We have dreamed for some time of an America with a democratic government and a moral economy. Representative democracy is difficult, unwieldy and frustrating. A moral economy is not achievable without stringent regulation.
A moral economy under a democratic government would be strictly regulated rather than sporadically punished and reluctantly rescued from it own excesses. Competition ought to be promoted but not at the expense of workers, or, worse, those whose skill sets do not fit the current economy.
An economic engine or institution that is "too large to fail" is a trust, or a monopoly. Democratic government has recognized the danger of trusts in a representative democracy for decades. In fact, the presidential administrations most admired by most Americans are those that set limits on trusts, regardless of party. Theodore Roosevelt was a Progressive Republican, Franklin Roosevelt and Harry Truman were Democrats; all of them were trust busters.
There were others.
As the GOP splits into two factions, Progressive and Reactionary, assuring the Democrats the White House, the House of Representatives and perhaps even the Senate in 2012, it would be well to remember this lesson of history. A moral economy is not a managed economy so much as it is a regulated economy, with institutions kept small enough they can fail if they are inept or crooked, without taking the rest of us down.
Opinions expressed here are mine alone.