Sorry, for writing so much about the money thing in the U.S.. A topic of which I know next to nothing about but which irritates me a lot. Timothy F. Geithner, President and Chief Executive Officer of the Federal Reserve of New York a man who in this speech just last year in 2006 said,
"We judge the appropriate balance not against the standard of whether it reduces to zero the probability of a major financial crisis, the failure of a large individual financial institution or a major reduction in asset prices. That is not an appropriate objective of policy. Some vulnerability to crisis is a necessary and unavoidable feature of a dynamic and efficient financial system where asset prices need to be able to adjust to changes in fundamentals. "
and
"On balance, we believe these changes in the financial environment are likely to come with substantial benefits in terms of overall market efficiency"

In other words he justifies the creation and use of highly risky and unstable financial derivatives using only market efficiency as his criteria.

He is aware that :

"The same factors that may have reduced the probability of future systemic events, however, may amplify the damage caused by and complicate the management of very severe financial shocks. The changes that have reduced the vulnerability of the system to smaller shocks may have increased the severity of the large ones"

and

"As the aggregate size and importance of those funds increases, distress among those institutions can have greater effects on overall market dynamics, potentially increasing risks to the regulated core. Over time, this will force us to consider how to adapt the design and scope of the supervisory framework to achieve the protection against systemic risk that is so important to economic growth and stability.

For the present, however, our hierarchy of priorities should focus on improving supervisory incentives to make counterparty discipline more effective and to strengthen the resilience of the core institutions to more adverse economic and financial conditions"

What I read this to mean is that although very dangerous system shocks are likely we don't need to do much about this right now because the God Efficiency will be angry.