Thursday, September 18, 2008

All Is Explained

Well, not "all," really. What am I, a prophet? But at least with regards to the Wall Street meltdown, this post over that the New York Times Freakonomics blog answers several questions. It's fairly basic economic stuff, tho', no real political analysis.

As for politics . . .. As I said the other day, I am not an economist. I took a couple of classes in college and managed to make it out alive, so I consider that a moral victory (they don't call it the "dismal science" for nothing). But in recent weeks we've heard a lot about whether a floundering company is or isn't "too big to fail," meaning that a company is so critical to the American and/or global economy that the government can't allow it to melt down.

I don't know enough about the details to know whether any of the recent bailouts were really necessary under that theory, but I have come to a realization - the next time some company gets "too big to fail," saddle up the anti-trust ponies and break it up. Anything that gets that big and has that much influence can't be a good thing.

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