I’m concerned that our national bailout and stimulus processes are manipulating the ‘creative and destructive’ processes that are fundamental to dynamic free economies. It’s not just about protecting executives that ought not to be protected (although I think we need to have a new generation of executives that ‘think’ differently about economics)…..my concern is that we are losing the values that make America’s economy work.
The idea of ‘too large to fail’ is a breakdown of our economic ethic that allows useless, out-of-date, and misaligned economic institutions to fail….and be replaced with institutions with better qualities.
Eliot Spitzer (..that’s a familiar name?) wrote this interesting paper.