"As the financial sector becomes larger, can all of it really be bailed out, with inevitably limited resources? Can it all be monitored so carefully, whether through government or private market incentives? Is there a large enough supply of truly safe assets, such as short-term Treasuries, to cover the risks? The answer to all of these questions, sooner or later, is no.

"Which is why, if you ask me when you should prepare for the next financial crisis, my answer is always … now."