←back to thread

607 points givemeethekeys | 1 comments | | HN request time: 0.212s | source
Show context
jjcm ◴[] No.44990743[source]
In general I would rather the government take a stake in corporations they're bailing out. I think the "too big to fail" bailouts in the past should have come with more of a cost for the business, so on one hand I'm glad this is finally happening.

On the other hand, I wish it were a more formalized process rather than this politicized "our president made a deal to save america!" / "Intel is back and the government is investing BUY INTEL SHARES" media event. These things should follow a strict set of rules and processes so investors and companies know what to expect. These kind of deals should be boring, not a media event.

replies(25): >>44990768 #>>44990991 #>>44991008 #>>44991032 #>>44991056 #>>44991094 #>>44991125 #>>44991135 #>>44991142 #>>44991149 #>>44991156 #>>44991177 #>>44991295 #>>44991514 #>>44991586 #>>44991729 #>>44992050 #>>44992377 #>>44992551 #>>44992788 #>>44993446 #>>44993951 #>>44993969 #>>45000356 #>>45063597 #
ch4s3 ◴[] No.44991032[source]
I’d really rather we didn’t bail out these companies at all. It clearly creates moral hazard and makes it hard for better run companies to enter markets.
replies(7): >>44991093 #>>44991108 #>>44991331 #>>44991669 #>>44995067 #>>44996633 #>>45000367 #
bongodongobob ◴[] No.44991669[source]
Well as much as you don't like it, companies this big failing is terrible for the economy and in this case, national security to a degree. I'm of the thinking that when your company gets to a certain size we'd be well off nationalizing. Apple has more money than some nation states. Something that huge has the potential to affect global politics. There's lots of other reasons too, but this isn't like letting the corner store fail. The repercussions are huge. If we're going to bail out, the people should own some of it.
replies(6): >>44991720 #>>44992071 #>>44992203 #>>44993358 #>>44993612 #>>44993939 #
1. koliber ◴[] No.44993612[source]
When a company “fails” it does not disappear in a puff of smoke. It goes into bankruptcy and is sold in parts. Some of those parts are perfectly functioning divisions which will continue to function but they will be owned by someone else.

I would rather have Intel go bankrupt, sell profitable pieces to private buyers, and if there are any pieces that are not profitable but crucial to national interests, create a company out of them and have the government buy them. This way you are not propping up a dysfunctional behemoth.

Things must die in order for new better things to take their place. This applies to companies as well.