The 20 largest banks’ assets total 84.5”‰percent of the nation’s gross domestic product.
Such banks have become bigger, relative to the economy, since the financial crisis began, and they are not the only economic entities to do so. Last year, the Economist reported that in the past 15 years the combined assets of the 50 largest U.S. companies had risen from around 70 percent of GDP to around 130 percent. And banks are not the only entities designated TBTF because they are “systemically important.” General Motors supposedly required a bailout because a chain of parts suppliers might have failed with it.
But this just means that the pernicious practice of socializing losses while keeping profits private is not quarantined in the financial sector.
To see why TBTF also can mean TBTM ”” too big to manage ”” read “What’s Inside America’s Banks?” in the January/February issue of the Atlantic….
I must admit this challenges ones assumptions. If in the fact the nature of the laws is encouraging a cancerous growth of economic organisms that are deleterious to health, then they do need to be examined and modified. On the whole the more government meddles the muddier the mix.