerity and enforcing failure without exception but as soon as it hit western economies the whole field of economics changed with words like 'too big to fail' and 'systemic risk' entering the economic vocabulary. How does one explain oil being at $40 and $140 with supply and demand and free markets. There is a lot more going on that is often hidden behind jargon that obfuscates than informs.