What does the term "too big to fail"?

Catchphrase "too big to fail" is used to describe financial institutions that are assumed that they are so critical for economic health that they cannot allow them to fail if financial problems develop. If such entities seem to have problems, government aid may be provided to help them correct the problem and restore. Economic policy entering the failure of key businesses has become the topic of great discussion and debate during the financial crisis in 2000, when government rescue of main societies and industries was used in an effort to stabilize the economy. The first is that some businesses are so large that they can form a significant part of the economic sector and their failure could cause the sector to crash and damage the economy. In addition, the failures of large and small societies have the potential to take other businesses because all companies maintain professional relationships with partners such as suppliers. When the main source of orders disappears, mA smaller society can flourish and the ripple is created. When society is too great to fail, it plays an important role, and investors can rely on the wealth of society as a bell for the economy. If the company fails, investors can panic, step out of other investments and create other economic problems.

Critics of the concept that they are too big to fail that no business should be so great that it could cause economic damage if it disappeared from business. These critics argue that a better way to manage a serious failure of society would be to reduce them by breaking companies, preventing them too much and allowing society to fail if they have economic problems. A more relevant approach to economic prosperity claims that companies should not be rewarded for being on the verge of failure with the help of government.

the application "too big to fail" was somewhat uneven in the eyes of some critics. Some large companies that could expect government aid could fail while others were not. Critics pointed to selective support for specific companies and economic sectors and proposed to interfere with the free market and undermine the confidence of investors.