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Shouldn't 'Too Big to Fail' Mean 'Too Big to Take Risks'?
In the wake of today's reports of a $2 billion loss (with more on the way) due to continuing speculative trading by JP Morgan, I began to wonder. If something is too big to fail -- as these major financial institutions were characterized during the early stages of the current depression -- aren't they also too big to take risks? I mean, doesn't the word 'risk' sort of imply the idea of possible failure?
Either they are not in fact too big to fail and we should allow them to collapse into their own cesspools or they should be extremely limited (i.e., regulated) as to what risks they can take. They shouldn't continue to be allowed to have it both ways.
Yeah, I know. They can't really avoid risk. It seems they can't even avoid huge risk because they are so greedy and badly mismanaged (as JP Morgan CEO Jim Dimon clearly said in his analysts' call today). But if that's the case, and if "too big to fail" is a real justification for taxpayer bailout and subsidy, then it seems to me we must draw one of two conclusions.
Either they are not in fact too big to fail and we should allow them to collapse into their own cesspools or they should be extremely limited (i.e., regulated) as to what risks they can take. They shouldn't continue to be allowed to have it both ways.
"You Don't Have to Believe in Climate Change to Solve It"
“You don’t have to believe in climate change to solve it,” says Lovins. “Everything we do to raise energy efficiency will make money, improve security and health, and stabilize climate.” - Amory Lovins, chairman of the Rocky Mountain Institute, from his new book, Reinventing Fire: Bold Business Solutions for the New Energy Era.
Lou Kavar, A Thoughtful Guy Worth Following
I've been following @LouKavar on Twitter for quite a while now and I've really begun to admire and respect his work. He had a post today pointing out quite clearly and cogently the cognitive dissonance that must result from any attempt to reconcile true Christianity and unregulated or lightly regulated free-enterprise capitalism. I cheered his position, re-tweeted his post and commented on his blog.
Like Lou, I don't live those principles nearly as fully or perfectly as I'd like but it is a constant undertaking on my part to do so. The fact that a plurality of folks polled in the survey he cites agree that capitalism and Christianity are fundamentally incompatible is quite encouraging to me as it was to Lou.
Check him out. Follow him on Twitter. And tell him I sent you!
