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If banks cannot be permitted to fail, then their liabilities (as Martin Wolf of the Financial Times was musing last week) were perhaps always and only ever contingent liabilities of the public.
So, despite the fact that bailouts induce bad behavior, in this case a debtor nation will probably not be permitted to fail.
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But it's not just students who are permitted to fail.
Had the companies been permitted to fail or had they been administered under some form of managed bankruptcy the bonuses of the "failed" companies would never have been paid out, or if they had, the bankruptcy courts would have recaptured them as 'fraudulent transfers'.
She then opined that the big banks currently "have too much political power and too much money to be sufficiently capable of being managed, of being supervised and regulated, and of being permitted to fail," in a dazzling, rarely-seen-in-Washington demonstration of stringing sentences together that do not contain ideas that are intrinsically foolish.
The changes presented — that lawyers for the Civilian Complaint Review Board will now be permitted to prosecute cases of alleged police misconduct — fail to address the heart of the issue.
In January, they learned that they would not be permitted to participate in the playoffs because Mr. Mulcahy had failed to report four of the team's victories.
Perhaps, it said, students who fail tests but have mastered the material should be permitted to appeal.
This should not be permitted to happen.
Finance became the industry that was not allowed to fail but was permitted to enlarge and metastasize its behavior almost at will.
Under Chairman Bernanke's watch predatory mortgage lending flourished, and 'too big to fail' financial giants were permitted to engage in activities that put our nation's economy at risk.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com