Eliot Spitzer: Make no company too big to fail

[dilloduck]

That sure motivates me to start a successful business.

Downsizing some of the extremely large corporations wouldn't necessarily be a bad thing. No one is talking about shutting them down, just splitting them up into separate entities that can each be profitable on their own. Many of these mega corporations are into so many things that they could easily be split up. And it certainly wouldn't effect the reasoning for someone to start a new business.

At the same time, companies that could be split up would probably just move to using shared resources.

Any smart businessperson who has his hands in more than one pocket would know not to form an umbrella corporation that does it all. Instead you form several companies that do it all and if one fails, you have the others to rely on.

You don't have to even bother with that should Spitzer get his way. The Government will do it for you whether you like it or not.

 

[auditor0007]

Oh brother. It's the politicians that are saying the companies are too big to fail. Just imagine how many great car companies could be created if the government didn't use our tax dollars to bail-out poorly run companies? Spitzer is wrong. No company is too big to fail and the government shouldn't be in the business of breaking companies apart or bailing them out.

Remember Ma Bell?

 

[xsited1]

Oh brother. It's the politicians that are saying the companies are too big to fail. Just imagine how many great car companies could be created if the government didn't use our tax dollars to bail-out poorly run companies? Spitzer is wrong. No company is too big to fail and the government shouldn't be in the business of breaking companies apart or bailing them out.

Remember Ma Bell?

Yes, I'm old. Great article btw:

Unnatural Monopoly: Critical Moments in the Development of the Bell System Monopoly

 

[Old Rocks]

Eliot Spitzer On Today Show: Talks Extent Of Prostitution Use, "I've Tried To Address These Gremlins" (VIDEO)

I think it's horrible how this guy got booted out of office because he had a high-end prostitute at his beck-and-call... the amount of help this man could've been in the past 6 months is clearly understated.

Spitzer: Take the companies that are too big to fail and break them up and next time something like this happens, they won't be too big to fail.

our government is failing us yet it keeps getting bigger.....

Our government failed the average citizen for eight years. Now we have a government that is more responsible. Will they be able to clean up the debacle left by the Neo-cons? I hope so, but it is a huge task. And, of course, the miscreants that created this situation are trying to blame anybody else but themselves.

 

[Seraega]

Oh brother. It's the politicians that are saying the companies are too big to fail. Just imagine how many great car companies could be created if the government didn't use our tax dollars to bail-out poorly run companies? Spitzer is wrong. No company is too big to fail and the government shouldn't be in the business of breaking companies apart or bailing them out.

Actually, in the case of big banks like Citi and BoA, it's the FDIC that says they're too big to fail. The FDIC does not have the manpower to handle breaking either of them up right now. When they are properly staffed and prepared, I fully expect that at least these two will be broken up into smaller regional pieces.

 

[Seraega]

Oh brother. It's the politicians that are saying the companies are too big to fail. Just imagine how many great car companies could be created if the government didn't use our tax dollars to bail-out poorly run companies? Spitzer is wrong. No company is too big to fail and the government shouldn't be in the business of breaking companies apart or bailing them out.

The only American car company that received a bailout before 2008 was Chrysler in 1979. Between 1979 and 2008, no American car company received a bailout. How many other American car companies sprung up between then? Zero.
Your argument is flawed.

The failure of Lehman Brothers pushed us from a mild recession to a deep recession even possibly depression. If a company like AIG, that is far more important to the world, had failed, 1932 would have been a walk in the park.

There were plenty. You of all people should know this. And now the big companies are finally giving way to let smaller companies effectively compete and yet the government is bailing them out. How sad.

In the case of the auto manufacturers I agree. Tesla has a very comparable model to the GM Volt ready to go to market without any government cattle prods. I don't see why we're propping up the maker of the Escalade Hybrid. Give me a break.

Tesla Model S $49,900

 

[Xenophon]

They left out the end, where he said that all hookers should take mastercard.

 

[editec]

Sound like good advise to me.

Sort of "Don't put all your eggs in one basket" common sense.

It's a damned shame that Spitzer's sexualy proclevities destroyed his career.

He was a real asset to his community.

 

[Xenophon]

No he wasn't, he misused his authority time and again as AG of New York, he was a bully and a crook, trying browbeat people to do what he wanted or he would prosecute them, it didn't matter if they did anything wrong or not.

In short, Eliot the hypocrite can fuck off.

 

[Sarah G]

Eliot Spitzer On Today Show: Talks Extent Of Prostitution Use, "I've Tried To Address These Gremlins" (VIDEO)

I think it's horrible how this guy got booted out of office because he had a high-end prostitute at his beck-and-call... the amount of help this man could've been in the past 6 months is clearly understated.

Spitzer: Take the companies that are too big to fail and break them up and next time something like this happens, they won't be too big to fail.

And I agree with your post. Another person who said it was Robert Reich, both smart people. Break them up.

 

[editec]

Oh brother. It's the politicians that are saying the companies are too big to fail. Just imagine how many great car companies could be created if the government didn't use our tax dollars to bail-out poorly run companies? Spitzer is wrong. No company is too big to fail and the government shouldn't be in the business of breaking companies apart or bailing them out.

It sounds good when they say that they are to big to fail while continuing to strip the nation of it's wealth.

Just more crony capitalism. If your company sucks, get the government to help crush your competition.

That is the best argument for why this is a bad idea.

Of course, that is the best argument for allowing monopolies to exist, too.

And sometimes that argument definitely makes sense, and sometimes it definitely doesn't.

I don't honestly know if it makes sense in the case of the financial crises we're having, now, because I cannot honestly KNOW if AIG going down would have caused tens of thousands of banks worldwide to fail.

Sometimes adhering to a philosophical principle in economic defintiely does make sense, sometime it does not.

 

[Iriemon]

It sounds good when they say that they are to big to fail while continuing to strip the nation of it's wealth.

Just more crony capitalism. If your company sucks, get the government to help crush your competition.

That is the best argument for why this is a bad idea.

Of course, that is the best argument for allowing monopolies to exist, too.

And sometimes that argument definitely makes sense, and sometimes it definitely doesn't.

I don't honestly know if it makes sense in the case of the financial crises we're having, now, because I cannot honestly KNOW if AIG going down would have caused tens of thousands of banks worldwide to fail.

A lot of very smart, very knowledgeable people expressed very clearly a very real fear that exactly that could happen. I suppose you could imagine its one big conspiracy involving both the Bush and Obama administrations, but that seems unlikely to me.