Too Big To Be

Obama administration is finally using anti-trust as a treatment for “Too big to fail”.  That is exactly what this blog asked for: http://poweranddollar.com/2009/03/27/anyone-understands-geithner/

Had Bush used this treatment during his time, systematic risk could have been reduced, although not eliminated nor sufficiently managed. 

Did Sherman and Clayton (as in Sherman and Clayton Acts, the anti-trust legislations) have systematic risk in mind?  Certainly not.  However, they were more in the line of if market entry cost is too high due to market makers, then something bad is bound to happen. 

Was that line of thinking new at the time? No.  That is why monopolies have to be granted by the governments in England, as in Crown corporations.  This practice is still in place, just to highlight how much consideration should be given for monopolies.

Interestingly enough Obama administration is trying to enforce tougher antitrust, Obama administration may be guilty of antitrust as well, if Obama administration is in “restraint of trade” or “price discrimination” on health care costs when the administration is trying to “contain cost”.  Unfortunately, critics are only concerned with “quality” or “ration care”.

The problem does not need to get that complicated.