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I don't think the original post claimed that "regulations are fine because the banks had bailouts." On the contrary, they were pointing out that banks complaini
by cmiles74 9y ago
I don't think the original post claimed that "regulations are fine because the banks had bailouts." On the contrary, they were pointing out that banks complaining about regulations was clearly self-serving and we probably should keep that in mind.
I do think that if we would like to avoid bailing more banks out in the future, some changes need to be made in the way that banks conduct business. To my mind, regulation seems the most straightforward path to this goal.
- humanrebar 9y ago> To my mind, regulation seems the most straightforward path to this goal. It's not that complicated to break up too big to fail entities, encourage dynamism and competition in the sector, and just let them use traditional methods of failure (bankruptcy, merger, etc.) going forward. Heavy regulations, perhaps counter-intuitively, benefit too-big-to-fail banks the most since the overhead of compliance is relatively small compared to small banks and banking startups.