Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System from Crisis — and Themselves

by Andrew Ross Sorkin

More immediately, however, perhaps the most disquieting development that has taken place during the past decade hasn’t been on Wall Street, but in Washington, in state capitals, in village halls, and in governments abroad. No longer is the phrase “too big to fail” being associated with banks alone. It is now being used to describe cities, municipalities, states, and countries that, like many home borrowers, have become overleveraged. Much recent concern has focused on Greece and other European countries including Spain, Italy, and Portugal, but concerns have also been raised about such rising economic powers as Brazil and China. And as the U.S. debt continues to skyrocket, it, too, could eventually become the basis for a massive financial crisis. In 2008, at the height of the panic, Jamie Dimon’s daughter came home from school one day and asked, “What’s a financial crisis?” His answer: “Something that happens every five to seven years.” By that standard, we are already overdue.