http://libertyslifeline.com/2010/06/28/the-regulators-are-dead-long-live-the-regulators/
The Regulators are Dead, Long Live the Regulators
Jun 28, 2010
2010 Election, Bailouts, Economy, Fiscal Crisis, Liberty, Obama, Politics, Taxes
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Senator Chris Dodd and Representative Barney Frank were at the heart of the financial debacle, claiming that Fannie Mae and Freddie Mac were in sound financial shape. Meanwhile Senator Dodd was getting a sweetheart mortgage from Countrywide as a “Friend of Angelo” Mozillo, the CEO of Countrywide. Now we are to believe that Senator Dodd and Representative Frank have ridden to the rescue and have crafted the solution we have all been waiting for, just don’t ask about Fannie and Freddie, they aren’t included in this master work.
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“Too big to fail” means too big to permit to exist.
In the real world of nature, there’s a limit on growth and size. Bee colonies split. Poor people emigrate. You can only grow so big.
Common problem for publicly traded companies is they can’t grow at a rate sufficient to command a premium multiple in the stock market.
So the problem is yet unaddressed.
Some ideas might be an arbitrary limit on a company’s balance sheet. A “too big company” might be subject to tighter financial regulation, an insurance tax, or even an absolute limit.
Without the gooferment, in the real world, the huge enterprises couldn’t exist. Logistics don’t scale. Competitors emerge.
It’s sad!
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Reinke Faces Life 