As the paintball game speeds up and all major players dodge faster to avoid designation as bearers of systemic risk, let's not get fixated on "too big to fail" as the past or future cause of the disaster.

There is something worse than "too big to fail," namely, "too few to compete." The rating agencies, for instance, were not too big to fail — but they were too few to compete. The same is true for mortgage servicing.

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