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by RubberbandSoul
2654 days ago
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It's a kind of extortion on a national or even global scale. "Nice economy you have there. Shame if anything would happen to it." Nassim Taleb's suggestion is to simply deny institutions the option of growing large enough that their demise would threaten the system. Once an entity gets too large to fail it should be split so that the remaining pieces can fail individually without dragging entire system with it. This would get rid of the moral hazard "heads I win, tails someone else loses". |
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If we are specifically talking about the financial institutions, then good luck getting in on some of the biggest deals over banks without the same constraints.