the Too-Big-To-Fail Corporations did in fact fail circa 2008. The demand the rulers on Wall Street made to Washington for a bailout was a confession that the whole financial system was insolvent. The bailout brought the Finance system back from the dead. Capitalism does not add up. After 500 years, it ends up that capitalism is bankrupt and insolvent by its own generally accepted accounting principles
the 99% suffered and suffers enormously from this failure and bankruptcy as the resulting depression consists in increased unemployment, these failures of the leading private institutions of our Economy, led to an excruciating economic depression for the many in the 99% or working masses of Americans;large swathes of the middle and lower classes suffer poverty, foreclosure, unemployment, and the many ways of misery, premature deaths, disease, divorce, crime, etc, that are generated by economic downturn , especially from jobless recovery of corporate profits and 1% exploitation.
It is objectively true that this would have been worse for the 99% if the toobigtofails had not been bailed out. So, it is not the case that these corporations should not have been bailed out, but that the Creditor, The People, should get more for their bailout money: ownership of the big debtors.
Circa 2008, with the insolvency of financial institutions designated Too-Big-To-Fail by our nation's highest financial ministers ( in other words straight from the horse's mouth), We, the People, learned of or were reminded of a category of economic life that had not been so explicit in the national discourse. These Big Banks were bailed out and avoided bankruptcy with anywhere from $16 to 29 trillion by the United States of America, because the national financial ministers declared that their failure would bring down the entire financial industry of the US and perhaps "the West". In other words, the insolvency of the Too-Big-To-Fail corporations was in fact the insolvency of the whole financial system. It was a confession that capitalism doesn't add up; it fundamentally cannot meet its own standard of moral hazard. Wall Streets debts exceeded its assets by a dozen or two trillion dollars, at that historic moment.
Any debtor of Wall Street creditors who reaches such a moment , must not be bailed out because of the danger of moral hazard. If we apply Wall Street's own standard to itself, the 2008 bailout represents the biggest moral hazard in history, pretty much. So, the principle of moral hazard is dead.
General Motors and Chrysler, two of our largest corporations, though evidently an order of magnitude smaller than the Wall Street Too-Big-To-Fails, were also bailed because they r too big to fail. . The bailed out Too-Big-to-Fails, owned and controlled and expropriated by the 1%, continue to live in fabulous luxury greater than any ruling class in history,
There is a long history of government bailout of corporations (
(History of U.S. Gov't Bailouts
http://www.propublica.org/special/government-bailouts
:http://en.wikipedia.org/wiki/Too_big_to_fail)
The State of Michigan and other states were bailedout of deficits by the Obama Stimulus plan.
What is to be done ?
We, the People, who bailed out the Economy, must have ownership and control of all Too-Big-To-Fail corporations. Private owners , who put private interests above public interests always, cannot be trusted with control and distribution of the products of the Economy's Too-Big-To-Fail Economic Units, because their failure does not impact the incomes of the 1% current owners, but only the lives of the masses of people. The failure of toobigtofails is dumped on the 99%, and avoided by the 1% who own them now. The 99% must own them, therefore.
We must reverse the current circumstance in which , essentially, the Too-Big-To-Fails own The People, as demonstrated by their ordering the Presidents and Congress to give them dozens of Trillions of dollars without their giving up ownership of themselves in exchange as would occur in any such transaction in the "free" market. The Too-Big-To-Fails still owe the People for the Bailout. We, The Creditors, are coming to Collect
...Law :requiring the Federal Reserve to report and list quarterly on all toobigtofail corporations, and initiate proceedings to take them over.
Law: One of the rationales for exploiting interests from debtors, recipients of loans, is that the creditor puts its money at risk. Since, the Too-Big-to-Fails will be bailed by the government if too many of their loans fail, their interest rates should be abated or negated, because they are not taking the risk they claim.
Retain federal ownership of General Motors and Chrysler. Take Federal ownership of JP Morgan, Citibank, Wells Fargo, Goldman Sachs, AIG and all Wall Street.
History of U.S. Gov’t Bailouts - ProPublica www.propublica.org