A Better Idea: Let GM, AIG, Citigroup Fail

Odysseas Papadimitriou is founder and chief executive officer of Evolution Finance, the parent company of Wallet Blog and Card Hub, an online marketplace for credit cards.

The recession, the longest in more than half a century, has starred companies that are so vast and influential that their failure endangers the U.S. economy. General Motors(GMGMQ Quote), Chrysler, AIG(AIG Quote), Citibank(C Quote), Bank of America(BAC Quote) and others are now all too familiar to most Americans. (GM has emerged from bankruptcy protection, according to reports today.)

To prevent systemic economic collapse, the government has resorted to bailouts, essentially changing the rules of the game. What's clear is that the benefits reaped by the economy in allowing the existence of these financial giants is nothing compared with the damage caused by their downfall. Companies that are too big to fail should simply not be allowed to exist. ...