Armitage Archive

Hacks like these exemplify three attributes that we'll revisit later on in the book. First, "too big to fail" is generalizable. As big banks, real estate, and other "essential" sectors of the economy recognize that they are able to employ the "too big to fail" hack, the market economy as a whole becomes vulnerable to enterprises that expand unsustainably. Second, hacks can be systematized and reshape decision-making: the bailouts in 2008 codified "too big to fail" into law. By demonstrating that the federal government was willing to bail out the banking, real estate, and automotive sectors, Congress normalized the hack as just another part of the high-finance game. And third, the very concept of "too big to fail" changes the incentives of those regulating the massive organizations, and consequently the organizations themselves.