Companies “Too Big To Fail” Should Be Illegal

25 11 2008

In this, the land of eternally capitalistic motivations, companies have learned that to be dominant, or at least competitive, it’s better to be big. Big gives you economies of scale. Big means you’ve bought up your competitors and, by default, now command more market share. Big apparently also means that you are unnaturally immune to the detrimental aspects of taking extreme risks or incompetent management.

Yes, today the new corporate nirvana is reached when your company has been deemed to be too big to fail (TBTF).

Looking at the current economy and the behemoth players flailing for rescue I understand the mutual benefit that necessitates saving them. We as a country cannot function without their continued existence. I get it. I understand we are backed into a corner on this and that we (and of course by “we” I mean our government) must save these companies from their own excessive greed and criminal negligence.

However, if a company has been deemed “too big to fail” and we are required to rescue it I would like to suggest the application of one of two mandates.

  1. Any TBTF company receiving government bailout money must be divided into two or more smaller economically non-critical corporations.
  2. If it is not feasible to divide the TBTF company then it is apparent that the company in question has grown so large that it can no longer assume ultimate responsibility for its own actions. Since that responsibility by default falls onto the shoulders of the American public such a super critical company must, by necessity, become a part of the federal government.

These sort of sanctions would solve the TBTF problem but would also serve to act as a deterrent to companies (*cough* auto industry *cough*) from looking for free handouts just because the government looks like it’s in a giving mood.  Additionally all government regulatory bodies that review corporate mergers (like the FDIC, FCC, FTC, SEC, etc.) be required to consider future deals with the TBTF test in mind.

Maintaining healthy competition among equals would go a long way towards strengthening our economy and would inspire new innovations. It would also encourage companies that feel they are above the laws of capitalism to rethink the risks they assume knowing now that if they fail their company will be divided or absorbed into the federal government.

What do you think? Do you have a better idea?

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Chicken Little Or Nostradamus?

25 11 2008

Peter Schiff made numerous appearances on Fox news and it’s astonishing to watch his spot on analysis so glibly dismissed by the conservative cheerleaders.  I don’t suppose Fox will go back and highlight how right he was and how wrong their people were.  Seriously, this is pretty amazing to watch.

PS: Ben Stein, you’re a pompus self important ass pustule.





Banks Allocate 86% ($108B) Of Bailout Towards Compensation And Bonuses!

9 11 2008

Amazingly my ongoing outrage at the Republican party has been outdone by my new found rage towards the heads of the banking industry.  I just read a letter the honorable Henry Waxman sent to the CEO of Wells Fargo where he chastises him and eight other banks for putting $108 billion of the currently allocated $125 billion tax payer bailout dollars towards compensation and bonuses.

This is so reprehensible as to defy credulity.  If there were calls for regulation and oversight before I think it is clear that there should now be calls for the seizure of all personal assets, arrests, and imprisonment for these cowards and honorless thieves.

All of Al Qaeda’s attempts to wound this country combined pale in comparison to the damage the US has suffered at the hands of these craven traitors.  I would stop short of the death penalty only because I want these tender pampered racketeers to spend the rest of their lives in Guantanamo getting the best Dick Cheney has to offer because they are domestic terrorists of the highest order and deserve no less.

(hat tip to Driftglass for the initial point to the Waxman letter)





One Other Thing

7 11 2008

You know my last post where the republicans are finally fessing up to what an incompetent douche’ Sarah Palin really is?  Yeah, well we liberals have a little confession to make too.

Sorry about that, but it really feels good to come clean like that.  I suppose we’re even now, right?  Right?





GOP Innoculating Themselves Against “Palin 2012”

7 11 2008

Conservatives are peering into the smoking crater left behind by the McCain campaign and they don’t like what they see.  It is obvious to all now that a large part of McCain’s failure was due to the staggeringly short sighted and cynical selection of Sarah Palin.  The conservative power brokers are cognizant that any influence she might try to wield in the future would only serve to create more catastrophic disasters across the Republican national landscape.   This is a terrifyingly confident and ignorant monster of their own creation and they simply cannot risk the possibility it might someday wreak more havoc.

So if you think the liberal media was hard on Sarah you haven’t seen anything yet.  The  conservative propaganda machine is a wrathful beast and is not at all squeamish about eating one of its own.  Sarah Palin is about to be turned upon by the same charlatans who buttressed her high pedestal just three days ago, and the carnage should be so terrible as to transfix anyone who might accidentally gaze upon it.

That is to say, get your popcorn.





This About Sums It Up

5 11 2008

At least the good guys won this time.





On Behalf Of President Obama, Thank You George W. Bush!

5 11 2008

Mr. Bush, I’m sure it wasn’t your intent but I think it’s clear that Barack Obama couldn’t have made this historic ascent to the presidency without you.  Let us look at your list of accomplishments that brought Barack to this extraordinary moment.

Looking back to 2000 you smeared John McCain with such vicious and impossible lies that the man who had successfully resisted years of torture at the hands of the Vietcong was left utterly broken.  The resulting Stockholm syndrome Mr. McCain suffered from rendered him a stultified shell of the independent man he once was, now agreeing with your cynical and often criminal policies 90% of the time.

Your astonishing ability to lay waste to everything you touched meant that John McCain would never be able to hide from the shame of his trauma induced complicity.  McCain’s failed attempts to emulate the very dishonorable methods you vanquished him with eight years ago only served as evidence that he had tragically succumbed to your reprehensible mindset.

The outrage felt towards you and your accomplices by the American public is only rivaled by our collective shame for electing you a second term to complete your life’s contemptible master work.  It is only in the election of Barack Obama that your hopes of reducing the patriotism of this nation from a flag raised by bloodied soldiers over Iow Jima to a lapel pin (made in China) has failed.

No Mr. Bush, as much as you have done to vandalize and plunder this country and everything she stands for we Americans must ironically thank you.  We thank you for showing us the darkest avarice and vulgar incompetence this country is capable of.  You have shown us the worst and challenged us to prove we can be better.  Only from the ashes of your comprehensive and abysmal failure can someone as noble and worthy as Barack Obama rise up and bring forth the promise of hope anew.  America is shattered and divided now but she will someday rise again and be far better…despite you.