If it's that necessary, we better look at decentralizing the critical industries so we don't have to do it again. Let the businesses fail, and let the government's only role be to agree to guarantee insurance claims that have to be liquidated as part of the end of insurance companies like AIG.
Bear with me for a second here (pun intended) A man was walking in the forrest when suddenly he was struck in the chest by an arrow. He laid there for hours dying until eventually being found by some nearby villagers. However instead of instantly tending to the mans wounds the villagers inquired how he came to be struck by this arrow.The injured man, barely hanging to life was unable to respond, so the villagers began to hypothesize, then debate, and then eventually argue … more
In the good old days, you might invest in something risky to increase your expected return, but you understood that you could lose everything. Fortunately, you now have an alternative -- hostage investing. Invest in something with a very high expected return, but something that is so core to the health of the overall economy that effectively, the entire country becomes hostage to the success of the investment. We've had some form of this for quite a while, … more