Too Big-headed to Fail

After watching “Too Big to Fail”, it is clear to me that this notion still exists today. The last piece of information you are left with is that 10 banks hold 77% of all American assets. Wow. These banks own more of our tangible country than the government does. These banks cannot fail. With our nation’s money invested in keeping them alive, another downward spiral will cause the government to loose all the money they had to save the banks this time around. The banks failing in the film were too big because they were responsible for pensions, salaries, life’s investment, college funds, etc. If these banks went under, too many lives would be affected. But now, it’s not very different. All of those same concepts apply but now the government’s money is invested. The banks cannot fail, because then our economy fails. The government would be too low on cash.

An issue I also saw at the end of the film was that the banks are not the only entities that are too big to fail. Our government seems the same way. Only the government seems too bigheaded to fail. In the movie, Paulson “stuck to his guns” about not giving bailouts and instead placed government investments into the banks, just so that he could keep his word. We even see it today with other issues as our government is “taking a break”. People cannot compromise and find solutions because they are stubborn. Yes, it is important to stand up for what you believe, but when your position effects the lives of an entire country, sometimes you need to think of the best interests of the general good, not what you personally believe to be good.


Getting Bigger and Bigger

First I wanted to say that I have wanted to watch the movie “Too Big to Fail” for a while now, so I was happy to see that it was the topic of our blog post. Back in 2008, major banks and insurance companies AIG were considered “too big to fail.”  Since 2008, these firms have only become bigger with the Bank of America-Merrill Lynch, JP Morgan Chase-Bear Sterns, and Wells Fargo-Wachovia acquisitions. To me, obviously if they were considered too big to fail then, there are certainly still too big to fail now. In the film, Timothy Geithner explained to Hank Paulson that an option to save some of these banks is to work out an acquisition deal between two of them. Hank looked at him puzzled and said something along the lines of “you want to make the banks that we have considered too big to fail even bigger?” It is counterintuitive, but given the situation it was the best move. Although they are bigger, added regulation will help to oversee that the banks are working ethically. So even though the banks are getting bigger and bigger, they can be more easily monitored. With the added regulation, it would be almost impossible for a company to put itself into a position to fail.

Although the notion of too big to fail still exists today, it is definitely not as concerning to me presently because of the added regulation. The companies that are too big to fail are closely monitored and would be unable to fall into the same situation as 2008. The only thing that I worry about, that hopefully won’t happen in my lifetime, is that the same cycle of deregulation and corporate greed will occur.

Get Educated on The Origins of the Great Recession (TBTF Film, Blog 5)

The last BC, (Chelsea L, Kamal, Jordi, and Frank) invite you to Blgo prompt 5.

Watch “Too Big To Fail” and answer one of the following.

A) Choose a scene that resonates with you most and create a dialogue in which you have the opportunity to speak with that/those characters. What would you say to them?   Write this as dialogue would appear.  Be creative.
B)  If you or someone you know were personally affected by the failures of the companies featured in the film explain the impact these events had and still have on you today.
C) Do you think this notion of “too big to fail” still exists today based on the findings of the film?
Blogs due Friday at midnight, comments by Sunday.