http://blog.sebastiengay.com/?p=45 Economics & Ideas Wed, 08 Sep 2010 18:44:42 +0000 http://wordpress.org/?v=2.6 http://blog.sebastiengay.com/?p=45#comment-20 ErvinTW Tue, 11 Nov 2008 22:33:15 +0000 http://blog.sebastiengay.com/?p=45#comment-20 Thanks! Nice post. Thanks! Nice post.

]]> http://blog.sebastiengay.com/?p=45#comment-19 Caitlin T. Mon, 10 Nov 2008 21:21:59 +0000 http://blog.sebastiengay.com/?p=45#comment-19 What seemed so damaging about the financial mess was that so many companies went down within a relatively short period of time, and that the collapse of one seemed to destabilize others. Is is possible that, while AIG by itself did not have the necessary share of the relevant market to jeopardize the public interest, the fact that these sorts of companies are so dependent on each other (because they are all trading derivatives, and because perceived value can affect the stock market) means that there's a sort of negative externality associated with one of the giants falling? Even beyond the employees of a financial firm, and the people who had money invested with them, the fact that such a giant company is falling could negatively impact other financial giants and their customers- so while the market share of a firm might not be monopolistic, it might still have a negative impact of that magnitude. What seemed so damaging about the financial mess was that so many companies went down within a relatively short period of time, and that the collapse of one seemed to destabilize others. Is is possible that, while AIG by itself did not have the necessary share of the relevant market to jeopardize the public interest, the fact that these sorts of companies are so dependent on each other (because they are all trading derivatives, and because perceived value can affect the stock market) means that there’s a sort of negative externality associated with one of the giants falling? Even beyond the employees of a financial firm, and the people who had money invested with them, the fact that such a giant company is falling could negatively impact other financial giants and their customers- so while the market share of a firm might not be monopolistic, it might still have a negative impact of that magnitude.

]]> http://blog.sebastiengay.com/?p=45#comment-18 Bailout » Blog Archive » Time For the Second Sherman Act · Sebastien Gay Sat, 08 Nov 2008 00:35:37 +0000 http://blog.sebastiengay.com/?p=45#comment-18 [...] The Emergency Economic Stabilization Act of 2008, more commonly referred to as the “ bailout plan,” has caused significant debate, suspicion, and anger among the American people. As giant companies cried out for help in the face of …[Continue Reading] [...] [...] The Emergency Economic Stabilization Act of 2008, more commonly referred to as the “ bailout plan,” has caused significant debate, suspicion, and anger among the American people. As giant companies cried out for help in the face of …[Continue Reading] [...]

]]>