Too Big To Fail

There’s been a whole lot written about the sins of the banks that are “too big to fail”. Pundits are wailing away with remedies. Politicians, sensing populist outrage, are thumping their chests. But I’m always suspicious of populist outrage. Why did the banks get so big in the first place? Are there societal benefits? If we “fix” the problem of big banks, what new problems do we create? Maybe everyone should slow down, take a deep breath, and learn why we need big banks.

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