“Can you design a system ever that allows you to be indifferent to the failure of any institution, in any state of the world?” he asked. “You can design a system, and I think we have, that allows you to be indifferent in most states of the world: the five-year flood, the fifteen-year flood, the thirty-year flood, maybe even the fifty-year flood. But there are constellations of storms, of panics, of fires that are so bad that it’s very hard to imagine that you could be indifferent to the failure of the financial system.”
