I now believe Warren Buffett's conversion to full bankster oligarch is complete.
"You will always have institutions that are too big to fail, and sometimes they will fail," Buffett told the Financial Crisis Inquiry Commission in May, according to Bloomberg. His comments were released Thursday by the FCIC.
"We still have them now. We'll have them after your commission report."
The idea that institutions in a free market would grow to absurd sizes so that they can't be properly monitored is absurd. Who would put money in such an institution? The only time such financial institutions exist is when the government plays daddy via the FDIC and the Fed. It creates moral hazard, eliminating the concern of depositors as to the quality of loans being made by the banks.
End moral hazard and depositors would very quickly pay attention to the loans made at the banks, where they deposit money.