Too Big To Fail

Posted by Larry Miller on March 3, 2009 under Why | Be the First to Comment

AIG, we are told is too big to fail. Same with General Motors and a host of other corporations run by, at best, semi-competent but connected executives. They employ many but control boatloads of assets. Unfortunately not enough assets as they found themselves owing more than they could pay. The courts have a way to deal with these situations. It’s called bankruptcy. For you and me this is the way to resolve these negative situations.

These rules are for the little people. If you are big enough, rich enough or contribute enough, they somehow don’t apply. Your friends in government will be happy to take taxpayer money and give it to you. This has happened before and will happen again, and again, and again!

To keep up with this high end charity, our government goes deeper and deeper in debt. Our government is running up debts that are getting very close to exceeding it’s ability to pay. What happens when our government finds itself in this position? Is it too big to fail? Who will bail it out? Will they turn to us, the taxpayers as an unlimited source of funding once the rest of the world, which is running out of money itself at a breakneck pace, stops buying our paper?

The federal government is big. It’s ambitions are big… bigger than it or we can pay for. It is bigger than any of the corporations it tells us are too big to fail. Yet, what will happen when our government can’t pay it’s bills? Will it begin sending out IOUs al a California? Will it take more and more of our privately held assets to feed it’s voracious appetite? Is there anyone in Washington who knows what they are doing?

Despite all the propaganda, presidential speeches and friendly news reports to the contrary, one simple truth remains… no one is too big to fail… not AIG, not the federal government!