Reply #49: Assume he's correct. Have they limited debt ratios or only refused to limit size? [View All]

[No Elephants]

BTW, how would you enforce the debt ratio deal? Monitor every transaction involving every large financial institution?

Assume we limited debt in some way, but a company that is "too big to fail" broke that law, then was on the verge of failing. Wouldn't we have to bail it out anyway?

And, you're right. With all the funny accounting and subsidiary creation that goes on to hide bad "assets" and debt, I'd rather have size limits. Can't recall now which company, but there was one that shifted its bad assets to an affiliate every time quarterly financial reports were due.


Why do we need to re-invent the wheel?

American taxpayers did just fine with antitrust laws and Depression Era laws, without killing the economy. Republicans AND Democrats have been dismantling those laws at the same time the number of lobbyists in Washington increased. The result was that the global economy was on the verge of collapse.