יום שישי, 2 באפריל 2010

why the "too big to fail" policy must end


Too big to fail needs to end.

It must end.

Corporations that are as large or larger than states, are not new.

Size becoming a factor that guarantees government bailouts is new.

Once a corporation knows that the national or international economy depends on its existence, then the "worst case uncle sam will come along and help us" mentality comes to life, and as we all know from socialist countries miserable experience of the 60s and 70s and early 80s, this is a killer mentality for a healthy economy and a free & functioning society.

There is only one solution: 
just like the antitrust law, a set of laws preventing corporations reaching the size and strength that means they cannot be allowed to fail.

Being so large that you risk the financial stability of the nation or the world, is just as unfair as being a monopoly.

Over a hundred years ago, american legislators were courageous enough to realize monopoly is a danger to free society. now it is time to realize that too big to fail is just as dangerous, and that it is high time for another example of courage.