In a reply to a comment from F.A. contributor Nanny G on Deconstruction of Cruz and Ryan I realized, after writing it, my too casual use of the term, “Too-Big-To-Fail.” Too-Big-To-Fail is a label that has gathered much deceptive moss. Used with some regularity since the economic panic that started in 2007 and accelerated at full throttle in September of 2008, it has been principally used to reference massive banks and many very large international corporations. It has also collected other significance in our lexicon. In comment #6, I attached an additional dismissive, even disparagingly sarcastic sense to the term. As in most things, perspective on this term is all over the place.
The term Too-Big-To-Fail crystallized in September 2008 when the government allowed Lehman Brothers to slide into bankruptcy. This event was used by senior banks to very effectively instill fear in the American taxpayer that the global economy was on the brink of utter collapse. Lehman was simply a sacrificial lamb, a most critical piece in the larger play. That collapse cemented into our collective mindset that there was such an animal as a Too-Big-To-Fail.
Years of rash lending on derelict mortgages, aggregated into questionable packages to be flipped, created trillions in unsecured financial derivatives with fancy names, which were sold to banks, funds, governments and anyone else convinced of borrowing at low interest rates to acquire promises of high returns — sellers and buyers convinced by confused and confusing, but supposedly intelligent concepts. A gigantic musical chairs game run amok, comes to mind. The game was in full swing.
Senseless minds like Paulson scrambled for microphones, conveying such dismay and agitation, even sweating, that we felt their anxiety. Suddenly, our world was about to completely collapse. Surely these titans of Wall Street and of international banking knew something most of us didn’t. Didn’t they? No? Really?
And so, beyond our control, but in full view and without a single moment of questioning doubt from our illustrious media, senior bankers acting as one, turned on the printing presses through The Fed and its associate central banks in Europe, lavishing massive amounts of dollars on themselves. First, billions in gifts, and then trillions with distribution tactics such as Quantitative Easing. Yup, you figure out what that term really means and perhaps you too will get a seat at that table.
To this day the well coordinated and unforgiving monopoly maintains a stranglehold on much of our national and our international economy, and on most of our lives. And from the taxpayers? Silence. We were desensitized by the noise of those printing presses. So much so, that we became lulled into a dream-state, authorizing, even encouraging, through that silence, the creation of trillions of dollars. Trillions not for ourselves, not for our economy, not for our small to medium sized businesses, not for small banks, but for the biggest few. Trillions for the Too-Big-To-Fails.
Were all these bankers really been trouble? If any had been, should they have been “bailed out?” Absolutely not. They were able to hide their actions and even within their own ranks, the “lemmings” bought into the fear — bought into the bailout concept. In this age of crony-capitalism, the largest players decide who is Too-Big-To-Fail and who should be squeezed into dismemberment. With a DOJ like the one America has been subjected to, there is nothing to fear if you are Too-Big-To-Fail. The rest of you, pay-up, or succumb to retribution. The biggest fraud ever perpetrated on a Nation began well before 2008, but in all the years since, the payoff has been more remunerative to its perpetrators than any of them had dared to fantasize.
Too-Big-To-Fail is a deceit. Bankers may employ it with artful cunning, but we should deride it and its meaning. There is no bank or other corporation that should be considered Too-Big-To-Fail. There is no such thing in a system daring to call itself Capitalist. But then, we do not have a Capitalist system. Failure, whether large or small is part of the growth of a healthy and productive nation. The fact that any sector is in fact deemed by its largest members and senior politicians to be Too-Big-To-Fail, is evidence that the system is corrupted and diseased.
We need leadership capable of ending the notion of Too-Big-To-Fail.