Do you remember way back in 2005 when Walmart tried to enter the banking industry? They ran into one little problem: the Washington buzz-saw operated by banking industry incumbents to create barriers to entry. You do not have to believe my version of the story: just read it at Business Week or MSN.com, among other places.
Do you think the banking industry would be poorly capitalized today if Walmart were a major player?
Do you think Treasury policies today will suddenly reverse this course? At least ONE economist needs to join me in reminding the public of the virtues of free entry.