The Dilemma of Bailouts

Ever because the bailout of Continental Illinois Financial institution in 1984, financial institution bailouts have been an unpopular system invoked to guard the monetary system from dangers posed by troubled banks deemed “too massive to fail.” Though the Dodd-Frank Act prohibits taxpayer-funded bailouts, it leaves the monetary system uncovered to meltdowns and promotes the shifting of threat from giant “systemically essential” monetary companies to smaller, less-regulated ones.

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Roy C. Smith

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