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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (38725)11/18/2009 1:53:13 PM
From: DuckTapeSunroof  Respond to of 71588
 
Re: I agree. ...I think the reactions to those events has made the problem worse, in particular the bailouts and all the talk of "too big to fail"

I agree with that.

I would also add that there are (at least, probably many more as well) two distinct sectors (government and private financial services industry) who's independent actions have EACH increased the size (and thus the danger to the entire financial system) of "too-big-to-fail".

Government bailouts are (obviously) one factor increasing the long-term systemic risks (unless reversed with appropriate regulatory action) and, as I have already noted, the "too-big-to-fail" firms THEMSELVES have taken great advantage of the global crisis and gotten EVEN LARGER (increasing the scale of the problem even further).



To: TimF who wrote (38725)11/18/2009 2:22:56 PM
From: DuckTapeSunroof  Respond to of 71588
 
U.S. lawmaker unveils financial firm break-up plan

Wed Nov 18, 2009 10:10am EST
reuters.com

Kanjorski Proposes Breaking Up Firms That Pose Risks (Update2)

By Alison Vekshin

“Financial firms that want to play in a casino need to have their own resources to cover their bets and not assume that tax dollars are available in reserve if their bets fail,” Kanjorski, a Pennsylvania Democrat, said in a statement.

bloomberg.com