“Too Big To Fail”

The term “Too Big To Fail” is heard frequently. 

However, for all of the talk regarding its danger, very little if anything has been done to rectify the condition. 

As seen in The Wall Street Journal of December 16, p C18, “The top four banks have combined assets of $7.4 trillion, or 56% of the U.S. banking sector’s total.  In 2000, the top four’s $2 trillion of assets accounted for 35% of the total.”

“Too Big To Fail” has many adverse consequences.  Perhaps the most serious is that it potentially fuels moral hazard.

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SPX at 1102.47 as this post is written