No it is not possible. The crisis can not be prevented. When we look at present situation not much has been changed and the causes of the previous collapse are still existant in the market.
- Too Big to Fail -- The companies which were affected and needs rresue have become bigger, the systematic risk of collapse of the system has not removed or reduced, over the years it has increased.
- Off Balance Sheet Transaction - Derivatives and swaps are there and no body really knows how much each of them owe. How much risk or swaps or derivates they have played. Derivatives are sttill off balancesheet and not goverened by the Financial Authorities.
- Toxic assets are still there on the balance sheet sitting and looking pretty beutiful. No one knows how much toxic each of them has and what is its worth.
- Credit Rating Agencies are same, methods are same and methodology is the same. They are still beyond control and again started playing the dirty game.
- Auditors are same - they have not changed their behaviour and practices. They are not controlled and supervised.
- Housing is going down, mortges are under water and bond for them are in market. Game is still on.
Unless and untill the reasons behind the crisis are corrected, another crisis can not be avoided.
The only difference is that, Mr. Ben Bernanke has new printing press and this one is priting Dollars and Printting as much he want. No one in world is sure what is worth of this Dollar.
