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Investments glossary

Too Big to Fail


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Drugs are not always necessary, but belief in recovery always is.

— Norman Cousins

Too big to fail describes a business or business sector deemed to be so deeply ingrained in a financial system or economy that its failure would be disastrous to the economy. Therefore, the government will consider bailing out the business or even an entire sector—such as Wall Street banks or U.S. carmakers—to prevent economic disaster.


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