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Per the article, size is correlated with problems but not the cause of them. It happens that large banks are the ones who are more likely to get bailed out, th
by ataggart 14y ago
Per the article, size is correlated with problems but not the cause of them. It happens that large banks are the ones who are more likely to get bailed out, thus they are incentivized to take more risk, so they do. It is the potential for government bailouts/protections that is the root of the issue, thus the proposal is basically to stop doing that.
- aaronblohowiak 14y agoThe problem is not the bailout, per se, the problem is that the bailout didn't wipe-out shareholder value (and executive compensation) in the process.
- dantheman 14y agothe problem is the bailout, just don't bail them out.