Too Big To Fail
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-by Juan Liberale
If you're a careful reader of the comments, you've probably run into Juan Liberale. Juan's just started his own blog and I hope you'll check it out. He just cross-posted this interesting observation that big thinkers should have been doing something about a couple decades ago. Juan:
Too big to fail is a new phrase that is costing American taxpayers dearly. When a company is too big to fail, it is so large that its failure would have a detrimental effect on the US and world economic stability.
The question we must then ask is, why are they allowed to get so god damned big? The answer is that Reagan, Clinton and Bush never met a merger that they didn't love. That is 24 solid years of gluttony gone wild. When companies merge it is almost always bad for labor. It is good for the company on many fronts. Fewer companies equal less competition. [And it's really great for the middlemen and deal makers on Wall Street and K Street.] Being large makes it easier to bribe your favorite congressman to pass laws that enhance your ability to rob people. Growing really big allows you to be a really big bully.
The Treasury should conduct a study of all large corporations and determine which are too big to fail. If you are too big to fail, well then, you are too big to exist. It is time for a little prophylactic action. Let's have some legislation that forces companies 'too big to fail' to break apart into smaller entities that are NOT too big to fail. I would also support legislation requiring them to buy failure insurance (from AIG?) so that, if they wish to remain large, their failure will not be a burden to all of us poor dumb bastards who are forced to bail them out.
Labels: dinosaurs
posted by DownWithTyranny @ 7:00 PM
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2 Comments:
The bigger they are the harder they fall. High overhead and full of the Peter principle. The Corporation was invented to make money and limit liability. They do not live and breath. Yet society has made the mistake, through its supreme political court, of giving full rights to the beasts. They have succeeded in heisting all the cash, trampling on individual rights and destroying the environment as well as representative democracy. They don't have to breath or need clean water all they have to do is make money.
It is obvious that making money and making sense are mutually exclusive . The sooner the beasts are put on the ash can of history the better.
Humanity must start making sense. Science has provided all the tools to make this possible unlike religion and politics.
The phrase 'To Big to Fail' is crazy doublespeak.
Essentially this whole financial mess is a result of the old-fashioned trust learning to adapt and to live on by looking a little different. Time to get back to trust-breaking.
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