Scary metaphor of the day

This today from the WSJ:

Federal Deposit Insurance Corp. Chairman Sheila Bair said bank regulators would have the tools they need to banish “too big to fail” institutions from the financial landscape once a Wall Street overhaul bill becomes law.

…Ms. Bair said that new powers allowing regulators to seize and liquidate failing institutions would act like a threat hovering over the financial industry, deterring firms from growing too large or reckless.

This is a kind of a nuclear bomb that you hope you never have to use,” Ms. Bair said. “The fact that it’s there, I think, is going to be important. And if we have to use it, we will.”

So I now have this mental image of a nuclear bomb “hovering” over Wall Street waiting for some bureaucrat to hit the ignition.  Like we don’t have enough to be worried about with this bill already!

Lovely.

2 thoughts on “Scary metaphor of the day

  1. And here I was thinking we already had bankruptcy laws and procedures on the books that covered this, not to mention the laws of economics guided by free market principles. This is yet another example of government intervention (bailing out insolvent companies and even encouraging excessive risk taking – Greenspan put anyone?) leading to even more government intervention.

    “Too big to fail” is a concept that wouldn’t exist without government.

  2. If only political parties could be considered “too big” to fail. It would be nice to do something about the catastrophic failure of the Republican and Democratic parties.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s