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"Bankruptcy of a large corporation does not leave a crater behind. Bankruptcy is reorganisation and protection, not liquidation. The point of bankruptcy is precisely to keep the business going.... Bailouts are not bailouts to 'the corporation,' which isn't a thing.... Bailouts are bailouts to stockholders, bondholders, creditors, unions....
"If the government does bail out [these] stockholders and creditors, it makes a lot of sense not to let them take on so much debt again. [Stock] repurchases per se are not the villain, as companies can borrow and pay big dividends. We might ... start by finally, finally, removing these huge subsidies to debt."
~ John Cochrane, from his post 'Bailouts v Bankruptcy'
Tuesday 31 March 2020
"Bankruptcy of a large corporation does not leave a crater behind. The point of bankruptcy is precisely to keep the business going. Bailouts are not bailouts to 'the corporation' .... Bailouts are bailouts to stockholders, bondholders, creditors, unions." #QotD
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Funny isn't it,that after a booming bull market for years,rockstar economy...it only takes a week for corporations to expect taxpayer handouts.
Multinational companies refusing to pay rents due,and trimming the work force and pay packets.
Fletchers a good example.Up to 70% reduction in pay for workers and managers cop 15%.
The farcical free market exposed AGAIN!
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