Quote:
Originally Posted by KSig RC
Additionally, let's consider for a moment the message this sends going forward: if you are large enough that the fallout from your industry's collapse will have to be subsidized by the American taxpayer, there is no incentive to reduce risk or include controls to prevent massive collapse, each of which would ultimately eat into profits (providing further disincentive).
Do you really get one 'free' collapse before you're forced to insert controls to prevent MysticCat and epchick from having to pay your bills, sloughing through massive future debt because risk/reward ratios didn't need to care about the risk?
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This is one of my larger fears about all of this. It seems a lot of the trouble has come about through poor risk analysis, in terms of investments, mortgages, etc. Continuing a trend of bailouts across all industries would seem to shift the whole risk-benefit analysis.
Plus, I question the government's ability to step in and exercise management, even through a purportedly-savvy "car czar."