Bigger Failures Ahead

The idea that banks shouldn’t become “too big to fail” prompted calls for reforms in the US financial industry. Regardless of the attempt and regardless of the consequences, the biggest banks continue to grow and are now collectively 15% bigger than just before the Great Recession. The banks and other financial institutions were bailed out with massive amounts from taxpayers. Bailouts now would necessarily be larger, but would probably face a backlash. Last time, we saved the institutions hoping it would benefit the people. Since then, wealth and income inequality have increased, the middle class has shrunk, and most Americans are experiencing diminishing wages. Next time, we may find out what happens when the institutions fail. Not a good situation, whichever path we pick.

(Click on the graph for the link.)

“Too Big To Fail, And Only Getting Bigger” – Oxfam