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Simon Johnson: 'Too Big To Fail' Banks Will Precipitate Another Meltdown

Simon Johnson Too Big To Fail

First Posted: 05/23/10 06:12 AM ET Updated: 05/25/11 04:55 PM ET

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bloomberg.com:

[Alan] Greenspan the bank buster crops up near the end of "13 Bankers," Simon Johnson and James Kwak's reasoned look at how Wall Street became what they call "the American oligarchy," a group of megabanks whose economic power has given them political power. Unless these too-big-to-fail banks are broken up, they will trigger a second meltdown, the authors write.

Read the whole story: bloomberg.com

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[Alan] Greenspan the bank buster crops up near the end of "13 Bankers," Simon Johnson and James Kwak's reasoned look at how Wall Street became what they call "the American oligarchy," a group of megab...
[Alan] Greenspan the bank buster crops up near the end of "13 Bankers," Simon Johnson and James Kwak's reasoned look at how Wall Street became what they call "the American oligarchy," a group of megab...
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loki
Better to die fighting, than live on knees
1322 Fans
01:05 PM on 03/24/2010
and who was it that made the Phrase To big to Fail part of the US gov lexicon?
You know it, baby Bush and friends. And now we have to deal with this created monster.
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DiogenesOfAlaska
Mitt Romney for president - of the Cayman islands!
339 Fans
07:32 AM on 03/24/2010
The Bloomberg article - and to some extent probably also the book - are sabotaging their own case by making it sound like historical evidence or precedent is needed in order to arrive at the conclusion that the concentration in the banking sector is an extremely undesirable feature from the point of view of market integrity and market efficiency.

No evidence for that is needed. Also Alan Greenspan didn't need any Standard Oil example to arrive at this conclusion. And I'm not saying this to diminish T. Roosevelt's insight.

It WAS NEWS about the free enterprise system (that's how capitalism is called in Texas now) at the time of T. Roosevelt.

It is NOT NEWS now. And WE DO NOT need historical precedent now. It's a truth about markets that has long been demonstrated. Mathematically. It's a theorem. No use discussing it. It's a fact.
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HUFFPOST SUPER USER
drkazmd65
Mom Taught me - Question Everything - Thanks Mom!
585 Fans
01:08 AM on 03/24/2010
Too true,.... too true.

GS, JPM, Citi, BoA,... all to big to allow to continue. Yet each is only increasing in financial power, clout, and in their lack of competition.
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huff po fan
2 Fans
04:38 PM on 03/23/2010
No kidding
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