That is the unstated conclusion of Mark Buchanan's "Living Cells Show How to Fix the Financial System" for Bloomberg.com here:
In “The Architecture of Complexity,” an extraordinarily original paper published 50 years ago, the economist, psychologist and artificial-intelligence pioneer Herbert Simon asked the question, Why does nature so consistently organize itself into hierarchies? Why, that is, are so many of its creations designed as systems of systems? ...
Both high concentration and high interconnectedness contribute to an “everything is linked to everything” outcome that is the very opposite of modularity, and a likely recipe for instability. Financial engineering should learn to avoid this architecture, just as surely as biology has.
Abandoning Glass-Steagall in 1999 was obviously not a milestone of evolutionary progress.
