LIBERTY: “Too big to fail” is a gooferment failure

http://www.openleft.com/showDiary.do?diaryId=12177

Break Up These Banks
by: Mike Lux
Thu Mar 12, 2009 at 17:00

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I also fundamentally agree with David Sirota that if these corporations are too big to fail, then they are too big to exist: a proposition also agreed to by the populists and progressives of the late 1800s/early 1900s, by Abe Lincoln, by Teddy Roosevelt, by FDR, by Harry Truman. Progressives of all eras have understood that corporations that grow too enormous threaten our economy and our democracy, and should be woken up into smaller entities that can’t do so much damage when they are mismanaged. The era of bank consolidation has to come to an end, and these monsters need to be broken into smaller companies just like Standard Oil was in the early 1900s.

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Very good point.

“To big to fail, then they are too big”

It would seem that’s a great principle of regulation!

Wonder why none of the “brains” ever thought of it?

Could it be that the politicians need things big to get political contributions?

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