Paradise Lost: Addressing Too Big to Fail (Economic Institutions and Programs) (Essay‪)‬

Sometimes it helps to contemplate economic predicaments by seeking wisdom from definitively noneconomic sources. Consider this passage from Book III (lines 98-102) of Milton's Paradise Lost, where God answers the question of why He created men and angels who could rebel against Him. Of man, He responds: As is clear from this most celebrated work of literature, the issue of whether entities--be they mortal or divine--should be allowed to fail is one of the oldest philosophical quandaries. It has been debated for eons on a much higher plane than economics or finance. And yet Milton is germane to the vexing issue of institutions considered "too big to fail." There is no way we can reasonably expect to restore global financial stability without addressing that issue.