Posted by Brutus | Posted in Economy | Posted on 27-07-2009
Ben Bernanke, the boss of the US central bank, has defended the US bail-out plan citing his fears of a second Great Depression, during a public talk.
“I was not going to be the Federal Reserve chairman who presided over the second Great Depression”, he said at an event in Kansas.
Helping finance firms as part of the $700bn (£424bn) stimulus plan had benefitted the wider economy, he said.
He added that more regulation was needed so no firm was too big to fail.
You can read the full article above at http://news.bbc.co.uk/2/hi/business/8170577.stm
Here’s the problem I have. No company is every too big to fail. This ridiculous term is anathema to capitalism and liberty. Think about it this way. In the 1850′s, there were companies making buggies. They are no longer around. And what of the largest manufacturer of horse whips, gas lamps, kerosene lamps, etc.
Move ahead to the Alena Steam Car or the Abbott-Detroit autos.
Liberals love to talk about and believe in evolution: eveolution of the species, evolution of society, even an evolutionary Constitution. But when it comes to companies, there is no evolution? Come on. Survival of the fittest says some companies need to die out. They won’t go completely extinct. They will be parceled and sold most likely. This trimming is the best and only way to turn a worthless, unprofitable company like GM–with its greedy union mobsters–into a worthwhile investment.
We can also apply the old maxim, necessity is the mother of invention. Were we to allow these titans to fall beneath the weight of their own lard, someone else would no doubt come along and fill the void. Perhaps 3 or 4 or 12 someone elses. A hundred years ago, there were no televisions or stereos. Now, we have DVDs, wide screen plasma sets, CDs, and satellite radios. Curiously, we are still using the same internal combustion technology for autos.
As long as our pathetic government mollycoddles morons in Detroit (or lsewhere), telling them they are too big to fail, there will be no real invention.
But none of this is about being “too big to fail.” It’s about the government believing the American public is too small and too stupid to stop them from taking away more rights and liberties. Like stare decisis is code for “I support Roe v Wade,” too big to fail is code for “I support socialism and government control of everyone else’s life.”