Simon Johnson's Latest on Bernanke and Too Big to Fail

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Friday, 01 March 2013 05:23

This is worth reading (that's true of almost all of Johnson's posts). It highlights growing recognition of the too big to fail subsidy enjoyed by large banks and evidence of bipartisan efforts to end it. Just to remind folks that may have forgotten, a bloated financial sector is a drain on the economy in the same way as that huge government department of waste, fraud, and abuse that everyone in Washington is looking for. It also is a source of instability and a major generator of inequality. And, by the way, when it comes to estimating the size of big bank subsidies, CEPR got there first.