LnGrrrR
03-31-2009, 07:18 PM
Should there be a limit to bankruptcy?
Let's take the case of CDS. Many bets are made, and the person behind the majority of these bets suddenly can't pay out. Should he be able to file for bankruptcy? Is there a certain point where a company is too big to say they are unable to pay their debts?
What should be done to fix a case like this? Should we infringe upon liberty and only allow companies to take on a certain percentage of debt, even if (stupid) lenders are willing to lend it to them? Should we regulate all debt a company has at a federal or state level?
I'm not an economic wizard by any means; I haven't even taken statistics. What I'd like to know, is what do the people on this board think the best way to prevent that first domino from falling? And are the actions required to stop that first domino from falling worth implementing?
(Again, if I've made some grievous mistake/misunderstanding in my understanding/reasoning, by all means inform me.)
Let's take the case of CDS. Many bets are made, and the person behind the majority of these bets suddenly can't pay out. Should he be able to file for bankruptcy? Is there a certain point where a company is too big to say they are unable to pay their debts?
What should be done to fix a case like this? Should we infringe upon liberty and only allow companies to take on a certain percentage of debt, even if (stupid) lenders are willing to lend it to them? Should we regulate all debt a company has at a federal or state level?
I'm not an economic wizard by any means; I haven't even taken statistics. What I'd like to know, is what do the people on this board think the best way to prevent that first domino from falling? And are the actions required to stop that first domino from falling worth implementing?
(Again, if I've made some grievous mistake/misunderstanding in my understanding/reasoning, by all means inform me.)