Too Big To Fail
Posted in Random Thoughts on March 30th, 2009 by corey“Too big to fail” is a mantra we’ve been hearing from the liberal congress and dictator president for the last several months. What this means is that any one of several corporations, such as General Motors or AIG, in the event of becoming insolvent, would have a negative impact on the economy of the entire world.
While this idea has merit, I feel that throwing trillions of dollars of our money at these corporations to bail out their poor business decisions is just the wrong way to go about it.
I would posit that the US economy is too big to fail. How about we take all that bailout money that is currently being pissed away on foreign banks like Deutsche Bank and give it back to us, the American People. Then WE will decide who deserves a bailout by the nature of where we spend it. WE will buy stuff which will help the economy as a whole and help a large number of ailing businesses. WE will decide that maybe Ford or Honda runs things better than GM by nature of which company we buy cars from.
Would GM fail? Maybe. Would it kill the whole economy when they then filed chapter 11? Probably not, as the rest of the economy would be charging along with all that cash we the people would be spending, which would allow the problems of GM, AIG et al to be absorbed into the larger picture.
So if the bailouts won’t really work as intended, i.e. fix GM, AIG and the economy as a whole, why do it? Because the goal of our present administration is not to fix these things, but rather to grow the power and influence of the government far beyond where it should ever be allowed to reach.
Don’t believe me? Then why did Obama just demand that the CEO of GM step down? If we allow the government to proceed down this course, there will be a lot more of that to come, and not just at the corporate level, but individual rights will become subject to executive decree as well.




