18.2.09

Too big to fail

Why were the banks, insurance companies, car makers and others allowed to grow to such sizes that their failure could bring down whole national economies, if not the whole world financial system? Isn´t it obvious, given that there seems to be a consensus about the obligation of the government to save these companies, that government should also be responsible for restricting their growth, to prevent such companies from ever becoming too big to fail in the future?

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