One of the more stupider suggestions I've seen in this whole mess. Of course, Mark Cuban doesn't care, he's got f*ck you money.
a) You're too big to be private, so you'll have to be taken over.
b) You'll need to socialize your losses, so we'll need to socialize your profits.
But bailing everyone out who's too big to fail just encourages them to get big.
So as the above poster said, we should have an almost automatic break up, or be nationalized law when ever anything gets "too big to fail"
By nationalize I mean the government would take over, and then slowly but steadily shut down operations.
This would allow smaller competitor to take up the slack.
It would also encourage companies to break up rather then be nationalized, it wouldn't be much of a choice.
The government got into the home-loan business under the pretense that it needed to encourage home ownership to promote community and stability. Then, it allowed flippers to go crazy speculating on home price increases, and effectively subsidized the process via Fannie and Freddie. If we had been taxing short-term home owners at a rate near 100% of their profits, it would have killed the flipping market dead, served to keep home prices in check, and encouraged the values that the agencies were designed to uphold.
(Problem is, of course, that this never could have happened -- for the last three years, the sole pillar of our economic growth has been home price increases. There's no way that congress or the White House would have allowed that pillar to be knocked down. Everyone is conveniently forgetting this today, but it's still true.)
Agreed.
And everyone I know is demanding something a little more intellectually rigorous and just than still more trickle down excrement.