Banks Too Big to Fail are Simply Too Big

One of the reasons for the Dodd-Frank Act of 2010 was fear of financial institutions failing.That fear produced monumental bailouts, resulting in extraordinary budget deficits. Which, in turn, has created legislation such as Dodd-Frank, that’s now dooming our economic prospects for decades to come.

Big banks are being fostered to become still bigger.  

                     

Dodd-Frank is ever-ready to impose layers upon additional layers of stifling regulation. Unfortunately, with no possibility Big Banks will have eliminated systemic risk.

                       

There is a simple, free market solution that has worked in the past, but left-leaning politicians have no clue nor inclinations about its implementation.

                       

They did separate commercial banking operations from proprietary trading, Banks, though, will not be smaller, less risky and less apt to fail now, than did the risk-taking and more leveraged investment entities of the past.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)