The United States needs a safer way to shut down large nonbank financial firms without destabilizing the entire financial system, Federal Reserve Chairman Ben Bernanke said on Friday.

“We have such a regime for insured depository institutions, but it is clear we need something similar for systemically important nonbank financial entities,” he said in prepared remarks to a community bankers convention in Phoenix.

We also need a way to make sure that officials in our government don’t start adopting regulations and passing legislation that are clearly unconstitutional. I bet we see the “never to big to fail” idea long before we see any real legislation to fix this mess that doesn’t borderline on violating at least one clause of the U.S. Constitution.

If you have no idea what I am talking about, check out the next post I make.

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