tdager
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LittleIronPilot
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2) Perhaps it's time to regulate critical institutions - or break them up - so as not to let a critical institution get 'too large to fail'. This would minimize risky behavior as it would hold management & shareholders accountable for such behavior (such allows the institution to go into bankruptcy, as opposed to bailout).
Interesting - and certainly solves one problem, but may through baby out with bathwater. OTOH, larger institutions tend to have greater reserves and (if diverse enough) a portfolio that mitigates risk through diversification. it may be where certain candidates are headed.
My friends' commented that they never would have suggested these had 1) the government stuck to capitalist theory and declined the bailout, or 2) had other Wall Street entities stepped up to the plate instead of the Feds. Had commercial interests stepped in, there would have been a price.
I have actually been thinking the same thing. No institution/company should be so big as to be "too big to let fail".
Sorry, but that is NOT capitalism. I think the Fed has only prolonged the problem, again, with their meddling.