Tuesday, February 17, 2009

Zombie Banks

Heard this on the drive to the office this morning. I'm confused.

http://www.npr.org/templates/story/story.php?storyId=100762999

Not very long ago (weeks? not more than a couple of months) it was unthinkable that humongous corporations could be allowed to self-destruct under the weight of their own greed and mismanagement. Now there are voices piping up pointing out (rightly, for all I know) that these dinosaurs are sucking up rescue resources without contributing to the economy, and should be "dismantled" and "restructured." Perhaps. I tend to think that organizations that can't or don't survive on their own ought to suffer the consequences, and yeah it's a pity all those shareholders will lost their stake, and all those people will be out of work, but in the latter case it'll only be temporary, and why should they be more entitled to the job they want than I am to mine (i.e. "not") and in the case of shareholders, well those are mostly institutions not widows & orphans, and where the institutions are holding funds invested by people representing the widows & orphans, I dunno what to say but when the shit hits the fan, everyone gets dirty.

The solution to the state of the world economic disaster is fundamental reconstruction, not constant propping up of the crummy policies, practices and institutions that fell apart on us. Inevitably, IMO.

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