tag:blogger.com,1999:blog-7169279.post2926441082613280280..comments2023-11-24T03:20:02.361-07:00Comments on Tufte's Economics Classes Blog - A Living Textbook: Too Big to Fail…Really?Dr. Tuftehttp://www.blogger.com/profile/17397586052171706438noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7169279.post-18354367848250092452009-03-17T13:22:00.000-06:002009-03-17T13:22:00.000-06:00I think "too big to fail" is a euphemism for "we d...I think "too big to fail" is a euphemism for "we don't have the guts to stand for re-election if this fails". That's not the same thing.<BR/><BR/>One thing we do know from microeconomics is that regulations are fixed costs with respect to most marginal decisions. The way to deal with that is to spread those fixed costs over as many transactions as possible: therefore, regulation leads to size.Dr. Tuftehttps://www.blogger.com/profile/17397586052171706438noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-39468873118432405972009-03-15T18:09:00.000-06:002009-03-15T18:09:00.000-06:00As Sophia said, Antitrust laws are in place to pro...As Sophia said, Antitrust laws are in place to protect us from large corporations who monopolize industries and destroy competition.So this is a good time to analyse about Antitrust laws and government should add more constraints for the policy.Victoriahttps://www.blogger.com/profile/10240674380260411668noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-90751909363731707032009-03-13T15:02:00.000-06:002009-03-13T15:02:00.000-06:00I would agree with the points touched upon in this...I would agree with the points touched upon in this post. It goes along with what was talked about in class about discretionary policy. Bailing out these banks that are "too big to fail" isn't fixing anything. The problem is that they are too big. They need to be broken up so that we don't have this same problem flare up in the future.Jasonhttps://www.blogger.com/profile/05630843611857295829noreply@blogger.com