Monday, November 24, 2008

Bailing Out CitiBank

Well it seems that we (as a nation) are bailing out another bank, this time to the tune of 325 billion dollars plus (in investment and loan guarantees). One of the justifications made for this huge outlay of taxpayer money is " they are to big to let fail".

It should now be crystal clear to all that mega corporations are a a huge risk to our nation. Once they gain a certain size they can no longer be held accountable to the rules of capitalism and put or economy at risk. We, as a nation should never allow companies to get to big to fail.

But, if this is the case, why did we (as in the US Government) approve the merger of Delta and NorthWest, and why does our government actively support the merger of Wells Fargo and Wachovia? Are we not creating other companies that are going to be to big to fail? And when they hit hard times will they not simply get in line for their taxpayer funded multi-billion dollar payout.


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