John Cochrane's Talk at Hoover:

John Cochrane's Talk at Hoover: His Version, David Henderson | EconLog | Library of Economics and Liberty:

For nearly 100 years we have tried to stop runs with government guarantees--deposit insurance, generous lender of last resort, and bailouts. That patch leads to huge moral hazard. Giving a banker a bailout guarantee is like giving a teenager keys to the car and a case of whisky. So, we appoint regulators who are supposed to stop the banks from taking risks, in a hopeless arms race against smart MBAs, lawyers and lobbyists who try to get around the regulation, and though we allow-nay, we encourage and subsidize--expansion of run-prone assets.