Too big to fail is alive and well, alas. Indeed, several aspects of the legislative proposals sanction and codify the special status conferred on institutions that are seen as systemically important. Instead of reducing the number of behemoth firms assigned this special status, the bills would encourage smaller companies to grow large and dangerous so that they, too, could have a seat at the bailout buffet.
Gretchen Morgenson with a nice bit in the NYT about our toothless financial reform legislation
I hope no one is surprised at this. I've been blogging about corporatism for years and feel that this is just another brick in the wall of a return to a feudalistic society, where everyone works for a feud/corporation or the king/government.
Corporations are parahumans. They have the same rights as us but can't serve jail time and can potentially, very easily, have bottomless bank accounts for lawsuits.
If I had less scruples, I'd incorporate, take out as many loans as I could and then declare bankruptcy before paying any of them back. Why be honest when you can get loans, not pay them back and buy all sorts of cool stuff in the process?
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