Large banks profit from the presumption of a government bailout and the moat created by regulation. They are creatures of government, and they are insured by government, and so laissez-faire talk here is misplaced.Exactly, except I contend this applies to more than just banks.
Perhaps his prescription for more regulation is apt because the banking industry is so hopelessly intertwined with the government, but that's not what I'm here to argue.
To Big To Fail often equates to To Unwieldy To Compete, hence the need for more government protection through favorable regulation. It's these large, government-inflated companies that give capitalism a bad name, and they're cheating at capitalism.
Maybe the banking industry is lost, but it's not to late for many American industries to wake up and smell the subsidized coffee...