Tuesday, October 27, 2009

If an enterprise is too big to fail...

...and the government should therefore have to prop it up, then why not go the AT&T route of forced break-up? It worked for the telecommunications sector, and cost taxpayers nothing besides the cost of some bureaucrats' salaries.

Instead the US government spent taxpayer's money on propping up banks, keeping their shareholders whole. Private profit, public loss. And the so-called stimulus money is an equal misallocation of scarce resources.

Read this outstanding essay by David Einhorn, via John Mauldin's Outside the Box site.

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