In response to the current events taking place in the banking industry I want to take a look at a statement that has been presented to us:
“We cannot allow these banks and financial institutions to fail. They are too big to fail.”
Failure is a necessary process on the journey of success and the banking industry is no exception. Failure teaches us. Failure strengthens us. And Most importantly failure shows us ways NOT to do things. (see thomas edison)
By not allowing anyone to fail, whether its a massive government bailout or a soccer team that doesn’t keep score, we rob those involved of a valuable lesson and we do not allow them to learn and grow. We only postpone the inevitable problems.
We can uphold and patch up a broken method or strategy or we can fail, learn, and retry. The pain of failure is always temporary, but always makes us stronger permanently.
–Daniel Bernal
One of the best posts about this whole financial mess can be found on the Risks Digest (official title: “Forum on Risks to the Public in Computers and Related Systems”, by the ACM Committee on Computers and Public Policy): http://catless.ncl.ac.uk/Risks/25.35.html#subj5
Excerpt:
Their risk analysis looked like this:
Success: My company hands off the package before it blows up. My company makes a massive profit and I end up fabulously wealthy. (Other companies make massive losses and have to be bailed out by the government, but that is incidental).
Failure: My company ends up holding the package when it blows up. My company makes a massive loss and ends up having to be bailed out by the government. I end up extremely wealthy.
After careful consideration of all the risks and benefits, I decide to go ahead!
Good one Joe!
I’m torn between letting the banks fail, leveraging the need for the bailout with a few things the people need, and nationalizing the banking system.
The best would be to go after those that made a bundle in the mortgage industry and take away all their money and all the money anyone in their family has then tie them all with wet rawhide and stake them over a fire ant hill.
Seriously, there needs to be blame here attached to those responsible for this mess and they need to be stripped of their assets and locked away for life.
If we dont do this bailout there will be no more lending and the country will grind to a halt. Where do we get the money for the bailout? We are already deficit spending – that means we dont have the money. Hello?
I know the first thing we do is strip all those in Washington of their personal fortunes, that means milllionaires Bush, Bernake and the new millionaire heading the fed.