Bailouts

Imperial Capital
Banker69

Imperial Capital

Banker69
May 18, 2020 35 Comments

Should the government be permitted to bail out any companies? why or why not?

Airlines are the main example here but we saw it happen with financial firms previously.

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TOP 35 Comments
  • Yes because it’s not free money. The companies have to pay back with interest.
    May 18, 2020 1
    • Imperial Capital
      Banker69

      Imperial Capital

      Banker69
      OP
      Some of it is actually free though
      May 18, 2020
  • If you do bailout companies it will create morale hazard in the future.
    May 18, 2020 0
  • Yes I think it should be allowed in extreme cases. When companies are negligent and their own demise is bringing them down, then no. But during an unexpected thing like a pandemic, sure
    May 18, 2020 4
    • I'd agree with this too
      May 19, 2020
    • Google
      shefalee

      Go to company page Google

      shefalee
      I don’t agree with the airline bailouts. Overall, I m ok with the government using public money for strategically important outcomes but I think we’ve learnt many times over that the governments are not structurally independent enough or smart enough to do this well.
      May 26, 2020
  • Everyone should keep in mind. The government profited off the financial firm bailout.

    So should the government save companies and profit at the same time is your question.
    May 18, 2020 7
    • I'm torn on PPP. The government did want small businesses to fire people so it gave them cash to keep them on the payroll. My guess is if the rules were different most small business wouldn't have taken the money.

      Personally I would have preferred PPP didn't exist and the government gave very lenient unemployment benefits for those who were laid off or furloughed.
      Jun 7, 2020
    • The fact, indisputable, is that PPP is a government bailout. It’s money that can be legally used to pay for your employees, mortgage, and operating expenses. If you punished for those loans more severely (like equity or high interest rates) then you’d see a lot less taken.
      Jun 7, 2020
  • Imperial Capital
    sg02

    Imperial Capital

    sg02
    Definitely have to look at it on a case-by-case basis. If it’s something completely out of the Company’s control and been in compliance with everything according to the government, then a helping hand should be extended to those in dire need.

    Public good also comes into play. In 08, yes the banks mostly did it to themselves but teaching them all a lesson and letting them fail wouldn’t have helped the American public
    May 18, 2020 5