Comments by "SmallSpoonBrigade" (@SmallSpoonBrigade) on "Why The 2022 Nobel Prize For Economics Is Making People So Angry" video.

@p2p104 One of the great failings of the Great Recession was that none of the bankers involved went to prison. Until the C level executives have to worry about prison time from these sorts of shenanigans, it'll keep happening as it's not exactly the best and the brightest that wind up running banks.
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The short answer is corruption. Banks were allowed to gamble with money deposited by despositers above and beyond the typical mix of mortgages and loans. Up until relatively recently there had been laws on the books requiring that banking and investing activities be walled off from each other so that the FDIC wasn't on the hook for the much riskier bets involved with the stock market. The rest of the answer is that it was a decision to bail out the banks rather than simply buy up all the trouble assets and start cancelling out the various credit default swaps that were threatening to swamp the entire world's economy. It would have been far more effective than what we ultimately did. (Although it was still a massive improvement over what was done during the great depression, so progress)
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Absolutely, no institution, with the exception of the government, should ever be that large. And even with the government, there's a reason why so many large nations use some form of federalism where there's a national government and smaller local governments. It greatly reduces the concentration of governance into one body. Even China with it's concentrated governance in one party, still has smaller government offices spread through the country and they aren't always in lock step with the official CCP.
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@JohnnyCash101 They were mostly smaller institutions though that were taken over by the FDIC before they had a chance to outright fail. Apart from Bear Stearns and Lehman Brothers, it was mostly smaller banks that lacked the capitalization to survive the mandated stress tests that were taken over.
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@BOSSDONMAN There were other alternatives, for example simply buying up all the troubled assets and then going in with a hatchet and tearing up these "too big to fail" financial companies into a larger number of companies.The problem is that the elites didn't want that in recent precedence having more or less killed antitrust regulations that would have reduced the likelihood of this happening.
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