Tuesday, May 5, 2009

Too Big to Fail - A Medley of Corporate Greed

"Too Big To Fail" Is Un-American
Eric Hippeau
Managing partner, Softbank Capital
The Too Big To Fail Doctrine is cited today as the reason for bailing out our financial system and our auto industry. Hundreds of billions of public dollars have been sunk in this endeavor so far, with little sign that it has done more than just postpone the inevitable.
The Too Big To Fail Doctrine is nothing more than the rebirth of government Industrial Policy, whereby politicians and bureaucrats pick winners and losers in the economy. More here

The Stress Tests Fail The Smell Test
Arianna Huffington
The results of the much-anticipated bank stress tests are finally set to be released on Thursday -- after the markets close. But we can already give the Obama economic team a grade for the way the tests have been handled: F. More here
Mike Lux
Author, The Progressive Revolution: How the Best in America Came to Be
Most of us who have been working on the banking issue from the restructuring side of things (meaning put the big banks into receivership and break them up into smaller components that are no longer too big to fail), including people I know far closer to the administration's economic team than I am, have come to the conclusion that the administration's policy regarding the big Wall Street financial institutions is fairly set for the time being.
There are a variety of reasons Obama has chosen this path - the fact that Geithner and Summers really believe it is better to resuscitate the big banks rather than to fundamentally restructure them, the belief (reinforced by the Senate's recent failure on cramdown legislation) by senior administration officials that despite the populist anger among the general public that there is no political will in DC to take on the big banks, the reality that most of the media's shallow interpretation about whether something works is whether the Dow Jones goes up the day the plan is announced. More here

2 comments:

  1. why are you so anti-american? Not all Americans are lazy dumb asses. Some of us have real jobs and we still actually find time to think. We don't all shop til we drop. Stop falling for the easy to do American bashing. If you're not part of the solution you r part of the problem. What do you contribute, in real life, not cyberlife? Step up.

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  2. Dear Anon - what do you consider a "real job"?
    What do you consider "contributing"?
    Also, if you are not a "dumb ass", how come you commented in the wrong post and spelled "you're" wrong?

    -g

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