July
27th 2008
Posted under Economics
This blog post from Patrick Deenan is an old one from back in March in the aftermath of the Bear-Stearns bailout but it shows the inherit problem in the “too big to fail” argument in that being too big allows for such behavior that gets them in trouble knowing they’re too big to fail and shows why the interconnectivity of markets is not all that its cracked up to be.
roho on 27 Jul 2008 at 8:30 pm #
TOO Big to Fall is actually “Monopoly 101″……..and there is no greater enemy of Monopoly Based business than the “Boycot”. But, Americans have lost their grasp of the boycot.
Just as Jim Gilchrist started the “minuteman” movement inorder to confront illegal immigration, someone needs to rise that understands the mathmatecs of the Boycot. What if EXXON MOBILE, SHELL, TEXACO, etc. were placed in a lottery drawing, inorder to draw the first boycot?
Once the “Company” was drawn such as SHELL OIL, all Americans agreed that they could purchase gasoline anywhere they wished(Other than SHELL)until Shell complied to price demands!(How convienant that we would only be boycotting one at a time.)
After SHELL was preasured by stockholders to comply, we then bust EXXON MOBILE……..Americans have forgotten that “WE the consumer controls the market and not them!”………They simply manipulate us because they already function in a realm of “collectivism”.
Andrew T. on 28 Jul 2008 at 1:49 am #
Want an end to monopolies? Support free markets!
Andrew T. on 28 Jul 2008 at 3:34 am #
Go to URL http://www.lewrockwell.com/podcast/?p=episode&name=2008-07-27_006_tattoo_depression.mp3
A wonderful LRC podcast about how the government’s economic central planning makes regular Americans act more crazy and less conservative. During each economic boom, the church and synagogue pews empty, the skirts fly right up and the tattoos are everywhere, and people have higher time preferences, buying homes without fixed-rate mortgages in record numbers. Who needs to be “thrifty” and eat mom’s home-cooked meals when you can buy crap food from Arby’s or McDonald’s for a pittance, anyway? And…bust.
This subject is so profoundly interesting to me.
roho on 28 Jul 2008 at 1:07 pm #
Andrew T……….This is a proven fact that you link to. In our Judeo/Christian culture, “Hemlines and Debauchery” goes up during good times, and church attendance and moderation increases during bad times.
roho on 28 Jul 2008 at 9:26 pm #
BIG VS SMALL is not always understood in it’s applications to the business arena. For example:
A. A General Contractor is huge, having many sub-contractors working for him and receiving their income from his paying each for their efforts to each job. And General Contractors have subs(Small business owner)understanding that he can’t pay them untill he is paid.(Sounds resonable)…………….But, then the General Contractor realizes that the economy is shifting, his industry is stagnating, and he grabs all of the money and runs, inorder to regroup his future in a different direction. (The subs are still waiting on the money that has been stolen from them, eventually give up and file BK).
B. A retail giant like Walmart has the same relationship with manufacturers that place their products on Wally Worlds shelves, understanding that they will get paid 60-90 days out after Wally World receives payment.
C. The local poultry farmer has the same relationship with “Tyson Chicken” waiting on his rewards for product and services rendered for the past 60-90 days prior to the chicken industry taking a downturn?
BIGGER means telling the small businessman to “File Bankruptsy” while protecting your own stockholders simply because you can, sence you are BIG!
Free Trade starts at home with fair trade! Allowing “Globalism” to borrow the word “Free Trade” inorder to increase profits at the expense of U.S. Citizens is treason! Foreign nations have used our own laws against us such as Child Labor Laws, OSHA, Overtime Regulations, Polution Standards, etc, inorder to ATTRACT investors to their nation instead of ours.(All is not the Dems fault, and most Americans prefer a fair income in a safe invironment.)
Perhaps we have reached a point that another “OLIVER CROMWELL” should come to life?