Excessive borrowing by such banks exposes all of us to risks, costs and inefficiencies. The bankruptcy of a “too big to fail” institution can cause severe disruption and damage to the global financial system. Stock prices can implode. Money markets can dry up. Other banks can face the prospect of default. And it can cause a severe downturn in the real economy.
But then there are the 70 years of peace; there’s free movement across nearly an entire continent; and there’s the world’s second largest economy. All this shows us that what we sometimes feel may be taking away our national sovereignty is in fact adding meaningful value to our lives.