This would enable the authority to set a ceiling on the amounts it is willing to insure,

I have as much authority as the Pope, I just don't have as many people who believe it.

We certainly don't want to give them carte blanche authority to determine either what is safe or unsafe without some type of basis for that decision or explaining why.

The reality is that financial markets are self-destabilizing; occasionally they tend toward disequilibrium, not equilibrium.

I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.

A lot of the evil in the world is actually not intentional. A lot of people in the financial system did a lot of damage without intending to.