Where Does Too Big to Fail Come From?
by The New LedgerMuscling through a rough cold, Francis shares his thoughts on an interesting piece on the Too Big to Fail concept in the latest issue of National Affairs on today’s edition of Coffee and Markets, a daily podcast from The New Ledger on politics, policy and the marketplace with Francis Cianfrocca, brought to you by BigGovernment.com.
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Download Podcast | iTunes | Podcast Feed
You can subscribe to the podcast by following the links above, and if you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.
Related Links:
National Affairs: Too Big Not To Fail
The catastrophe that struck America’s financial system in 2008 was not inevitable. Rather than a failure of markets, it was a failure by government to understand its proper role in markets — and the product of an unwise (and unnecessary) abandonment of a sensible system of rules and boundaries that had served American finance well for six decades.
Beginning in the 1980s, and continuing over the quarter-century that followed, Washington afforded the world of big finance a terrible luxury: freedom from the fear of failure. Managers and lenders at financial companies came to understand that the larger and more complex their firms got, the more immunity from market discipline they would enjoy — since they could depend on government guarantees when necessary to protect the broader economy from their mistakes. The government thus countenanced and subsidized an untenable financial system. And it inevitably got more of what it paid for: reckless risk building up to disaster.
The errors laid bare by the financial crisis clearly call for regulatory reform. But in designing that reform, we should avoid the temptation to seek heavy-handed new approaches — and should instead look to the long-term success of the system of rules whose decay brought about the crisis.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
6 Comments
[...] here to wager the original: Big Government » Blog Archive » Where Does Too Big to Fail Come From? Share and [...]
Actually I think it started with Carter or FDR or Wlison or mabey just the Leftist
I view failure as helping to point out weakness. Whether the weakness is a bad idea, a bad decision, or just circumstance it serves a healthy puprpose, it prevents the problem from getting worse.
The economy is knowing being built on a scaffolding held together with duct tape with our government telling us it's as solid as a rock, as they add another layer on top.
This can't end well, I fear for my kids,
This country started failing big time, when BOTH parties allowed ACORN and SEIU to grow so big and DEMAND that the banks give out loans to people who could not pay them back, as this is a communists tactic, 'everyone DESERVES housing' …they left out the 'affordable' part!! If the banking business had any b@lls it would have called the police and put ACORN out of the banks!! They were too easily intimidated, therefore doomed to fail!!
Disgraced serial plagiarist Ben Domenech.
Remember this?:
"As the previous links on the matter mention, at least one of the pieces Ben Domenech is accused of having plagiarized was a movie review for National Review Online. A side-by-side comparison to another review of the same film speaks for itself. There is no excuse for plagiarism and we apologize to our readers and to Steve Murray of the Cox News Service from whose piece the language was lifted. With some evidence of possible problems with other pieces, we're also looking into other articles he wrote for NRO."
Well Christmas is too big to fail, or is it?
http://americaspeaksink.com/2009/12/obama-santa-o...
You must be logged in to post a comment.