Monday, March 16, 2009

Enron and Madoff - Update

Last week I proposed an extremely harsh punishment for intentionally driving your company down the toilet in a fraudulent way.

I brought this up several times last week in a 'would you vote for this law?' format. Unanimously people said that they would vote for a law like that if they got the chance. (unfortunately the court system would throw it out immediately).

But I've been thinking. Do you know what would work almost as good as rounding up the board of directors and burning their genitalia off with a blowtorch? Just stripping them of their assets. Maybe making them live in a midwest trailer park, subject to Cletus, and Myrna inviting them over for an afternoon of fried chicken and Nascar.

Oh, and also letting the companies that are failures - fail.

Citigroup, for example, should be allowed to fail if it can't make its bond payments. The shareholders should loose 100% of the value, and the existing bankruptcy laws should be activated to take this company completely apart. If the government steps in to do it in an orderly way fine. Tax dollars can be spent to hire the team that sells off the assets of Citigroup to other entities.

AIG? It should have to feel much more pain than it has been feeling.

In other words - I'm over the fascism. For now. Why can't we just enforce our existing laws?


Mark said...

I call this the Economic Death Penalty. And yes, rather than complaining about bonuses, we should just let insolvent companies fail--that's why they're insolvent!

Unfortunately, AIG insures the (wait for it) congressional pension fund. I wonder why they get bailed out?

Big Jay said...

I've also heard that AIG has cooperated extensively with the CIA and also certain military organizations dating back to WWII. (Quick, where do we get plans for the whatever building in Tokyo? - right, the issuer of the general liability policy! - AIG!)