Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

"Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground
Who is Incapable of Understanding or Doing Anything About It." -- Unknown

“Never argue with stupid people, they will drag you down to their level
and then beat you with experience.” -- Mark Twain

"John Wick didn't kill all those people because they broke his toaster." -MickAK

"Everything is easy if somebody else is the one doing it." -- Me

"What the hell is an `Aluminum Falcon'?" -- Emperor Palpatine

"Eck!" -- George the Cat

Tuesday, November 25, 2008

Moral Hazard

The "conservatives" like to bleat about "moral hazard" as a reason to let GM and other companies fail. The thinking is that companies will not learn their lessons unless some of them fail as a result of their mismanagement.

There may be something to that. But we are not getting there with the bank bailouts. If anything, the message the banks are receiving is that if they are large enough, it doesn't matter what they do, Uncle Sam will be there to prevent them from failing. Yet we can't let the economy collapse and shatter just to teach the banks a lesson.

So what can be done? I don't know, as passing new laws doesn't reach the bad actors who brought about this mess.

Maybe we really do need to bring back the guillotine.

1 comment:

Anonymous said...

I really think that some of the reluctance to help the automakers is a way for the right to stick a finger in the eye of labor. They want to kill the unions once and for all.