That sums up the modern "too big to fail business plan." Do not examine risky leveraging, then fail, have the taxpayers bail you out, then continue the same behavior which ruined the company in the first place. Lather, rinse repeat. Another thing that bothers me about all of these lawsuits over failed investments is that the same people suing because they lost their money would be talking about the glory of the free market when times were good. For a supposedly capitalist economic system, we sure have a lot of elites who have used legalisms and legislation to prevent competition and loss.
Saturday, March 21, 2009
Washington Mutual, Boohoo
Sometimes you think that the financial firms cannot sink any lower and a story like this arrives hot off the presses. To sum up the lawsuit, Washington Mutual is suing the FDIC for selling them too cheaply when their banking business collapsed and for a "cryptic disallowance?!" This is a new spin on the fail for profit business, one which can be summed up by this business model:
That sums up the modern "too big to fail business plan." Do not examine risky leveraging, then fail, have the taxpayers bail you out, then continue the same behavior which ruined the company in the first place. Lather, rinse repeat. Another thing that bothers me about all of these lawsuits over failed investments is that the same people suing because they lost their money would be talking about the glory of the free market when times were good. For a supposedly capitalist economic system, we sure have a lot of elites who have used legalisms and legislation to prevent competition and loss.
That sums up the modern "too big to fail business plan." Do not examine risky leveraging, then fail, have the taxpayers bail you out, then continue the same behavior which ruined the company in the first place. Lather, rinse repeat. Another thing that bothers me about all of these lawsuits over failed investments is that the same people suing because they lost their money would be talking about the glory of the free market when times were good. For a supposedly capitalist economic system, we sure have a lot of elites who have used legalisms and legislation to prevent competition and loss.
Subscribe to:
Post Comments (Atom)
1 comment:
Dear Mr. Economist,
Hello- Good evening :-) If you were listening/watching to President Obama's Press Conference --- all I can say is perhpas he's reading your blog --- it echoed your "LATHER, RINSE, and REPEAT formula... lol
btw, I'll post your blog/link in my FB to give you credit as I've used your "LATHER, RINSE, and REPEAT" in my status update... I just find it cute and appropriate ... =~_^=
But make no mistake President Obama does NOT have my support in his stand with regards abortion, embryonic cell stem research, and anti-traditional family life.
Post a Comment