http://www.truth-out.org/playing-too-big-to-fail-card61193Playing the "Too Big To Fail" CardFriday 09 July 2010
by: William Rivers Pitt, t r u t h o u t | Op-Ed
The phrase "Too big to fail" entered the modern American lexicon with a terrible vengeance a couple of years ago, after billions of tax dollars were deployed as spit and mortar to hold up failing companies which, if they actually did fail, would have sent the US and the rest of the world spiraling into some kind of mega-ultra-super depression. That's what we were told, anyway, and it may well be true, but that hardly gets rid of the rancid taste the phrase leaves behind when spoken.
The very first sentence on the basic theory of capitalism is that nothing and no one can be too big to fail; the spirit of competition is the bedrock foundation of this particular economic theory, and competition means there will be winners, and there will be losers. There must be, if the formula is to have any integrity or validity, and so "Too big to fail" flies in the face of the whole concept by putting certain companies on an unassailable pedestal. If they lose, we all get crushed, so they can't be allowed to lose.
And yet here we are, surrounded by corporations that are allowed to lie, cheat and steal billions upon billions of dollars while savaging the environment and destroying the lives of millions of people. Surprising? Not if you have a brain in your head. Capitalism, as practiced in the United States and, unfortunately, throughout much of the world is, at bottom, a fraud and a sham. The cementing of "Too big to fail" into our public discourse is proof enough of that. Capitalism without meaningful regulation is a ticking time bomb, and that time bomb has gone off with both a terrible bang and a pathetic whimper.
As I watched the catastrophe of the Deepwater Horizon explosion continue to spread across the Gulf, it never occurred to me that BP might try to qualify for "Too big to fail" status, but as it turns out, we might be hearing that exact claim from them in pretty short order. Most Americans, upon hearing them attempt it, will probably be forced to overcome a desire to sack the first BP gas station they can find, but I have a strong idea that BP is going to trot the line out before too much more time passes.
The reason? Home:
The British government is drawing up contingency plans for a possible collapse of BP. This is amid mounting fears that the oil giant could be broken up or taken over in the wake of the Gulf of Mexico oil disaster. The talks, which are being led by officials at the Department for Business and the Treasury, reflect growing concern within Whitehall about the implications that a corporate failure of BP, formerly Britain's biggest company, would have on British interests domestically and around the world.
- snip -
BP already faces crippling costs from the accident but if the leak cannot be plugged by drilling a relief well, there is a growing threat of a takeover, with ExxonMobil and Royal Dutch Shell touted as the most likely candidates. One insider claimed that one possibility mooted was whether, under extreme circumstances, the government should consider intervening to protect BP, which was a nationalised company until 1987.
Intervening to protect BP? Try to contain your shock. "Too big to fail," baby. Works every time.
MORE
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
