No bank, however big and well capitalized, can withstand the onslaught
of a
systemic breakdown of market-wide counterparty exposure built by
multilevel
marketing of liabilities such as subprime mortgages and their
securitization.
Coming Implosion: Too Big To Fail and the Theory of Large Numbers
Monday, 11/9/2009 - 11:30 am by Henry Liu
Roosevelt
Institute Braintruster Henry C.K. Liu examines the failure of the Obama
administration to address the risky business of Too Big to Fail banks —
which are getting bigger all the time.
The potential failure of banks deemed too big to fail (TBTF) presents unsolvable challenges for policymakers. Because the systemic impact of such failures on the financial, economic and social order is unacceptable, government has to intervene in a market crisis.
That's makes me confusing. if the big one even could fall. Which one would we choose?
Posted by: Online MLM | Thursday, March 25, 2010 at 01:24 AM
Which is precisely why reinstating the Glass-Steagall act should be the first of many steps to help address this situation.
Posted by: TexasCowboy | Tuesday, November 17, 2009 at 11:11 AM