http://www.ritholtz.com/blog/2008/12/the-fall-of-aig/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 13:15:01 +0000 hourly 1 http://wordpress.org/?v=3.0.5 http://www.ritholtz.com/blog/2008/12/the-fall-of-aig/comment-page-1/#comment-136818 charlie1939 Thu, 01 Jan 2009 18:46:19 +0000 http://www.ritholtz.com/blog/?p=14473#comment-136818 It seems to me that the issue of how a company becomes "too big to fail" and thus potentially becomes the financial ward of the government (me and you) needs to be addressed. I believe that some provision is needed to keep companies small enough so they CANNOT become "too big to fail" or there needs to be a way to break up those who do become "too big to fail". How does one evaluate the tipping point of "too big to fail" is then the question that needs to be answered... This latest financial debacle is proof positive that bigger is NOT necessarily better. The so-called cost efficiencies of bigness need to be balanced by the danger that a massive case of stupidity or excessive cleverness by a few may result in calamity for the many. It seems to me that the issue of how a company becomes “too big to fail” and thus potentially becomes the financial ward of the government (me and you) needs to be addressed. I believe that some provision is needed to keep companies small enough so they CANNOT become “too big to fail” or there needs to be a way to break up those who do become “too big to fail”. How does one evaluate the tipping point of “too big to fail” is then the question that needs to be answered…
This latest financial debacle is proof positive that bigger is NOT necessarily better. The so-called cost efficiencies of bigness need to be balanced by the danger that a massive case of stupidity or excessive cleverness by a few may result in calamity for the many.

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