Wednesday December 10, 2008 Too Big to Fail = Too Big
In light of all the bailouts of various companies deemed "too big to fail", maybe it is time to start thinking about stopping a merger if the resulting company falls into that category, or breaking up companies that are already at that point? If a company becomes soo big that they just "assume" the government will bail them out in case of failure, then it seems natural that their CEOs will take dramatic risks in search of ever increasing profits, knowing that the american tax payer will be their safety net in case of failure.
I personally don't like the idea of interfering with the market in general, but I do believe that monopolies, cartels, trusts, etc. are bad for the market, and maybe we just need to add "too big to fail" to that list as well.
Thoughts (as if anyone reads this blog)?
Posted by rickg ( Dec 10 2008, 05:33:33 PM PST ) Permalink Comments [0]