China is winning AI race, Nvidia says, as OpenAI begs US gov't for bailout: THEN GOVERNMENT SHOULD OWN THEM

https://youtu.be/4odSW2lSUyI?si=I27xCnZ2BrbXVJfs


http://take10charles.blogspot.com/2014/05/for-people-owning-too-big-to-fail.html<



nday, May 4, 2014 For the People Owning the Too-Big-To-Fail Corporations <


By Charles Brown


It is important to point out that the Too-big-to-fail banks and corporations did in fact fail back in 2008; even though they were bailed out. The demand the Wall Street rulers made to Washington for a bailout was a confession that the whole financial system was insolvent. The USA's, We the People's, bailout brought the finance system back from the dead. Capitalism does not add up.


After 500 years, it ends up that capitalism is bankrupt and insolvent by its own generally accepted accounting principles.


The shadowy finance ministers who ordered President Bush to bailout Wall Street, said that certain financial institutions are "too big to fail". If they fail they will destroy the financial system, and so the federal government must save them in order to avoid total economic disaster for America and the world.


So, they were given trillions of dollars of what amounted to semi-gifts ( sort of "pay it back if you can at your own pace"; would that we could get such terms in loans from these same banks) , and the concept of "too-big-to-fail corporations" gained wide public awareness.


Although, there was not total collapse , the bank failures that did occur triggered the so-called Great Recession. We, the 99%, suffered and suffer still enormously from that recession as it resulted in all around economic distress for tens of millions of Americans over the last six years. These failures of the leading private institutions of our Economy, led to an excruciating economic Depression for the Many. Large swathes of the middle and "lower" classes suffer poverty, foreclosure, unemployment, and the many ways of misery, premature deaths, disease, divorce, crime, etc, that are generated by economic downturn , especially in a jobless recovery only for corporate profits and exploitation by the 1%


It is objectively true that this would have been worse for the 99% if the Too-big-to-fails had not been bailed out. So, it is not the case that these corporations should not have been bailed out, but that their Creditor, The People, should get more for their bailout money than they did: ownership of the big debtors.


To reiterate,_circa_ 2008, with the insolvency of financial institutions designated Too-big-to-fails by our nation's highest financial ministers ( in other words straight from the horse's mouth), We, the People, learned of or were reminded of a category of economic life that had not been so explicit in the national discourse. These Big Banks were bailed out and avoided bankruptcy with guarantees or assurances of anywhere from $16 to 29 trillion by the United States of America, because the national unelected , financial ministers declared that their failure would bring down the entire financial industry of the US and perhaps "the West". In other words, the insolvency of the Too-Big-To-Fail corporations was in fact the insolvency of the whole financial system. It was a confession that capitalism doesn't add up; it fundamentally cannot meet its own standard of moral hazard. Wall Street's debts exceeded its assets by a dozen or two trillion dollars, at that historic moment.


Any debtor of Wall Street creditors who reaches such a moment , must not be bailed out because of the danger of moral hazard. If we apply Wall Street's own standard to itself, the 2008 bailout represents the biggest moral hazard in history, pretty much. So, the principle of moral hazard is dead.


General Motors and Chrysler, two of our largest corporations, though evidently an order of magnitude smaller than the Wall Street Too-big-to-fails, were also bailed because they arer too big to fail without devastating economic impact.


. The bailed out Too-big-to-fails, owned and controlled and expropriated by the 1%, continue to live in fabulous luxury greater than any ruling class in history,

There is a long history of government bailout of corporations ( (History of U.S. Gov't Bailouts http://www.propublica.org/special/government-bailouts http://en.wikipedia.org/wiki/Too_big_to_fail)