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I've wanted to see something like the BRAC Commission but run out of the President's Economic Advisor's Office or similar. Annually, this commission would put
by jerrya 14y ago
I've wanted to see something like the BRAC Commission but run out of the President's Economic Advisor's Office or similar.
Annually, this commission would put out a list of any company in any industry deemed too big to fail. That could be a bank. It might be a manufacturer that is basically the default monopoly manufacturer for some very large industry. The list would include reasons of why they were too big to fail, the likely outcomes of their failing, and how the US would probably be forced to prop them up, and various parameters and formulas for sizing them.
Once listed as too big to fail, the company should have 90 days to appeal and one year to reduce to a smaller size, however they want to do it.
If there was some engineering problem, in which components of a system could grow too large and force the entire system to become dependent on them, what are the steps and engineer would take to analyze, quantify, and possibly rectify the system?
It is interesting to me, that we can allow too big to fail to happen, and then having happened, happen again and again.