Deregulation

Non-avian dinosaurs became gigantic as they dominated the landscape but did their size lead to extinction when disaster struck? Deregulation that led to business mergers leads to giantism of business which is like putting all your eggs in fewer baskets. If one or more of them fail then the industry or business collapse. The present financial crisis is the perfect example. Brokerage firms and insurance firms merged with banks. Banks were no longer behaving like banks but promoters of stocks and various financial instruments at their disposal for sale. The disaster is the huge debt created by the combination Iraq War expenditure and free trade outsourcing of jobs and trade deficit. The disappearance of high-waged jobs leaves low-paid employees in a bind to find home ownership a dream out of reach as the real estate prices skyrocket. The mortgages seem unrealistic so real estate disaster of defaulted mortgages should come as no surprise.