STFU, Corporatists

The Dodd-Frank Wall Street reform law, signed into law last summer, gives the FDIC authority to unwind a company that is considered systematically important. The government hasn’t had a plan to wind down “too big to fail” firms such as Lehman Bros., which filed for bankruptcy in September 2008.

The law gives priority to debts incurred after the government seizes a company.

Remember… The government paying down debt = your taxes paying down debt.

U.S. regulators Tuesday proposed a new rule to pay creditors of faltering financial companies that the government seizes and dismantles, to avoid a threat to the broader economy.

This is a horrible cycle of stealing from Peter to pay Paul.  Basically, we’re going to take an already deficit-ridden coercive system of taxation, and plunge it further into debt, which harms the economy as a whole, so that businesses that keep tumbling toward the brink of failure can be saved, again and again.

  1. stfucorporatists posted this