My understanding of “too big to fail” is: Tom and Daisy always win. Tom and Daisy are ontologically necessary, like gravity or the conservation of matter and energy: someone has to smash up things and creatures and then retreat back into their money or their vast carelessness. The problem is that too often we think of this as contingent and are borne back ceaselessly into the past.
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October 26, 2009 at 5:55 pm
How about relying not only on regulations, but also considering Paul Volcker’s advice from experience: being too big is itself a problem that can and should be remedied? I’ve just posted on it at http://euandus3.wordpress.com/2009/10/25/bigger-banks-too-big-to-fail/
See: http://www.msnbc.msn.com/id/33477077/ns/business-the_new_york_times/