For all these companies looking for bailouts, what prevents them from raising capital the old fashioned way? Issue more stock and sell it? Or, maybe sell all the stock you bought back with the rainy day fund you should have been holding on to?
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As a small fintech, we have capital requirements imposed on us. We have to leave millions of dollars with regulators just in case we blow up and they have to take on the cost of winding down our business. So, why is "2B2F critical infrastructure" allowed to run with 0 reserves?
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I get that if the government forces you to stop doing business while you continue to incur costs, some support can be expected if the government cares to keep the business alive. But that's not everybody. Lots are dying because of reduced demand and margins/reserves being too low
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Agreed. To ensure true capitalism, businesses (no matter how big). Should be allowed to fail. Maybe they wouldn’t swing so high on the trapeze without knowing there is a net below...
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For sure. If you mandate the closure of businesses, should you be required to assume all the expenses? What about if you mandate the closure of roads? Should you assume the expenses of all businesses and people on that road who are prevented from earning income?
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I’m hundred percent for it but who will invest in companies that don’t care to save in case shit goes down and prefer to buy back stocks ? As long as governments are doing bailouts, companies and investors will not care
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If you can get in cheap enough, and if you can get a large enough stake, you could potentially turn the company around. But, a hostile takeover type situation is not attractive to the incumbent failures. If they get the 2B2F bailout, the game is back on.
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