Friday, February 20, 2009

Not too big to fail

The Economist is out, spreading another week's worth of cheer. The leader article deals with the "collapse of manufacturing." (Hi there, Michigan!)

"The failure of a famous manufacturer like General Motors would be a severe blow to people’s faith in their own prospects when a lack of confidence is already dragging down the economy. So surely it is right to give industry special support? Despite manufacturing’s woes, the answer is no."

The article goes on (in that famously dispassionate style) to say that continued aid to flailing industries fails to address the fact that really, the industries are flailing because nobody wants what they're selling.

In essence, say the editors, consumers should decide who is and who is not too big to fail. Except for banks, of course.

(Note to self: In next life, see about being reincarnated as a banker. Not the sad, crybaby Dick Fuld kind - more the jet-off-to-Cabo-while-the-world-goes-to-hell Sandy Weill kind, or at the very least, one of those sensible North Dakota, no goofy loans dudes.)

Also, did you see this?

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