Obama's expected nomination of Summers was a perfect example of that critical flaw. Repeated appointments of inadequate individuals with questionable résumés -- whether out of loyalty or cronyism -- leaves the government vulnerable to recurrent failure.
One thing is certain. Once Bernanke (and his printing press) retreat into the shadows, the politicians will definitely have to come up with the goods and take more decisive action than they have hitherto done.
When I was in graduate school at the University of Michigan, I got to work with the "Michigan Model," a statistical model of the U.S. economy that had gained national recognition for its accuracy and simulation capabilities.
While it is tempting to think that things could have turned out differently for some of these firms if they had implemented and executed a Dodd-Frank living will, the reality is that probably not much would have changed.