Too-big-to-fail is a paradox in the capitalist system. If institutions are too big to fail, and the state must periodically step in to salvage them, then we seem to have punctuated free markets; that is, free markets now and then punctuated or interrupted with periods of socialism.
Punctuated socialism so far rewards those who will not manage risk, and punishes those who do, as well as people who pay taxes and save money.
It is, in its essence, the story of the Grasshopper and the Ants.
Only, now the industrious ants will collectively be taxed and forced to further exertions - probably in the middle of an economic "winter"; i.e., recession - in order that the too-big-to-fail Grasshopper be preserved.
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