The trick, usually, is to avoid trying to squash it and instead look for ways to better incorporate it into the system.

I agree with that, but it’s a difficult thing to do with these credit default swaps, since they’re not traded openly and their value is very difficult to determine (these are the things really screwing up the economy right now, too). When major bond insurers are claiming they were duped by the big financial companies about the value of these credit swaps, you know we have a real problem here. How do you “incorporate it into the system” without some kind of regulation (open trading of the swaps, for example)?