Wall Street Banks: Too Big to ... Invest in?

This crisis was the result of a systemic delusion that effected all financial institutions of every size. 'Too Big To Fail' is only relevant when banks fail due to specific shortcomings at individual big banks. The government can no more allow 1000 billion dollar smaller banks to fail than a single trillion dollar big bank. Also, it is intellectually dishonest to average out the bailout cost at $20k per taxpayer. Taxes are collected under a graduated tax system and thus even the median (middle) tax take is far lower than the average tax take. We middle-class taxpayers don't begin to generate enough tax revenue to pay for even our own personal current tax funded services. The top income percentile pays most of the taxes and one of the biggest beneficiaries of the bubble economy was the taxman who took a big slice of the paper profits that fueled the bubble.

walstir 12:44PM July 11, 2010