Quote:
Originally Posted by aceventura3
I would argue companies are not too big to fail and that failure is healthy for the economy.
Of the original Dow companies (12 in 1896) only one is still in business as originally chartered, General Electric. The Dow in 1979 compared to today, there are 5 companies out of 30 still in the Dow as originally chartered, Merck, 3M, GM, GE and IBM. Weak companies can get acquired, can go out of business, or can get smaller based on pure economic parameters without interference from the folks in Washington. It has happened in the past in a healthy manner and can happen now in a healthy manner.
I think our current problem with letting companies fail has more to do with "special interests" in Washington more than it has to do with the health of our economy.
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Letting banks like WaMu, Wachovia or Citigroup fail is great... if you're a fan of shotguns and tinned food, quickly degenerating to agrarian society.
Companies do wrong when they become a systemic risk to good governance in failure.
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"I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race, a more worldly wise race to put it that way, has come in and taken their place." - Winston Churchill, 1937 --{ORLY?}--
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