Wish *I* Was Too Big to Fail!

by Sean





First was Bears Stearn. Then Fannie & Freddie. And now talk of propping up yet another screw up: Lehman’s. I realize there are broader repercussions should one of these big financial institutions fail, but the reality of apparently having few consequences for bad behavior is just begging to create all sorts of moral hazard.

When I screw up, I get slapped. And deservedly so.

However, when a really big corporation screws up, I – as well as my children, who will be paying for this crap long after we’re gone unless the government realizes that out-of-control debt stays exactly that – again get slapped.

The lesson? Either be very very big, or be very small. The middle class? Fuggit about ‘em… :evil:

  • I agree your argument while I would personally prefer small. Being big means, as you said, one should be strong enough or shameless enough.
  • Being in the middle class is indeed a pain on the neck. =) This is a funny with sense post. Thanks
  • I totally agree that this was just a low punch to middle class economy...

    But all the situation is so scary, because like millions of others I use my credit card a lot… lesson learned the hard way :S
  • This was a low punch for the economy, but we have to realize that even the middle-class had their share in the stocks. Maybe not as much as the big guys, but we did. I don't agree that the CEO's of the failed companies should be rewarded when "their" employees are getting laid off, but that's life.
    Let's look to the future and hopefully we can get out of this situation. It seems like this economy situation is contagious. The whole world is having a economy breakdown.
  • Yeah, this was a low punch to middle class economy.. I'm really scared about the situation, because like millions of people I use my credit card a lot... lesson learned the hard way :S
  • Yeah, this was a low punch to middle class economy.. I'm really scared about the situation, because like millions of people I use my credit card a lot... lesson learned the hard way :S

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  • Loved this post, I totally agree with you. I guess its a harsh reality that middle class people always end up as the ones suffering, and I guess its a common phenomenon of capitalism.
  • I very much agree with you. At least something is done right?
  • I feel that if the government gets a share of the company in return for funding or loans, they might be able to make a decent return on the tax payer's dollars.
  • In spite the bailout is passed, yet markets are not taking it. Still worldwide index going down. While Bush's says it will take time that bailout will effect positively, so be patient. Is there any discussion seen how it is going to impact in long term...
  • I love the post and i 100 % agree with your conclusion. Middle class always fight for their rights and at the end wont get any thing.
  • I couldn't agree more. I work for a smaller, regional bank, so this hits home for me. We compete with much larger players that have greater resources and take bigger risks. I feel that if Lehman, Bears Stearns or one of our direct competitors puts themselves in such a position, they should deal with the consequences.
  • It blows my mind that the government is using tax payer
    dollars ro bail out a public company. Who is next Lehman
    Brothers. Its interesting that in the bail out plan
    for fannnie and freddie they made the common and preferred stock basically penny stocks while the bond holders didnt lose a thing. Shouldnt they have to take it
    on the chin also before they receive govt money.
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