{"id":3493,"date":"2009-04-14T16:40:30","date_gmt":"2009-04-14T20:40:30","guid":{"rendered":"http:\/\/www.prosebeforehos.com\/?p=3493"},"modified":"2013-04-21T18:11:37","modified_gmt":"2013-04-21T22:11:37","slug":"what-does-too-big-to-fail-mean","status":"publish","type":"post","link":"https:\/\/www.prosebeforehos.com\/progressive-economics\/04\/14\/what-does-too-big-to-fail-mean\/","title":{"rendered":"What Does &#8220;Too Big To Fail&#8221; Mean?"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"800\" height=\"600\" src=\"https:\/\/www.youtube.com\/embed\/YRZ_bL37-qk?feature=oembed\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>&#8220;What do we do? Exactly the opposite. We forget about the debt, let it explode. We reduce interest rates to zero to stimulate the economy. We pour money into the economy to get even bigger debts. We don\u2019t privatize; we nationalize, except we don\u2019t call it nationalization. We give it some other name, like \u201cbailout\u201d or something. It\u2019s essentially nationalization without control. So we pour money into the institutions. We lectured the third world that they must accept free trade, though we accept protectionism.<\/p>\n<p>Take the \u201ctoo big to fail\u201d principle, which the House committee is discussing today. But what does \u201ctoo big to fail\u201d mean? \u201cToo big to fail\u201d is an insurance policy. It\u2019s a government insurance policy. Government means the public pays, which says, \u201cYou can take huge risks and make plenty of profit, and if anything goes wrong, we\u2019ll bail you out.\u201d That\u2019s \u201ctoo big to fail.\u201d Well, that\u2019s extreme protectionism. It gives US corporations like Citigroup an enormous advantage over others, like any other kind of protection.<\/p>\n<p>But we don\u2019t allow the third world to do that. I mean, they\u2019ve got to privatize, so that we can pick up their assets. Now, these are happening side by side. Now, here\u2019s the instructions for you, the poor people; here\u2019s the policies for us, the rich people. Exactly the opposite. Is there any reason to think the IMF is going to change it?&#8221;<\/p>\n<p><strong>See Also:<\/strong> <a href=\"http:\/\/delong.typepad.com\/sdj\/2009\/04\/three-possible-financial-narratives-for-the-obama-administration.html\">Three Possible Financial Narratives for the Obama Administration<\/a>, <a href=\"http:\/\/rodrik.typepad.com\/dani_rodriks_weblog\/2009\/04\/ideas-and-interests.html\">Ideas and interests<\/a>, <a href=\"http:\/\/www.nakedcapitalism.com\/2009\/04\/goldman-cfo-viniar-mystified-by-probes.html\">Goldman CFO Viniar &#8220;Mystified&#8221; by Probes into Relationship with AIG<\/a>, <a href=\"http:\/\/www.ritholtz.com\/blog\/2009\/04\/taxpayer-funded-gs-profits\/\">Taxpayer Funded GS Profits<\/a>, <a href=\"http:\/\/andrewsullivan.theatlantic.com\/the_daily_dish\/2009\/04\/punishing-the-successful-update.html\">Punishing The Successful Update<\/a>, <a href=\"http:\/\/meganmcardle.theatlantic.com\/archives\/2009\/04\/democracy_and_capitalism.php\">Democracy and Capitalism<\/a>, <a href=\"http:\/\/pumasunleashed.wordpress.com\/2009\/04\/14\/the-quiet-coup\/\">The Quiet Coup<\/a>, <a href=\"http:\/\/d-day.blogspot.com\/2009\/04\/nationalization-argument.html\">The Nationalization Argument<\/a>, <a href=\"http:\/\/asianbadger.wordpress.com\/2009\/04\/14\/us-taxpayers-raped-again\/\">U.S. Taxpayers Raped Again<\/a>, and <a href=\"http:\/\/themoderatevoice.com\/28992\/the-banks-new-business-model\/\">The Banks\u2019 New Business Model<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;What do we do? Exactly the opposite. We forget about the debt, let it explode. We reduce interest rates to zero to stimulate the economy. We pour money into the economy to get even bigger debts. We don\u2019t privatize; we nationalize, except we don\u2019t call it nationalization. We give it some other name, like \u201cbailout\u201d [&hellip;]<\/p>\n","protected":false},"author":531,"featured_media":10643,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[220],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Explaining What &quot;Too Big To Fail Means&quot; with Noam Chomsky<\/title>\n<meta name=\"description\" content=\"Noam Chomsky explains to Amy Goodman of Democracy Now the current economic agenda of the Obama administration, corporate power, and what too big to fail means\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.prosebeforehos.com\/progressive-economics\/04\/14\/what-does-too-big-to-fail-mean\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Explaining What &quot;Too Big To Fail Means&quot; 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