John Williams wrote:
>
> It appears that small banks are doing fine, taking in deposits
> and lending money to small business that are a good risk.
> It seems we may be observing an active period of market evolution,
> where the larger and highly leveraged institutions are failing
> and a diverse group of smaller institutions are thriving. It
> seems the market is attempting to 
> select for smaller institutions, with many larger ones failing. 
> Unfortunately, the politicians don't like this and seem to want to 
> prop up the larger institutions instead of letting them fail:
> 
So, you mean that - like the previously mentioned biology methaphor -
it's as if an asteroid hit the market, killing the huge predators,
but leaving room for the small predators. If the biology
methaphor applies, it will take a few years for some of those
small banks to grow to dinosaur size.

Alberto Monteiro

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