Too Big to Fail


I personally hate the excuse that a company is too big to fail.  I’ll admit, some companies are so large and such major players in so many different industries that it would be very bad for our economy if they were to experience utter collapse.  But it almost seems that these super corporations have more power than the federal government.  If these companies are so vital to the well-being of our economy then they can operate relative certain that the government won’t interfere with their risky business practices.

That attitude is not good for our economy, and it is partially responsible for the current economic depression in which we currently find ourselves.  Banks, stock brokers, and insurance companies got risky with our money because the government wasn’t regulating their industries and they ended up losing a lot of our money.  Then when it came time for them to face the consequences of their poor judgement, they claimed that they were too big to fail and took more of our money via government bailouts.

Now we are in a bit of a pickle.  We can’t let these companies fall on their faces but the current system does not appear to be working either.  We could break up these “too big to fail” companies and put stricter regulations into place to prevent companies from getting that big in the future.  I don’t have a background in either economics or politics so I don’t know how difficult that would be or if it is even feasible but something must be done because these corporations are hurting the economy as much as they are helping it.

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One Response to Too Big to Fail

  1. mnickels says:

    I agree with what you said on companies using the excuse that they are “too big to fail.” Having that kind of mindset does mess with our economy and I think their own industry. Thinking that your company is too big to fail can have a devastating effect when your business goes down the drain or has to be bailed out by the government. If you think you won’t fail, you might not see the flaws in your business or you may ignore the faulty accounting practices and think they will save you money at the end of the year or help you keep your AAA rating. This kind of thinking, I believe, can damage a business and maybe even set them up for failure. It is one thing to be confident in your company and believe in one what you are doing, but to think that your company will never fail or is too big to fail, that is taking things to another level and setting yourself up for some flaws and failures, I think, in the future.

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