Too Big Not To Fail
Apr 20th, 2009 | By Dawn R. Rivers | Category: Policy MattersSo, it’s not really the bailout money that is causing so many of them to have developed flaming hair issues.
The real problem is this concept of “too big to fail.” Few of us are Harvard economists but, as far as many of us are concerned, the phrase is arrant nonsense. There is no such thing.
Whatever the details of time and place, businesses fail because they are managed poorly. Objectively speaking, it does not make sense to invest in poorly managed companies that are poised to fail. Just ask Warren Buffet.