Still "Too Big To Fail"

[Zkribbler]

Fannie Mae, Freddy Mac, A.I.G., the Big 3 auto makers, and the list of other companies that are "too big to fail."

They took extraordinary risks, reaping huge profits when they succeeded [and paying huge bonuses to the execs.] and passing the bills for their failures onto us, the taxpayers, when they failed. We had to fork over the money because these companies are so big that if they fail, they'll take our entire economy down with them. Because these companies had no risk of a downside, the risks they took were even larger and more foolhardy.

So what, if anything, has been down to alleviate this problem?

[SpencerH]

It's a fallacy that any of these companys are 'too big to fail'. While there's no doubt that their failure would've caused hardship, propping up their diseased carcasses will cost the country more in the long run.

[St Jon]

We faced exactly the same Government reaction in the UK though, if anything, our beloved leaders did an even worse job. The one and only thing in terms of personal welfare, if life long indebtedness can be equated with welfare, is home ownership and house prices. Likewise in the business sector manufacturing and technology stands or falls on its' own, generally it falls or falls into the hands of others with no interest in British prosperity, but financial services are Sacred Cows that must be protected at all costs.

The long term costs of this policy are disastrous but we are governed by those that think only as far as five years ahead! The bulk of the population have been so brainwashed by the propaganda spewed out by all the major polical parties over the virtues of home ownership and 'invisible' earnings to the economy that few seek to question them.