by Karl Denninger
Market-Ticker.org
There were some who looked at this article — and its companion on the -NAD side talking about how we must calibrate punishment, specifically capital punishment, in order to deter crime.
At its core is a simple yet utterly ridiculous and intentional misapplication of long-standing law that in fact dates to the first incorporations.
C, Sub-S and LLCs are all formed on the premise of limited liability. A proprietorship or general partnership affords no such protection; all the principals remain jointly liable for the acts of the entity. That is, if the firm screws someone and that person sues the partner’s personal assets can be attached and seized.
Nowhere in the principle of limited liability, however, does such extend to criminal law.
It never has.