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Kapitalism
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this post was submitted on 26 Jun 2025
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Not just having capital, but got a hostage situation where their failure would collapse the economy therefore they are not allowed to fail and must be bailed out by the government they paid (often for far less) for earlier.
I don't buy into the "too big to fail" idea for individuals.
I really think it only applies to banks, mainly because they hold the money of common people. Anyone else should be allowed to fail. Probably the greatest financial policy fuckup of my life was bailing everybody out in 2008 and not holding anyone accountable for their actions. That gets back to risk and reward breaking down. Those companies should have been allowed to fail. The money, workers and demand for services don't disappear, they shift to more stable competitors.