Comments on: From Antitrust to Anti-Systemic Risk http://www.concurringopinions.com/archives/2009/07/from-antitrust-to-anti-systemic-risk.html The Law, the Universe, and Everything Tue, 14 Feb 2012 14:29:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: TRUTH ON THE MARKET » Too Big To Fail as an Antitrust Concept http://www.concurringopinions.com/archives/2009/07/from-antitrust-to-anti-systemic-risk.html/comment-page-1#comment-65563 TRUTH ON THE MARKET » Too Big To Fail as an Antitrust Concept Thu, 17 Sep 2009 19:06:26 +0000 http://www.concurringopinions.com/?p=18365#comment-65563 [...] failure would cause substantial damage throughout the economy.  The idea might be catching on.  Frank Pasquale recently cited to Johnson’s work favorably.  The idea has also been favorably cited by [...] [...] failure would cause substantial damage throughout the economy.  The idea might be catching on.  Frank Pasquale recently cited to Johnson’s work favorably.  The idea has also been favorably cited by [...]

]]> By: A.W. http://www.concurringopinions.com/archives/2009/07/from-antitrust-to-anti-systemic-risk.html/comment-page-1#comment-64639 A.W. Mon, 20 Jul 2009 21:22:51 +0000 http://www.concurringopinions.com/?p=18365#comment-64639 I'm not a fan of Ron Paul, but he said one thing that was smart, in a sort of "broken clock is right two times a day" sense. "If you subsidize something, you get more of it." So if you subsidize risky behavior, you get more of it. The answer isn't to say anything is too big to fall, but to let it fall. then let everyone understand that they need to watch every investment, to understand that anything can collapse. Then the people will price the risk more realistically. I’m not a fan of Ron Paul, but he said one thing that was smart, in a sort of “broken clock is right two times a day” sense. “If you subsidize something, you get more of it.”

So if you subsidize risky behavior, you get more of it.

The answer isn’t to say anything is too big to fall, but to let it fall. then let everyone understand that they need to watch every investment, to understand that anything can collapse. Then the people will price the risk more realistically.

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