It’s Time to Break Up the Big Banks

Everybody talks about the “Too Big to Fail” problem: financial institutions that are so huge and interconnected that, when they run into a crisis, the public will always bail them out, because the consequences of not doing so would be catastrophic for everyone. Nobody does anything about it. Maybe that’s because banks have powerful lobbyists; maybe it’s a human psychological flaw that causes us to stop worrying about inevitable future crises as soon as the last crisis seems to have passed. More »