I suspect that legislation will never be able to run ahead of the human capacity to rapidly and efficiently paint oneself into a corner.

Rather than trying to prevent the resulting busts at all costs, it seems that it would be more effective to work towards building support systems that are antifragile in the face of economic downturns.

Or have I totally missed the point here?

So the best plan seems to be just to break the banks up to the point where they can be allowed to fail; be sure to allow them to fail when the time comes; and let natural selection do its thing.