The most remarkable statement I heard at the American Economics Association meeting over the past few days came from an astute observer – not an economist, but someone whose job involves talking daily to leading economists, politicians, and financial industry professionals.
He claims “all serious economists agree” that Too Big To Fail banks are a huge problem that must be addressed with some urgency.
He also emphasized that politicians are completely unwilling to take on this issue. On this point, I agree – but is there really such unanimity among economists?
I ran his statement by a number of top academics over the past day and – so far – it holds up. But this may just reflect the kinds of people I meet.
Still, it is an interesting claim that stands until refuted – send or post details of serious people (in economics or elsewhere) who currently think Too Big To Fail Is Just Fine (other than people in government or big banks, of course).
By Simon Johnson