Keyword: corporatefailure

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  • The necessity of corporate failure (why government intervention leads to larger disasters)

    03/24/2010 6:35:54 AM PDT · by SeekAndFind · 182+ views
    Washington Times ^ | 03/24/2010 | Richard Rahn
    The expression "Failure is not an option" may be a motivator for very high-risk situations, but failure must always be an option for players in a properly functioning market economy. If you had a choice between buying a bond issued by a company considered "too big to fail" - which is an implicit government guarantee of its debt - would you buy that bond or one issued by a company without a government guarantee? Companies with government guarantees will be able to borrow at less cost, and, ultimately, their unfair competitive advantage will drive the companies without guarantees out of...