&gt;<i>The SNB experienced a massive capital loss when abandoned their peg from 2011 in early 2015</i><p>First of all, I wouldn&#x27;t call a 10% loss &quot;massive&quot;.  The market generally suffers one of those events annually.  Second, it was short lived.  The USD&#x2F;CHF went from 1.01 to 0.86 after it was unpegged.  It now sits at 0.97, 8 months later (1.2, 0.98, 1.08 for the EUR&#x2F;CHF, respectively).  It was a non-event.<p>I mean, I&#x27;m still trying to figure out what point you&#x27;re making.  Are capital market distortions new? Sure, the scale of intervention might be larger.  But the scale of <i>everything</i> is larger today.  And why do you assume that these distortions are always bad? I don&#x27;t.  They have to be examined on their individual merits. I like the government building roads and subsidizing certain industries.  Sometimes it&#x27;s good business.  Maybe buying stock in certain domestic industries is as well.<p>Are shills new?<p>Is an asymetric reward structure new?<p>The basis of the argument against TBTF is moral hazard.  Is that unique to the banking system?  I&#x27;ve seen it suggested on these very boards to incorporate your company ASAP, in order to prevent personal financial liability.  Well, that just might promote higher risk-taking by the entrepreneur.  Or what about the house-flippers?  Heads I cash in, tails I mail the keys to the bank. Are these people too small to fail?<p>This is our system.  I choose to study it as it is rather than compare it to some non-existent ideal.