Tag Archives: Too big to fail

Why we have to limit their size

The main lesson of [the bailouts] is that society cannot permit the existence of private institutions that are too large to fail. And that’s not only because they might eventually fail and then we are on the hook for their liabilities. It’s also because the lesson of the bailouts — both the auto and banking […]

Giving the power to Wall Street

The Obama administration, like the Bush administration before it, believes in the necessity of financial monsters like Citi, Bank of America and AIG. The proof is in their approach to fixing the credit and banking crisis. On Friday, the details of Treasury Secretary Geithner’s plan to save the banking system were leaked. As others, like […]