Mike Solana

I know this is off-brand for me (and maybe LPs who follow me will think I’m stupid,) but Chamath’s argument (heard from @oracleofnj before today actually) that large corporations should go through structured bankruptcy instead of being bailed out is kind of compelling tbh.

Massive value has been destroyed in the economy. Someone will pay, the question is who. It would be inhumane and immoral to make the average American hold the bag. So in my mind, the question is allocation between businesses, banks, insurance, the investor class, and government.

If structured bankruptcy were done well, and with the interests of the public good in mind, it could be a good solution. We’d need to make sure that people can still have jobs, which means companies would need to continue to operate. But that’s pretty doable.

The only other consideration I wonder about is the retiring middle class, whose social security has already been rendered unreliable, now have a private retirement that won’t work either, if the funds that compose their 401(k)s lose value. Maybe there’s a spot solution there.

Anyway, not sure I know enough about all the Chapters in the book of bankruptcy to understand if this could work - and if a really stupid and selfish administration influencing bankruptcy resolution could fuck this all up anyway by making the wrong people responsible.