The term “systemic” is thrown around with gay abandon these days. Everything, it seems, can somehow be classified as systemic. Put another way, some people like to argue that a bad event in one part of a system can have a profound impact on the entire organ. It is taking Lorenz’s butterfly affect from the sublime to the ridiculous. A butterfly flapping its wings in Brazil does not cause a tornado in Texas, figuratively, alliteratively, or practically. It might be a colourful way to describe the perils of weather forecasting. But it is dangerous when we start to draw parallels with the finance industry. But that hasn’t stopped commentators from warning that the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank and for that matter, Credit Suisse, could infect the entire banking system. Whatever happened to everyone taking responsibility for their own actions? It certainly raises the issue of moral hazard or taking excessive risk because...