alt Hacker NewsI mean sure, I agree with you in principal, but if not bailing out someone brings down the country or global economy? In a democracy that government is getting punished hard.
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There's no obvious reason to reward people for failing. If it's necessary for the economy to not collapse, nationalize it, either wiping the shareholders out or paying the current (presumably low) price, and sell it later.
The only reason this can happen is because of bailouts. When companies know they can be bailed out they will take far larger risks than they should. Instead governments should put policies and laws in place that prevent these types of problems from happening.
Well, in some ways that would mean the "running the government like a business" people would get their wish. They allowed the business to get so big, it failed, they are punished alongside the company for the failure.
If the failure of a private company can bring down the country the government should either break it up or take it over immediately as a national security issue. Too big to fail means too big to exist.