Another thought I heard recently is a proposal to have two types of banks or investment institutions, one investing safely and the other speculatively. I don't know who has suggested this and if my reporting is correct, but it made me think about the viability of such proposal. Is it thinkable that we would have the first type as the dominant financial institution and the second type as the play game for speculators? Obviously, those engaged in the speculative business should not have their losses covered by the community. But where do you draw the line between safe and speculative investments? Is gold a safe investment? Isn’t its price as volatile as that of newly created financial instruments?
Don't get me wrong, in my view the "viability" argument should not be used to reject fruitful ideas. It should be used for refining and sharpening proposals. If there is anything we need now, it is creative proposals. Unfortunately, most policymakers tend to be very little creative and not willing to discuss the thinkable.
The "viability argument" is one obstacle that blocks solutions, vested interests and power is another.