Too Big to Fail
"Too Big to Fail" refers to financial institutions or companies whose collapse could cause significant disruption to the economy. These entities are often so large and interconnected that their failure could lead to widespread financial instability, affecting jobs, savings, and the overall market.
During the 2008 financial crisis, several major banks, including Lehman Brothers and AIG, were considered too big to fail. Governments intervened with bailouts to prevent their collapse, aiming to stabilize the economy and restore confidence in the financial system. This concept raises questions about accountability and the risks of moral hazard in the financial sector.