Crypto-blogging in a meeting, but...
One of the questions that came up after my "Resilience Economy Model" post was precisely how we could prevent businesses from becoming "too big to fail." A report on NPR's Marketplace offers one suggestion:
Scale-Based Antitrust. Bob Moon interviewed Zephyr Teachout.
MOON: So how do you augment these antitrust laws to apply to the banks?
TEACHOUT: You could pass a new act, which would join the other antitrust law acts -- Clayton and Sherman acts. This new law would look at size as an independent variable. That could be a combination of looking at profit, assets or market value but would have a default rule that says no company can become larger than a certain size depending on the industry.
Teachout wrote a piece for The Nation, "Trustbusting 2.?" that spells out this argument in more detail.
I haven't had a chance yet to think this through, but it strikes me as a promising direction.