Investigate, Confiscate, Imprison

Like Jerome says on eurotrib, the long term solution for this crisis involves taking back the money showered on bankers for feeding a bubble.

Here's non-crazy guess on how to proceed with this: due to an actively pursued lack of oversight, there has probably been quite a bit of white collar crime in the banking sector over the past decade. Madoff is just the tip of an iceberg and we'll have similar stuff in Europe. Perhaps the majority of the crazy stuff going on was legal, and we'll have to change the rules to avert systemic risk. And increase taxes on wealth and high incomes. But the return on investment for money spent on investigators (and spies to: Switzerland, Luxembourg, Liechtenstein, Isle of Man, etc.) is looking good.

Just a throwaway idea for governments facing tax shortfalls over the coming years.