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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (38587)	11/13/2009 6:06:45 PM
From: TimF	Read Replies (1) \| Respond to of 71588

"or 3 - Don't give them any special favors or bail outs or support just becuase their big, drop "too big to fail", let them fail (at least most of the time)" But that begs the question. It isn't an example of the logical fallacy of begging the question. I suppose your using the term in the more informal sense of "causes the question to arise" or "makes me think of this question...", with the question in your case being "how do we solve the systemic risk problem". I don't think you do solve it, at least not without causing more harm in the attempt than the problem causes, but it can be addressed and to an extent limited. Not bailing out these companies, at least if its a policy that's strictly held to over the years, helps solve the problem. You eliminate the moral hazard that contributes to the problem. "Too big to fail" creates "we better get bigger, so if need be we can get bailouts and subsidies".