Pensieri di un lunatico minore

Bigger is not better

During this financial crisis, Congress seems to have exactly two options that they refuse to deviate from:

1. Throw good money after bad
2. Encourage already gigantic companies to merge

The rationale that is used for both is “they’re too big to fail”, but I think we’ve seen with AIG that they’ll fail all-the-same, and the money is often little more than a longer fuse to allow the problem to grow even bigger. In the case of mergers, it seems that all they are doing is amplifying the situation. Too big to fail? Get bigger!

Idiots. Sometimes it’s necessary to let companies fail. That doesn’t mean that the government shouldn’t do something to cushion the impact on the economy and the downstream suppliers, etc., but simply going for “more of the same” is beyond stupid.

Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein

The solution is to allow the idiots on Wall Street who lost trillions making nothing and the idiots in Detroit who lost trillions making something to fail. Go after the management for fraud and incompetence and then use tax money, where appropriate, to rebuild the auto industry into something world-class. Detroit can build world-class cars, but choses to make a cheap buck usually and is saddled with fall-out from a broken healthcare system and the myopic idiocy reinforced by Wall Street.

Wall Street, on the other hand, is largely populated with useless people who in any sane society would have been shoved on the B-Ark and blasted into outer space along with the management consultants. Instead, we ask them to fix the problem they created? See quote above.