Conversation

Jesse Powell
@jespow
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?
24
103
592
Jesse Powell
@jespow
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?
6
13
160
Jesse Powell
@jespow
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
6
3
56
This Tweet is from a suspended account. Learn more
Jesse Powell
@jespow
Replying to
@jeffsnguyen
If you manage to pull off the scam and get the bailout, you're golden. If you're too big to fail, you can go totally nuts, take super risky short-term bets because the downside will always and forevermore be absorbed by the taxpayer. Seems like a stock that can't lose.
7:14 AM · Mar 19, 2020Twitter Web App