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Fraying the Social Contract

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  1. The usual “too big to fail” argument is that everyone else will suffer if we don’t bail out this particular set of risk-takers. Your post makes me wonder whether that mightn’t be a good thing now and then. It would encourage everyone else to keep a close eye on the risk-takers and to avoid getting their own affairs too entangled with them. We just need to find someone who’s not quite too big to fail.

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