Tuesday, December 02, 2008

Too big to fail means too big to live

Another voice saying we need to fund a failing industry because GM is too big to fail ...
Toyota to cut bonuses 10% | Business | guardian.co.uk

... Earlier this week Carlos Ghosn, who brought Nissan back from the brink of bankruptcy when he became chief executive officer almost a decade ago, warned that car-makers faced massive job losses and urged governments in the US, Japan and Europe to come to their rescue.

'It is important for governments to finance industries that employ a lot of workers,' he told a symposium in Tokyo. 'The credit crunch has made it difficult to finance day-to-day operations.

'Job destruction will be massive in those countries that do not rapidly help the auto sector to finance itself. It will not be seen immediately, but in a few years.'...
Just like Citigroup was too big to fail.

It has occurred to many, many, people that "too big to fail" should also mean "too big to live".

Maybe the price of bailing out these industries should be to break them up into smaller pieces that aren't too big to fail.

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