I know this question has been asked a million times since 2008, but is there really no way to remove banks and insurers from the 'too big to fail' category?
Given that they abuse the Lidor to their own profit, take billions in 'virtual subsidy' from the implicit protection of taxpayers, surely there are means to reduce the risk they apply to all of us
Can people tell me how naive I am being with some of the below ideas. Where is the list of actually well thought out ideas? :
1. Create global chapter 11 provisions and let them fail
2. Work out some way that chapter 11's wont snowball
3. create a single inter-operable modelling language so that trades are analysed in real time, and force all trades to be public. At least we know how bad it will be this time.
4. err - unicorns? Fairies?
(Honestly, I am asking serious questions. Otherwise its down to the nearest Occupy! rally for me)
If something should be done because large banks are "too big to fail", what should we do about large state govts (CA at the very least) and the US federal govt? They're much larger and have militaries....
Given that they abuse the Lidor to their own profit, take billions in 'virtual subsidy' from the implicit protection of taxpayers, surely there are means to reduce the risk they apply to all of us
Can people tell me how naive I am being with some of the below ideas. Where is the list of actually well thought out ideas? :
1. Create global chapter 11 provisions and let them fail
2. Work out some way that chapter 11's wont snowball
3. create a single inter-operable modelling language so that trades are analysed in real time, and force all trades to be public. At least we know how bad it will be this time.
4. err - unicorns? Fairies?
(Honestly, I am asking serious questions. Otherwise its down to the nearest Occupy! rally for me)
Edit: can't do lists, removed the splenetic