Are they still Too Big to fail?
All we ever seem to do these past thirty years is kick cans down the road...
The Fed is playing a dangerous game.
They get one bank, JP Morgan Chase in this instance, to ‘buy’ the failed bank(s) that pop up.
That does not ‘fix’ the problem, it merely take sit off the front pages and TV screens of America, and John Q. Public thinks ‘All is well!’.
But it’s not.
They have simply taken a poison pill and put it into a healthy bank.
The bad loans that the failed bank made are still there, the depositors’ and investors money is still gone, and the Government is still on the hook................
“Are they still Too Big to fail?”
Could the question be ‘Are WE too big to fail?’ because we taxpayers are the ultimate bailer-outers.