On Thursday, Larry Kudlow interviewed Rep. Spencer Bachus on CNBC.
I found one comment Kudlow made, starting at the 6:17 mark, to be especially notable:
“Many people believe that the top 5,6,8 banks are in fact too big to fail and constitute government sponsored enterprises in effect. That is an unfair advantage in the credit markets that is sort of like Fannie and Freddie all over again…you know private profit but public taxpayer risk….”
As time goes on, the issues of “Too Big To Fail” and “Moral Hazard” are being discussed less and less, which is unfortunate. There are many aspects of each of these concepts that are profoundly important to our economic system.
A Special Note concerning our economic situation is found here
SPX at 1293.24 as this post is written