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1 edit | said by John Keels :
For the banks and other financial institutions that have our money it makes sense to bail them out despite the fact that they were not managing their credit and mortgage business responsibly. Again, all of our money is in the banks.
I liked what someone else said. If a business (financial or otherwise) is "too big to fail" (the justification we keep hearing for bailouts), then they should have been broken up earlier so that we had better competition, and no single company could present such an impact that it requires bailout.
I think that would be a reasonable strategic action instead of waiting for calamity, and then talking tactical actions (bailouts). It would be in the spirit of promoting free(er) markets (rather than promoting the moral hazard that, if you get big enough, you've got society by the b*lls, and they'll bail you out).
The irony is: After the recent bank failures and mergers, we've reduced competition and created even *larger* institutions (Chase takes over WaMu, etc.).
Mark |
