Worse Than It Seems

So the government’s failure to break up the insolvent giants – even though virtually all independent experts say that is the only way to save the economy, and even though there is no good reason not to break them up – is nothing new.

William K. Black’s statement that the government’s entire strategy now – as in the S&L crisis – is to cover up how bad things are (”the entire strategy is to keep people from getting the facts”) makes a lot more sense.

via Guest Post: The Real Reason the Giant, Insolvent Banks Aren’t Being Broken Up « naked capitalism.

I’m not big into conspiracy theories, but this makes a lot of sense. The articles reference the exhaustive arguments for breaking up the banks, and then asks why it hasn’t happened. It makes sense. On the other hand, during a big economic downturn, I can understand leadership’s desire to avoid panic and preserve a veneer of normalcy. But does that strategy serve us well?

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