I need some help sorting through some ideas I have concerning the reason the banking system needs bailouts, and how to restructure it so that it won't. I also want to discuss how best to disperse the resulting proposition/argument. The root of the problem, as I see it, is that the banking system is fundamentally unsound. This because, while a bank holds assets backing its liabilities, the maturity of those assets (several years in the case of morgages) far exceed the maturity of the banks liabilities (zero/instant). In effect, the bank is backing fully liquid liabillities with illiquid assets, meaning...