“Too Big To Fail is not solved and gone,” he said during a press conference. “It’s still here.”
“I agree … 100 percent that it’s a real problem,” he said.
“Too Big To Fail was a major source of the crisis,” he added a little later, “and we will not have successfully responded to the crisis if we do not address that successfully.”
What would happen if we shut the entire federal government down for 6 days? Nothing would happen (with a wee bit of prudent planning). A 6 day shut down is the equivalent of cutting the sequester amount of $54 billion from $3.8 trillion in federal spending this year. In short, reality and governance have become antagonistic concepts in America.
That $54 billion is a paltry sum, given the enormity of federal spending. Even when compared to President Obama’s recent tax increase (of $618 billion), $54 billion pales by comparison. In short, people in Washington are hyperventilating over a reduction in federal spending of only 2.4%, a trim not even a cut by any reasonable estimation. Moreover, the overall budget will continue to rise, because the sequestration only reduces the rate of increase by 2.4%. It is not a true cut, but only a very modest reduction in increase.
By contrast with the modest 2.4% reduction in federal spending imposed by sequestration, the typical American family has endured an actual loss of household income when adjusted for inflation of over 10% since the start of the Obama Administration. We do not hear comparable shrill cries from them about that painful reduction.