Monday, November 24, 2008

In Loco Parentis

"In loco parentis" means "in the place of a parent". In the place of a parent, our schools teach our children. In the place of a parent, our government provides nurture when we fail.

These days the government is being given responsibility to nurture failing corporations which it never had a chance to advise or manage. Like wayward lives fallen to the gutter, these corporations have eaten themselves alive with executive bonuses and credit obligations. Their stocks have fallen to reflect their value.

Would their loss be like human death? Will injecting cash plug the holes in their boats, or will it just keep them floating a little longer?

Cash comes at a price.

Citibank - too big to be allowed to fail - is going to receive government aid, says the New York Times today.

With no strings attached?

That's not good parenting.

Perhaps the group of corporations that are "too big to be allowed to fail" need to begin accepting government oversight now, before they fail?

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