No. of Recommendations: 11
When I read the thread subject line, I was expecting something about oil companies. Isn't that what a "windfall profits tax" is all about - punishing companies for being too big and too successful?


I'm not in favor of a windfall profits tax but to me, that is an attempt to punish the overall profit level of an entire industry. I don't have any concern with the absolute profit level of the financial industry, my concern lies in the concentration of decision making in the pursuit of those profits. To borrow your terminology, we shouldn't be trying to punish firms that become big and successful, but we should ensure the industry in which they operate doesn't evolve to allow key players to become so large they can TEMPORARILY appear to be profitable and successful while in fact setting themselves and the economy up for failure. That may be a free market but it isn't an efficient one if it destroys more capital in the bust year than it created in the boom years.

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