The idea that a business has become so large and ingrained in the economy that the government will provide assistance to prevent its failure. “Too big to fail” describes the belief that if an enormous company fails, it will have a disastrous ripple effect through shout the economy. The idea of too big to fail should never be possible. No single financial institute should have the power of bringing down our entire economy. The taxpayers should not have to be worried about whether or not their money is safe. There obviously has been a lack of leadership going wrought the economic system.
If there were strong leaders put in place originally to deal with this situation, then so many things could have been prevented. A crisis that nearly destroyed our nation would have never even made it to the surface. I blame the lack of leadership for the economical scare. The worlds leaders should have been containing the problem as it started instead of allowing it to get that big and potentially blowing up. Fannies Mae and Freddie Mac could have been saved. But instead each bank was focused on their own needs which is understandable and appropriate.
But since they were intertwined so heavily was no longer an option. These institutes should have kept their distance to prevent something from happening. Our economical leaders should have practiced better leadership skills and not but all our dollars in one basket. Because just like in 2008, if any piece of that basket were to break or be destroyed we all would go down. The buyout may have worked this time, but that is simple a patch on the service of our overall problem. Get some strong leaders in those seats and all these problem might just go away.