You can't regulate away bad incentives which come from the privileges that other regulations grant. We're only in this mess because banks have excessive privil

You can't regulate away bad incentives which come from the privileges that other regulations grant. We're only in this mess because banks have excessive privileges. These privileges lead to misaligned incentives. No amount of regulation can realign the incentives back. Only revoking their privileges. Their privileges include being the only entities able to deal with the Fed and hold deposits . Let people bank directly at the Fed. Or with crypto. But banks don't deserve a special privilege of being the only way people can hold money. Furthermore, loans should not be transferable. Now banks will actually have to price loans correctly. And putting your money in a bank would be a choice they will have to tempt you with, by actually giving real interest rates. And you won't have misaligned incentives, because there is no captive audience. Giving your money to the bank would be a risk you're doing willingly. A risk they will pay you for taking instead of robbing from you by their regulatory privileges.