> "too big to fail" [...] is a stupid idea It's not that simple. When the government let Lehmann Brothers fail, all hell broke loose. That is the fundamental d

> "too big to fail" [...] is a stupid idea It's not that simple. When the government let Lehmann Brothers fail, all hell broke loose. That is the fundamental difficulty of financial regulation, moral hazard: You have to convincingly say that you won't bail out anyone, and then when things go awry, you have to bail them out. And that makes regulation and monitoring imperative. Well understood and studied.