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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (459302)2/25/2009 1:57:04 PM
From: tejek  Read Replies (1) | Respond to of 1574060
 
Also to the extent you consider companies too big to fail, and support them or don't let them fail because of that, you enable and incentivise the existence of too big to fail companies. Propping up big companies that would have failed directly means you have more big companies than you otherwise would have, and you encourage others to try to grow to, or merge to become, that big, even if the business move doesn't otherwise make sense.

Can you envision a time when a to big to fail company should be propped up?



To: TimF who wrote (459302)2/25/2009 2:14:30 PM
From: combjelly1 Recommendation  Read Replies (1) | Respond to of 1574060
 
The point is, they shouldn't be allowed to get too big to fail. Most of the time, they get that large through mergers and acquisitions. Not only is that dangerous for the overall economy, the track record for mergers isn't so hot. Often the resulting company does worse than the parts did.


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