How To Prevent It From Happening Again...

Eight fresh ideas from a Wall Street veteran, Al Wojnilower, published last month in a CSFI (London-based Centre for the Study of Financial Innovation) book entitled, "Grumpy Old Bankers: Wisdom from Crises Past."

1. Limit rewards for short-term gains;

2. Financial firms should be partnerships (the same prescription, by the way, as Michael Lewis);

3. FDIC-insured banks should be public utilities;

4. Prohibit short-selling; and

5. Restrict Freddie Mac/Fannie Mae to traditional activities.

If such advice is taken, the result may be as follows:

6. US will be the global leader in confidence-boosting regulations, and not participate in a race-to-the-bottom;

7. Make it more difficult to game commodities markets;

8. Real estate bubbles less likely to occur.

(Wojnilower refused to 'bullet-point' his brief article, saying "No point in summarizing the main points; read it all. It is well worth the effort.)

The last point is true, but the summary is here anyways.