Monday, March 17, 2014

Fixing Too Big To Fail

A lot of people are unhappy with the big banks, the "too big to fail" banks. This is both on the left and the right. But these banks exist at their present size because they are being protected by all of us linguistically. The language frame that we perceive them is hiding a basic fact that would easily fix the TBTF problem. Stop adopting the language that protects their size. They claim to be "too big to fail". This is another way to say underinsured.

Everybody knows what to do with an underinsured financial institution. You pull your money out, if you can, and go work with some other institution that is not underinsured. These guys get a diet and shrink down to the point where they are no longer too big to fail.

You don't even have to spend a minute on writing up legislation. All you have to say is one word, consistently, when you mention them, "underinsured". Anyone can do it. Would you?