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Submission + - Stallman's solution to "Too big to fail" ( 1

lcam writes: Richard Stallman's opinion appears on addressing the "Too big to fail" view that has recently caused large corporations to be bailed out by taxpayer dollars. His solution is elegant however needs some refining, for example his measure would create a required minimum "Return on Investment" scale that corporations need to follow to be viable, these types of metrics are very industry specific. Another issue is that many large corporations don't fail because they don't take unnecessary risk; companies like Intel, Lockhead, Wallmart are very large and have a very low chance of failure and yet Stallman would have them be split up as a result of excessive risks that banks and insurance companies where seen to have taken.

And lastly, in a global market, the United States has the distinct advantage over countries like Brasil because they don't have as much government regulation/meddling that cuts into their competitively. If Stallman's idea should be taken seriously, it should not undermine competitive in the global market, else multinationals may find it better to simply "move out" to a country that doesn't compromise their business models.

How can this genious idea be made better?

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Stallman's solution to "Too big to fail"

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  • Or we could just let bankruptcy take its source. "Too big to fail" never meant more than "has the politicians' money".

    The entire bailout was obviously hypocritial.

    Government tells fed banks (Fannie Mae and Freddie Mac) to get more poor peole into owning houses.

    Government leans on private banks to loan more to poor people, which they sorta have to do anyway because the fed banks are sucking up the mortgage market.

    Housing prices boom due to increased demand, and supply follows suit.

    People use all that artifi

Order and simplification are the first steps toward mastery of a subject -- the actual enemy is the unknown. -- Thomas Mann