Banks That Are Too Big to Regulate Should Be Nationalized – NYTimes.com

23 Jul

Simons (a hero of the libertarian idol Milton Friedman) was skeptical of enormity. “Few of our gigantic corporations,” he wrote [in 1934!], “can be defended on the ground that their present size is necessary to reasonably full exploitation of production economies.”

The central problem, then as now, was that very large corporations could easily undermine regulatory and antitrust strategies. The Nobel laureate George J. Stigler demonstrated how regulation was commonly “designed and operated primarily for” the benefit of the industries involved. And numerous conservatives, including Simons, concluded that large corporate players could thwart antitrust “break-them-up” efforts — a view Friedman came to share.

Simons did not shrink from the obvious conclusion: “Every industry should be either effectively competitive or socialized.” If other remedies were unworkable, “The state should face the necessity of actually taking over, owning, and managing directly” all “industries in which it is impossible to maintain effectively competitive conditions.”

via Banks That Are Too Big to Regulate Should Be Nationalized – NYTimes.com.

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One Response to “Banks That Are Too Big to Regulate Should Be Nationalized – NYTimes.com”

  1. Charlie Keil July 23, 2012 at 7:06 am #

    I suppose this may be a step toward a necessary consciousness shift at the NY Times, but it is too little too late. “End the Fed,” which the NYTimes dismissed in an anti-intellectual outburst opening its smear campaign against Ron Paul on the editorial page, is still the necessary and practical first step in overthrowing the 1%’s control of the 99%.
    Technofascism is still technofascism wether the big banks control the government or the big government controls the banks.
    Who do YOU trust more, the big government or the big banks?
    Since they have been collaborating for decades, centuries even, this is not a real or serious question.
    Getting rid of the global bank behind the American empire is the best and quickest way to put all banks into competition with each other for inspiring our trust. We can take our money out of any bank that seems untrustworthy. Get it? The 99% voice can be heard. Today your Federal tax dollars (I refuse to pay) are used to prop up the Federal Reserve Bank that props up banks in the USA & all over the world. That warm rain you feel today is just Uncle Sam trickling down on you.

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