
How to Think About Corporate Bailouts Correctly - smacktoward
https://www.peoplespolicyproject.org/2020/03/23/how-to-think-about-corporate-bailouts-correctly/
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jannotti
I think this does a good job of presenting the financial issues properly
without too much rhetoric. The most important point was that if these
corporations need a bailout to survive, then the stockholders have already
lost their money. The bailout preserves the corporation, for the good of the
country and/or workers, not to prevent stock holders from seeing losses.

One place where I am in less agreement is when the authors says that the
government should be paid back and retain its share of ownership (I think
that's what the article implied). The author wants this to be an equity
investment. Those are not paid back. Any dividend would be shared in
proportion to ownership (previous stockholders may have been quite diluted, of
course).

And then my final question is, should the government retain equity
indefinitely? Might we imagine paying out shares to citizens?

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sharemywin
The only thing I would also argue is the existing management shouldn't get
richer in the process.

