Paul Krugman: Why We DON'T Need To Break Up The Big Banks

Paul Krugman: Why We DON'T Need To Break Up The Big Banks
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Breaking up big banks wouldn't really solve our problems, because it's perfectly possible to have a financial crisis that mainly takes the form of a run on smaller institutions. In fact, that's precisely what happened in the 1930s, when most of the banks that collapsed were relatively small -- small enough that the Federal Reserve believed that it was O.K. to let them fail.

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