Debunking the "Too Big To Fail" Myth

As MIT economics professor and former IMF chief economist Simon Johnson points out today, the official White House position is that:

(1) The government created the mega-giants, and they are not the product of free market competition

(2) The White House needs to "regulate and oversee them", even though it is clear that the government has no real plans to regulate or oversee the banking behemoths

(3) Giant banks are good for the economy

In response to the latest claims by the government, let me recap the real reason the government doesn't want to break up the too big to fails.