Chris Dodd may be onto something. At some point, the gravy train has got to end. While his comments regarding too-big-to-fail were likely said with a financial product factory in mind, given who was saved over the past year and who wasn't, it's not just banks that should take notice.
I really would like to have the emphasis be that if you mess up, you're done. We're not going to provide that kind of perpetual guarantee that allows you to continue in existence. That 'too-big-to-fail' notion has to end," he said.
Yes, Senator. You're on the right track here. This sounds great, almost like the reemergence of that "anti-Jesus" economic system. But we need a test case to make sure you're serious. Let's see if we can find one.
How about General Motors? They've rid themselves of everything they don't want courtesy of their drive through bankruptcy and are back out their without the government training wheels. It seems hard to believe that they'd already be back in trouble, but don't underestimate these guys. Take, for example, their business plan.
"The last plan done was the viability plan going into bankruptcy," (CEO Fritz) Henderson said. "We haven't refreshed that."
Ok, so they haven't put pen to paper just yet but they've been out there using trial-and-error to figure out a way forward. Somebody there must be paying attention to that.
Mr. Whitacre has said he expects GM remain No.1 in the U.S. market and make money at the same time, Privately, Mr. Whitacre has expressed frustration over the company's reliance on profit-sapping sales incentives to generate momentum in its home market, according to people familiar with the matter.
While few people are actively cheering for GM to fail a second time, things are starting to look a bit dicey already Senator Dodd. You say you want too-big-to-fail to end. This could be your first chance to prove it.
Sen. Dodd says "too big to fail" must end [Reuters]