16 May, 2010

The Weakest Link

Daniel Gross, writing in Newsweek, points out how Corporations and Governments adopt the zero-sum approach of allowing the weakest link to fail. Their refusal to help an entity that is "going down" may well come back and hit them with greater force.
He cites three examples :
a. Oil companies not coming together to handle the BP Oil Spill --- the repercussions on the rest of the industry, not BP alone, will be severe
b. Banks in 2008 not coming together to bail out their failing brethren -- now they suffer much greater public ridicule and oversight
c. The EU not putting it's act together on Greece -- other countries may well get dragged down as well.


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