Too Big To Fail
Too Big to Fail > Too Big to Save = Too Big
I am a free market capitalist who recognizes the need for oversight and regulation of financial markets, but who also embraces the concept of "little government"; at least as far as market interference is concerned. One lesson I have taken away from the epic events of these past 18 months is that if or when a financial institution becomes "too big to fail", in the parlance of our be knighted times, then it is too big.
No one institution should be so big and so powerful that its demise would pose catastrophic systemic risk. It is ironic that the Chinese and Japanese now hold so much of our debt that they could never "dump" these securities on the market and indeed have no choice but to keep buying Treasuries because: the USA is "too big to fail".
I am a free market capitalist who recognizes the need for oversight and regulation of financial markets, but who also embraces the concept of "little government"; at least as far as market interference is concerned. One lesson I have taken away from the epic events of these past 18 months is that if or when a financial institution becomes "too big to fail", in the parlance of our be knighted times, then it is too big.
No one institution should be so big and so powerful that its demise would pose catastrophic systemic risk. It is ironic that the Chinese and Japanese now hold so much of our debt that they could never "dump" these securities on the market and indeed have no choice but to keep buying Treasuries because: the USA is "too big to fail".
posted by John @ 8:59 AM
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