Too Big To Fail

Watch out America. I believe a new wave of corporate mergers and acquisitions are about to happen.

It is obvious that if a company is too big to fail then the government – which we should all remember is us – will without question or accountability keep them in business. Yet so many other businesses are let to fail – even some big ones like Lehman Bros.

There, of course, has been much outrage surrounding the AIG executive bonuses but not as much as for the massive bailout effort.

The too big to fail syndrome is sending a bad message to large corporate America and to all the small businesses that are failing. The message is get so big that you can’t control your business, can’t manage it properly, take large salaries and bonuses and don’t worry about profitability. In fact, losing money is good and necessary to gain government benefits.

Bigger is not better and in fact not even manageable by anyone. Even Shiela Blair – Chair of the Federal Deposit Insurance Corporation (FDIC) said on a recent television interview that banks should not be allowed to grow as large as they are and their size should be restricted. I agree with her statement.

The average person in this country and the average small business in this country has to jump through hoops in hopes of getting a loan – the too big to fail company – just needs to make a phone call and it’s done.

History many of us teach our children is a good teacher yet it seems no one in our elected government and unelected government – ie. Ferderal Reserve Chairman and Secretary Treasurer – seem to have learned that lesson. I am sure somewhere along the line one of their parents must have said something like that to them. Well, maybe not but certainly somewhere in their lives they have been exposed to that comment and maybe even said it themselves.

What is really wrong here is that we, the people, who employ our government representatives say and do nothing. Sure we gripe about it to our friends and neighbors but never out loud. Are we too affraid of the too big?

We now have ownership stakes in the banks and especially in AIG where we – the government who is really us – owns 80% of that company. To me that means we the people and collective owners do have a say on what is paid out and to whom. If our Congressional leaders will not assert our ownership rights and decision making process then we should do so individually. I am a stockholder and owner – however small – but just the same I am an owner not the government. We too often treat our government as a separate entity, a separate power with its own voice. This is wrong. If this is still America then we the people still are its rulers who elect others and pay those others to run our country on a daily basis. They are still responsible to us.

Back to AIG, Citigroup, Bank of America and all those others that have taken our money and spent it not for our benefit but for theirs. They are accountable to us – if not by demand of our government officials then by demand of those they owe the money to and to those that do have an ownership interest in them – us.

Keep in mind that us – meaning you and me – also says U.S., the United States. If us is U.S. and U.S. is us then you and me together – us – have a right to direct the acitons of these too gib to fail thieves.

Of course, this is just my opinion, I could be wrong.

Post a comment or leave a trackback: Trackback URL.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: