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"Too big to fail" is a too big problem

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Even if you argue that AIG and others are "too-big-to-fail" so they need a bailout, we must NOT LET IT HAPPEN AGAIN.

We let smaller corporations merge into these mega-corporations that are inefficient, unable to adapt, or innovate, and ultimately non-competitive - because they don't have to compete - they have the implicit guarantee of a "too big to fail" bailout.

I still question whether the consequences of letting them "fail" will really end the world as we know it, as Bernanke (and may others) say. It's not like propping them up is really working all that great anyway.

If they fail, won't their assets be scooped up by smaller competitive firms and so the system will resume?
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