[bandrami]

This is Jeremy Irons' argument in "Margin Call" too. But most people were unhappy with the secular result.

[nradov]

Tuld wasn't wrong. There will always be financial bubbles and misallocation of capital. It can't be prevented, and even trying to prevent it would involve intrusive government overreach that would make most people even more unhappy. Investors who want safety are free to buy Treasuries.