In the aftermath of the 2008 U.S. financial crisis the phrase “too big to fail” became a part of Americans social vocabulary.
The recent bailout in Spain and the turmoil in Greece, give me heart that “too big to fail” isn’t just an American thing.
As a general rule, I don’t like the notion of giving bailouts to countries that spent like there’s no tomorrow during good times, and now find themselves knee deep in debt.
Private citizens would not be afforded such opportunities, why should governments be so special?
The interconnected and global nature of the world economy is what makes governments special. If Spain and Greece go belly up, they take economic interests in Europe and the United States with them.
I don’t think people can understand that point enough. Having a globalized economy means that our fates are interconnected, whether we like it or not.
What we should be rallying against throughout the United States and Europe is the culture and circumstance that have made “too big to fail” institutions okay.