“Ecosystems teach us that sustainability (defined as a combination of efficiency and resilience) is linked to diversity and that concentration means fragility.
Interestingly, British historian Arnold Toynbee has documented twenty-one civilisation collapses due to only two causes:
too much wealth concentration, and an elite unwilling until too late to shift priorities in response to changing circumstances.”
I stumbled across this passage at the end of a paper on moral hazard in the banking sector, from public interest group Finance Watch, whose mission is to make finance serve society (rather than vice versa as is far too true today).
Moral hazard refers to the problem that the costs of the risks taken by banks that are “too important to fail”, or too-big-to-fail, are borne by society, whilst the rewards generated from the risk-taking are kept by the banks (and bankers themselves).