The words “too big to fail” almost sound like a vanity license plate. Unfortunately, we have come to find that it has been the risk management philosophy of many of our largest banks. Bummer for us.
The last week or so, there has been a lot of dialog in the financial news that we are about to nationalize the banks. I just read this and thought it was a pretty interesting op-ed piece in the WSJ (Nice article on the joys of taking over a bank.)
Apparently, taking over a bank is not nearly as much fun as it sounds. In fact it sounds like a lot of hard work.
I guess this would suggest that the banking system may not so much be “too big to fail”, but even more sobering, “too big to save”. IF that is true (and I am not convinced) that is indeed a big bummer for us.