Too Big To Fail, a Mortal Threat
Posted January 15, 2009
As our economy continues to decline and we have bailouts, loans, and guarantees that now total into the $trillions of dollars, let’s examine who is getting these funds and why. These funds are not going to the community banks, mom and pop stores, or other small enterprises. They are going to huge conglomerate corporations that have been deemed “too big to fail” and therefore represent a threat to the nation’s financial security. These conglomerates are the result of acquisitions and mergers over the last few decades that has had the effect of reducing competition and consumer choice. In the end this has the ultimate effect of raising prices which would by definition increase profit margins.
Also published in Market Oracle, January 2009