It's not that some individual banks got too big to fail.
It's that finance got too big, too embedded in everything, so that if finance fails, the whole economy fails. That's the problem.
The same problem makes economic failure likely. Finance is too big.
Oh, and by the way, we did fail. We called it a "financial crisis."
Yeah. And Krugman says: "We got into this mess because we had an over-financialized economy."
ReplyDelete