Comments on: Debunking The Notion Of Too Big To Fail http://www.ritholtz.com/blog/2009/05/debunking-the-notion-of-too-big-to-fail/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:30:38 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: FromLori http://www.ritholtz.com/blog/2009/05/debunking-the-notion-of-too-big-to-fail/comment-page-1/#comment-172669 FromLori Mon, 18 May 2009 04:47:56 +0000 http://www.ritholtz.com/blog/?p=26674#comment-172669 Too big to save should be the motto perhaps if they knew they had to live with consequences of their actions like us mere mortals do they would learn a valuable lesson. I do not think we should be bailing out anyone including the people who took "Liar's Loans" or those who were greedy thinking it would be a fast way to make a buck or those who used their homes as a means to buy things they could not otherwise afford since when is it acceptable to gamble and make others responsible for your losses? Having said that this is another "Glaring" hypocrisy.... D-O-U-B-L-E Standard http://www.butasforme.com/2009/05/15/video-as-gm-closes-1000-dealers-an-obama-double-standard-emerges/ Too big to save should be the motto perhaps if they knew they had to live with consequences of their actions like us mere mortals do they would learn a valuable lesson. I do not think we should be bailing out anyone including the people who took “Liar’s Loans” or those who were greedy thinking it would be a fast way to make a buck or those who used their homes as a means to buy things they could not otherwise afford since when is it acceptable to gamble and make others responsible for your losses? Having said that this is another “Glaring” hypocrisy….

D-O-U-B-L-E Standard

http://www.butasforme.com/2009/05/15/video-as-gm-closes-1000-dealers-an-obama-double-standard-emerges/

]]> By: johnbougearel http://www.ritholtz.com/blog/2009/05/debunking-the-notion-of-too-big-to-fail/comment-page-1/#comment-172473 johnbougearel Sun, 17 May 2009 15:00:27 +0000 http://www.ritholtz.com/blog/?p=26674#comment-172473 Debunking the "too big to fail" propaganda is a must. At least one Fed official Thomas Hoenig, agrees. This propaganda combined with Greenspan and the bnaking industry's asssumption that the industry was capable of "self-regulation" combined to make a particularly lethal Molotov Cocktail to the US economy. You see, too big to fail meant the banks became implicitly guaranteed by the US govt, or GSE's. And once they became implicitly guaranteed by the govt, well, then, under the new "self-regulation" regime they could all sorts of recklessly insane self-destructive behaviors, as they ultimately had the govt, i.e. the taxpayers to backstop their chicanery. No, "too big to fail" is a paradigm that must die. That has to become one of the lessons we takeaway from this crisis. if the banks knew they would beco Debunking the “too big to fail” propaganda is a must. At least one Fed official Thomas Hoenig, agrees.

This propaganda combined with Greenspan and the bnaking industry’s asssumption that the industry was capable of “self-regulation” combined to make a particularly lethal Molotov Cocktail to the US economy. You see, too big to fail meant the banks became implicitly guaranteed by the US govt, or GSE’s. And once they became implicitly guaranteed by the govt, well, then, under the new “self-regulation” regime they could all sorts of recklessly insane self-destructive behaviors, as they ultimately had the govt, i.e. the taxpayers to backstop their chicanery.

No, “too big to fail” is a paradigm that must die. That has to become one of the lessons we takeaway from this crisis. if the banks knew they would beco

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