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jmull • today at 2:00 PM • 1 reply • view on HN

It's not just populist tilting at windmills.

There's an existing concept of and precedent for, "Too big to fail." The wikipedia article gets the idea across [0].

This creates an implied "insurance" program, tilting the risk profile toward being aggressive. Taking a moon shot isn't so scary when you think the government will probably step in if it blows up bad enough.

This fluffy, political statement is a message: don't count on it.

Perhaps it will give investors/executives a few thoughts on preparing to deal with a potential blowup themselves?

[0] https://en.wikipedia.org/wiki/Too_big_to_fail


Replies

someguydave • today at 2:33 PM

It’s populism. The minute a big chunk of the voters face real pain you will hear cries for bailouts