Take the fannie mae and mac "crisis." They aren't going to collapse (neither will Lehman's or Merrill Lynch but more on that later) because the tax payers are going to bail them out just like we bail out the airlines and railroads and anyone else who screws up. Why?
Because politicians are stupid, corrupt, weak-willed, short-sighted tossers. By bailing out companies that "are too big to allow to fail" even when they deserve too, you create an incentive for companies to tolerate risk in favor of size.
Companies will know that no matter how crazy the risks they take, they taxpayers will bail them out if anything goes wrong. This utterly corrupts the market, rotting it from the inside out, and will inevitably lead to disaster because there won't be an incentive for these companies to improve and as a result their debt and size will only continue to increase (to insure a government bailout if necessary) and they will actually fail more and more often.
Bad companies are supposed to fail and be reborn in more competent hands. Bad companies are a cancer on the economy and they need to die. When the government fearfully bails them out it keeps that cancer alive and increases the chance that it will one day do irreparable damage to the economy as a whole.
Not only should we let these companies fail, but we should embrace it and enjoy it. Their demise means our health - it means a stronger, richer, and more nimble America. It means more jobs, better jobs, and more opportunities.
Fannie Mae, Merrill Lynch, and Lehman Brothers are all towering monuments to incompetence, recklessness, poor planning, and bad management and are no better than the criminal Enron and Worldcom. They are cancer, poison, economic death. They are fear mongers, tempters, and parasites.
Let them die so that better companies run by better people can rise in their place.
Let them die to lighten our burden.
Let them die because they deserve it.
Let them die. Let them die. Let them die.
We deserve better then them. Let them die so that we can have it.
No comments:
Post a Comment