AEIdeas

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Discussion: (11 comments)

  1. finally!
    I am so glad to read these words. I will summarize it as this: Too big to fail is too big to exist. America was built by individual ideas, not by corporate monster companies. Companies that are too big to be understood by one person, and therefore guided by a single CEO with singular ideas must go. No more monsters means when a bank goes down, I am not obligated to hold it up. Excellent article

  2. What I never get about the “too big to fail” talking points is how the obvious is never mentioned; The Federal Reserve is the only real bank and everyone else large or small is a branch. The assumption of the absolute power of the central bank systems is acceptance of too big to fail and makes all of these talking points very shallow and hypocritical. It’s just make believe to segment “banks” and to ignore the central entity that pulls all levers in the entire system and give that entity immunity. We should talking about breaking up central banks and replacing them with an organized private banking structure based on stable money (as opposed to the government inflation system at hand). To big to fail targeting only the actors (banks) is just another form of anti-reform political correctness for those who understand who has engineered the current levels of financial failures on a global basis.

  3. Thomas Sullivan

    Those wonderful, big foreign banks are built on borrowed, printed money from their government sponsors. They will go pop! someday. So will ours, but for different reasons, if we let them continue to exist. Banks always manage to overdo it. We must be able to let the stupid ones die. Free enterprise requires the death penalty for businesses which fail.

    While we are at it, reduce FDIC insurance to $15k. Stop underwriting gambling through the banking system, and the dumbass banks which gamble.

  4. Does the US economy really need supersized megabanks?“…

    What the heck? Why not?

    Afterall the US economy is saddled with a trillion dollar welfare system

    To big to fail?

    Let’s face it, no one is actually being forced to use the mega banks, right?

    Yet we’re all forced to contrubute (ha! ha!) to the welfare system…

  5. A few huge banks would be real bad.
    1. “Too big to fail” does not mean it won’t fail it means that when one does fail it tanks the whole economy.
    2. Having a few big banks makes it easier for the government to control or take over them.

    Either way American loses.

  6. retired military

    Does DHS really need 500 million rounds of hollowpoint ammunition?

  7. If the mega banks believe they need to continue being mega banks to stay competitive, that is okay with me as long as the American taxpayer does not have to rescue them again. However, as I understand Dodd-Frank, if they screw up again, the taxpayer will legally have to rescue them again. This is “capitalizing” the profits for the few mega bankers and “socializing” the losses at the expense of the American taxpayers collectively.

    1. Thank you, JoyO. That was a rational comment. I am tired of some of the closet collectivists at AEI trying to use the existence of the bailouts which they advocated for as an excuse to impose antitrust on the banks. Some of these guys are really, really anti-free market and pro-government control and are searching for any little pretext to interfere in the markets.

      1. WM, the reality is it was a socialist system long before the 2008 “Crisis”. That the focus is on individuals who exploit a system at hand or the going on about “big” banks vs. “small” when they are all part of a contained central banking system is beyond logic. The failure is based on government excess and broad socialist expectations of almost all participants. Why is this taboo to discuss?? Too big to fail is usually one of the most ignorant of financial debates when two of the largest participants (U.S.Government and it’s streetwalker the Federal Reserve) are always ignored.

        Add insult to injury that both Dodd and Frank should be in prison for their personal exploits relating to the financial system and the irony only grows. The financial system which is government based and failed only grew more powerful over the individual and markets since 2008. Why do why have to listen to these scapegoat arguments over and over about various participants from essentially guilty parties?

  8. Banks are slaves to the system at hand, the Federal Reserve and the government is what “too big to fail” really means. We should stop pretending, it’s a socialist failure already. Whining about “banks” is make believe outrage.

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