Bail, Dude, Bail

Great Logic:

A reasonable reading of the recent [federal] bailouts [AIG,etc] suggests a simple rule: if a firm is on the verge of collapse and its ties to the financial system will lead to a cascade of chaos, the firm will be saved. A bankruptcy will be permitted only if the failure can be contained.
[nytimes]

Great Oversight: a how-to primer on how to run a financial company: do everything you can to make sure your firms collapse will lead to the greatest possible collateral damage, and youre off the hook. For extra credit, run your personal finances like the CEO of a multinational. Interesting lesson on social web2.0 highly networked and inextractable financial ‘derivatives’… update: or, Washington Mutual.