I will assume in the following that innovations such as securitisation and structured credit products will remain with us also after the crisis, although this would necessitate that the paramount incentive problems which are at the root of the current crisis be properly addressed.
To conclude, I want to emphasise that our economy has to adjust to the external shocks that it is facing. Adjustment of some sort is unavoidable, but policymakers have some choice over the nature of the adjustment to the shock.