• Album@lemmy.ca
    link
    fedilink
    arrow-up
    147
    ·
    3 months ago

    Look I’m fine if the govt wants to say a particular corporation is too big to fail. But trying to let that company remain private is not how too big to fail works. If you want a bailout, the govt owns your company, and the govt is obliged to maintain ownership for as long as it’s deemed too big to fail…e.g. critical to national interests.

    • Wes4Humanity@lemm.ee
      link
      fedilink
      arrow-up
      24
      arrow-down
      1
      ·
      3 months ago

      Personally I think all publicly traded companies should be partly owned by the people… Like sure you can have an IPO, and still make a zillion dollars… But society automatically owns a large enough share that you have to check with us before doing anything drastic

    • MrMakabar@slrpnk.net
      link
      fedilink
      English
      arrow-up
      10
      arrow-down
      1
      ·
      3 months ago

      To big to fail should mean splitting up the company. At the very least when bailed out. Intresstingly the US actually made a profit bailing out banks in the 2008 crisis.

      • Aceticon@lemmy.world
        link
        fedilink
        arrow-up
        6
        ·
        edit-2
        3 months ago

        If I remember it correctly, that “profit” was nominal, i.e. without including the devaluation of that money due to Inflation, much less doing the proper investment accounting (as the Finance types do) were profit is a yield above a risk free investment (which, curiously, is normally Treasuries) and if it’s below that it’s not a good investment and beyond this the risk of losing your money also determines if the yield is worth.

        Pretty much by definition the yield wasn’t worth it in helping the banks at the interest rate the Government got, as why nobody else was willing to lend them the money at that interest rate.