Too Big to Fail

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. "Too Big to Fail" is a phrase referring to the idea that in economic regulation, the largest and most interconnected businesses are so large that a government cannot allow them to fail because said failure would have a disastrous effect on the economy. This means that it might encourage recklessness since the government would intervene (e.g. by bailing out the company) in the event it was about to go out of business. The phrase has also been more broadly applied to refer to a government''s policy to bail out any corporation. It raises the issue of moral hazard in business operations.

Klappentext

High Quality Content by WIKIPEDIA articles! "Too Big to Fail" is a phrase referring to the idea that in economic regulation, the largest and most interconnected businesses are so large that a government cannot allow them to fail because said failure would have a disastrous effect on the economy. This means that it might encourage recklessness since the government would intervene (e.g. by bailing out the company) in the event it was about to go out of business. The phrase has also been more broadly applied to refer to a government's policy to bail out any corporation. It raises the issue of moral hazard in business operations.