Monday, March 23, 2009

Too Big To Fail

"If we bail out this one, bad as it is, if we take Continental Illinois and the rest of them off the hook and they don't have to pay a thing, then the markets will know that, no matter what risks they take, the government will bail them out. Eventually, it's going to lead down the road to the nationalization of the banking system."
- William M. Isaac, Chairman of FDIC, 1982

Read this for an excellent summary of the "Original Sin" of the current banking crisis.

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