Simon Johnson’s latest New York Times’ column is misleading labeled “A Hollow Case for Big Banks.” (Columnists don’t pick their titles; editors do. Curious that the NYT editors would have picked such an innocuous and uninteresting title.) In fact, as he details, there is no genuine case to be make for the too-big-to-fail banking monstrosities that continue to threaten our financial system, our economy and our standard of living.
The financial crisis of 2008, which was the worst since the Great Crash of 1929 and caused the worst economy since the Great Depression, proves this, as Better Markets detailed in its report showing that the crisis will cost more than $12.8 trillion dollars, not to mention the untold human costs from the economic wreckage Wall Street inflicted on our country.
In discussing the “hollow case,” Mr. Johnson details yet another biased, bogus “report” put out by an apparently Wall Street funded front group. On the merits, as Mr. Johnson, shows, the report is rubbish and it’s argument in favor of too big to fail banks is baseless, incomplete and misleading. This is often the case, as Mr. Johnson also shows, highlighting another bogus, industry backed front group “report.” There isn’t any independent, unbiased, non-Wall Street purchased — directly or indirectly — evidence supporting the too big to fail banks that rely on taxpayer banking. If you see what looks like such a report or evidence, ask questions and you will find — sooner or later — Wall St’s money or influence behind it.
Mr. Johnson also details “An interesting debate [that] is developing within the Republican Party on how to approach the problem of too-big-to-fail financial institutions.” This debate got a whole lot more interesting just two days after Mr. Johnson’s column when conservative columnist George Will wrote a column accurately titled “Time to Break Up the Banks.”
The truth is that an emerging consensus of left, right and center is coming together to really end too big to fail by breaking up the banks. Mr. Johnson and Mr. Will not only make the case, but also show that.