October 15, 2012

GEORGE WILL: “Too Big To Fail” Banks Are Too Dangerous To Permit. I agree. Break ’em up. As Will says: “Capitalism — which is, as Milton Friedman tirelessly insisted, a profit and loss system — is subverted by TBTF, which socializes losses while leaving profits private. And which enhances the profits of those whose losses it socializes. TBTF is a double moral disaster: It creates moral hazard by encouraging risky behavior, and it delegitimizes capitalism by validating public cynicism about its risk-reward ratios.”

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