Former Gov. Eliot Spitzer, who resigned in March amid revelations he had purchased the services of prostitutes, debuts his first financial column today on Slate.com. “Too Big Not To Fail: We need to stop using the bailout to rebuild gigantic financial institutions,” reads the headline on the 1,100-word column.
Spitzer sticks to the economy in his column, which is No. 1 on the site’s “Most Read” and “Most E-mailed” lists. The bailouts “may merely perpetuate a fundamentally flawed status quo,” he writes. “So far, at least, we are simply rebuilding the same edifice that just collapsed.”
He goes on to say that a better approach “would focus not just on rescuing pre-existing financial institutions but, instead, on creating a structure for more contained and competitive ones.”
The country would be better off returning to “an era of vibrant competition among multiple, smaller entities—none so essential to the entire structure that it is indispensible,” he writes.
The trillions of dollars being spent to rescue the institutions might have otherwise been available to educate the next generation, fund research and development efforts, restructure the “bloated” health-care sector, or build infrastructure, according to Spitzer.