Too Big to Fail

"Too Big to Fail" refers to financial institutions or corporations whose collapse would significantly harm the economy. Because their size and interconnectedness mean that their failure could lead to widespread economic turmoil, governments often feel compelled to bail them out to maintain stability. This concept gained prominence during the 2008 financial crisis when large banks were rescued with taxpayer money to prevent a cascading effect on the financial system. The term raises concerns about moral hazard, as it may encourage risky behavior if organizations believe they will be saved from failure.