Too Big to Fail Should Be Too Big to Exist

Against Monopoly has a great graphic that shows a big part of the problem with our financial sector and our economy. The four banks shown above are the four largest banks in the U.S.: JP Morgan Chase, Citi, BofA, and Wells Fargo.  Together they dominate the financial industry. If you add in Goldman Sachs and … Continue reading Too Big to Fail Should Be Too Big to Exist

Iceland Shows Banks Are Not Too Big To Fail

Few nations were hit harder initially by the financial crisis in 2008 than Iceland. It's economy had grown rich around four very large (relative to Iceland) banks that were players in the big global casino financial industry expansion.  In the U.S., U.K., and most other large developed countries governments responded with large bank-bailout packages.  The … Continue reading Iceland Shows Banks Are Not Too Big To Fail

Krugman Misses Boat on TBTF Banks

Today Paul Krugman claimed: From Ben Bernanke’s encomium to Milton Friedman: It was in large part to improve the management of banking panics that the Federal Reserve was created in 1913. However, as Friedman and Schwartz discuss in some detail, in the early 1930s the Federal Reserve did not serve that function. The problem within … Continue reading Krugman Misses Boat on TBTF Banks