Too Big to Fail, How About Too Big?

Bust the trusts.

One of the lessons of 911 was that concentration in a tight geographical area was needlessly dangerous. Most financial firms dispersed and spread operations over different parts of New York City and other states. It was a sensible move.

For the past thirty years consolidation, mergers and market share have all focused on putting too much power in too few hands. How important would AIG be if it was one of fifty peers? What economic advantage is there in having ten major banks controlling the US market if these banks when they get in trouble cause so much collateral damage?

The Soviet Union, at its demise, had one factory building color televisions. The trust busters of Teddy Roosevelt's time had it right. Smaller is better, whether it is broadcasting, automobile manufacturing, banking or insurance. The playing field should be leveled and slightly titled towards regional, and non-oligopoly corporate structure.