"Too big to fail" fund backed by private companies

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Treasury secretary Geithner endorses Barney Frank's recent proposal to have a fund to bailout 'too big to fail firms', funded by companies with over $10B in assets. This type of security net for your competitors is an astounding concept, one that would be ridiculed in other industries (would Budweiser shed any tears if Miller went out of business? would they provide any money to prop them up?!)

The beauty of this plan is that it might actually avoid the other Wall Street dirty word: regulation. Even with the market meltdown, Wall Street has been resolutely against the need for more regulation.

Well here's your solution. Instead of providing regulation, you create 'unemployment insurance' for Wall Street. So everyone lives their life, if someone gets sick, you tap this social bailout money, paid for by your well heeled community. Basically government washes their hands of a private sector problem, Wall Street gets to chain smoke/drink all they want, if someone gets in trouble, it comes out of the community kitty.

I like it: its different, but it might be crazy enough to work.
Source: — Lounge |