Comment on "RIP Good Times": Silicon Valley's Cuban Missile CrisisparentComments−damoncali14yObviously, you can't let them all fail, but if you don't let significant banks go under, how do you address the systematic moral hazard that encourages this behavior? It's a big problem, that, if anything, is worse now than it was in 2008.−btilly14ySplit the banks up. One bank that is too large to fail can become 5 banks that individually can fail.Unfortunately we've gone the other way.
Comments
Obviously, you can't let them all fail, but if you don't let significant banks go under, how do you address the systematic moral hazard that encourages this behavior? It's a big problem, that, if anything, is worse now than it was in 2008.
Split the banks up. One bank that is too large to fail can become 5 banks that individually can fail.
Unfortunately we've gone the other way.