You say, “But wouldn't it be better to cut down the financial industry to size so it does not rule politics in the first place?”. That is the question.

I’d add, “…or vice versa?”.

The relation is dangerously symbiotic, evidence of Stigler’s Regulatory Capture. And all sides benefit handsomely.

What is most frightening about business, to whatever extent one has fear, is dwarfed by the threat of Cronyism which wields the powerful sword of government at its side.

One could extend the question…”Are the government and the financial sectors both too big?” And, does this work to the detriment of the Real Economy?

@Danu
This is nothing new and will not stop, the idea multinational banks are anything other than too big to fail is a fantasy. Look at what is going on in the eurozone, do you think Germany can cope with Deutsche Banks 75 trillion USD derivatives liability coming home, 20x German GDP

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild 19th century. How far back do you want to go

Debt is control both politically by government of voters, and by banks of government and the public. As debt grows then control grows

'Debt is such a powerful tool, it is such a useful tool, it's much better than colonialism ever was because you can keep control without having an army, without having a whole administration.' Susan George

This whole article is a fantasy. America wanted all this debt and sought it. Now the fallout is being handed onto future generations and as they gain a voice they are unhappy.

'Blessed are the young for they shall inherit the national debt' Pres Hoover - except nobody asked them and many do not have a job