The KGB Oracle Forums General Public Discussion (SPECIAL ACCESS) KGB Political Debate Central Right gets it Right, finally!

The idea that big banks damage the broader economy has considerable resonance on the intellectual right. Thomas Hoenig, the recently retired president of the Federal Reserve Bank of Kansas City, has been our clearest official voice on this topic. And Eugene Fama, father of the efficient markets view of finance, said on CNBC last year that having banks that are "too big to fail" is "perverting activities and incentives" in financial markets - giving big financial firms "a license to increase risk; where the taxpayers will bear the downside and firms will bear the upside."

The mainstream political right, however, has been reluctant to take on the issue. This changed on Wednesday, with a very clear statement by Jon Huntsman in The Wall Street Journal on regulatory capture and its consequences. Before the 2008 financial crisis, he wrote, "the largest banks were pushing hard to take more risk at taxpayers' expense."