Why the fuck are we buying this excuse? letting companies get so big that their collapsing influences the world economy in a significant way is REALLY irresponsible, and, so, "too big to fail" seems to me like these companies should be the first we let fall. yeah, it'll suck in the sort run, but now is the time to unmake out foolish mistakes.
I'd rather see the government break them into smaller pieces. complete failure would be catastrophic. as corporations, they are meant to serve the public good in some way. i think I would agree that getting too big works against the public good and it ought to be forestalled in the future.
I agree, I can actually understand both sides in this, the best action I can think of is if we bail them out they should be forced to divide these companies up into several smaller companies, and make them completely separate entities. ie: not just large GM but a chevy, a buick, etc.. etc and no more Money management but a seperate, mortgage, savings, investment etc. etc.
It's like J. Maynard Keynes (look him up if you need to) said: If you owe the bank a hundred pounds and you can't pay, you have a problem. If you owe the bank a million pounds and you can't pay, they have a problem.
Equity Firms. Joe the janitor has his pension benefits tied up with GM shares. Can't let people's retirement savings fail.
I know about him because of stratford on keynes (by way of bletchey park) we need to take care of the O.A.P's, but wee also need to address the excessive mass of these corps.
I didnt see any link to this because its so fresh but here you go: http://bloomberg.com/apps/news?pid=20601109&sid=arEE1iClqDrk&refer=home 7 trillion dollars... Was hyperinflation on anybodys christmas list this year?
we can if we set up a corporation to take care of them like we did for railroad workers. and if we get a decent social safety net we let a lot of companies fail and new one take their place.
Greenspan testified that his biggest mistake was thinking that private companies could manage their own money more responsibly than could government bureaucrats. As Greenspan points out, the private sector is incapable of even taking a pee without the government holding it for them.
Greenspan testified that his biggest mistake was thinking that private foxes could manage their own henhouses more responsibly than could government bureaucrats. Hey look! I edited your quote and now it can be a fairy tale!
"We have in many ways humiliated ourselves as a nation with some of the problems that have taken place here," Paulson said in an interview with CNBC television.
In all honesty, I wish I knew wtf wsa going on with the bailout. I hear "too big to fail". Ok... I hear "we have to buy the bad mortgages now or else" ok... I hear "oh, we aren't doing that we're injecting capital instead." ok... I hear "We won't bailout the auto makers but we're gonna prop up Citi." ok... I am just bummed out. It was such a fun little fantasy world we had going.
