From the article:
“In studying how to respond to the recent crisis and create a more stable system, central bankers, international officials and others have been focusing on a concept known as “systemic risk.” That’s the type of falling-domino problem that allowed mortgage defaults in the United States to lock up the global financial system because of the complex connections among banks, investment companies, insurers and other firms around the world.”
“Studying?” Nice! It continues:
“Still, some central bankers and regulators are devising ways to try to control systemic risk, and one of the things they are focusing on is its connection to fast run-ups in the prices of real estate or other investments, or a quick expansion of credit and lending.”
Ridiculous. Not going to happen. This is happy talk for those too stupid to know upside or down. Why will this never happen? Regulators can’t stop people from seeking easy riches.