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Dan A
DW News
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Comments by "Dan A" (@DanA-nl5uo) on "World's most indebted developer: Evergrande seeks to delay payments | DW News" video.
Too big to fail means too big to exist. No company should be allowed to grow to the size where failure endangers the economy at large.
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When you can't sell your assets they are not worth more than your debt they are not assets they are liabilities at that point.
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@ytcensorhack1876 wrong it is far more likely that a monopoly will crash the economy than all small companies in the same sector crashing the economy through bankruptcy. You definitely don't understand how diversity and redundancy impacts markets.
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@ytcensorhack1876 you fail to understand that governments lack the ability to regulate companies that are too big to fail. I never said the people working in the banking sector where evil so don't put words in my mouth. I said they have leverage over governments and lack moral hazard because of their ability to hold the economy hostage and force their losses onto society. In 2008 we saw 6 million Americans become homeless which wasn't considered too high a risk to the economy but the handful of banks that owned that debt where allowed to merge into bigger banks their debt forced off onto the government. The result has been that they are repeating the same bad loans to the corporate sector now. We see zombie corporations in 2020 at an all time high as the banking sector extends them credit safe in the knowledge that the economy can't allow the bigger banks to fail.
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@ytcensorhack1876 the goal post didn't really move it was a poorly chooses word. The fact remains the same a single large company that is able to hold the government hostage with no moral hazard because the government can't allow them to fail is far more dangerous than many smaller companies. The bailout of the financial sector in 2008 proved this fact. That you have connections in the sector who held the government hostage doesn't lend credibility to your argument.
4
@ytcensorhack1876 the issue is large banks have zero moral hazard because they can not be allowed to fail. It is also impossible for governments to regulate large industries that hold them hostage as proven the the total lack of regulations that resulted from the 2008 financial crisis. You fail to understand how power works in a caplistist society.
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@ramk2443 which is why too big to fail should mean too big to exist.
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@ytcensorhack1876 when you eliminate competition by having a handful of large companies it is functionality the same thing as a monopoly. But if you prefer oligopoly in place feel free to swap the word when you read my comment
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@ytcensorhack1876 lol the great depression that is your argument when greed crashed the stock market that isn't even close to a small business problem. Talk about bad faith arguments or a lack of understanding of history. How many small businesses are listed on the stock exchange?
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@ytcensorhack1876 the funny part is you have turned this into a discussion about the banking sector when I made a simple point about large businesses not banks in particular. You must feel guilty to make this about your sector. Have a nice day
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@ytcensorhack1876 funny that you think we need regulations but you are so upset that that could simply be regulations to set a market cap per company
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@ytcensorhack1876 you try to claim inside connections to the banking sector than get offended when I associate you with it. Priceless
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@ytcensorhack1876 we have monopoly laws already we broke up AT&T and the railroads. All you need to do is research how we have done it in the past to know how the laws will work if we choose to enforce them in the USA
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@ytcensorhack1876 lol your a clown
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@ytcensorhack1876 the fact that we have had a half century of exnoring the laws and merging companies back together doesn't change the fact that we know how the government is able to break up a company. The banks are different only in that they are directly dependent on the federal reserve. So the government has more transparency and control of their assets.
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@ytcensorhack1876 wow you really do like to beat a dead horse.
1