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View Diary: Taibbi, Naked Capitalism Re: Our Bipartisan "Fraudemocracy" (261 comments)

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  •  Break up the TBTF now (22+ / 0-)

    Until the TBTF institutions are broken up, the national crisis is ongoing and anyone in the position of making the change who does not demand the TBTF be broken up are in either in cahoots or out-to-lunch.

    Americans need to relentlessly keep moving through legislators until the right soldiers are in place to win this battle.

    Break them up now.

    The country will bleed to death until the Bush bank bailouts are countered and the perpetrators are dismantled.

    •  Here's how to stop ALL too big to exist entities: (4+ / 0-)
      Recommended by:
      tbetz, kck, greenearth, elwior

      I call it The MaxCap Rule and it can easily be applied to ALL supercorporations.

      Groucho Marx sings the new GOP motto: I'm Against It!

      by Jimdotz on Sun May 02, 2010 at 08:42:40 AM PDT

      [ Parent ]

      •  Well, you handle the TB probem but not TBTF IMO (3+ / 0-)
        Recommended by:
        greenearth, Jimdotz, JesseCW

        I'm not a finance expert but assuming the DOJ started to enforce antitrust laws, TooBig legislation would not be necessary. In the absence of antitrust enforcement (and legislation where there are protections like in health insurance) your idea seems to be a reasonable suggestion.

        But TooBig is a problem different from TBTF where in the latter case, the Failure part cascades beyond the company causing failures of other companies and potentially the entire economy of the nation or worse.

        So, no, I don't see that your suggestion can work in all cases. In a small but imaginable scenario, a company can not be TB yet because of the nature of their business, depth of corruption, and/or risk profile it does present a TBTF situation. Market capitalization is not, in itself, the problem or imo the essence of the problem to solve.  

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