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Joined 10 months ago
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Cake day: August 23rd, 2023

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  • As oppose to giving free money to the same failed business?

    It’s because you (as a government of a private entity) dont bail out companies who’s business can’t work. Classic private equity funds buying distressed equity (or assets convertible to equity) take over management & set strategy, and overhaul the company or just wait a few years providing operating capital, then resell at a profit.

    USA government just gives free cash to giant companies that sometimes even operate at a profit already (but had like paid out to much dividends & aren’t liquid enough to sustain themselves for 2 bad months, lul). That’s just direct transfers of taxpayers money to individual not-as-much-taxpayers.


  • I think that’s exactly how outside USA works - much like any other player on the market, if you buy a company it’s yours, in this case taxpayers with dividends going to taxpayers (ie state budget). It can still be sold at any point, just not for free.

    Private companies/funds “bail out” companies all the time in exchange for various financial assets that can usually be converted into capital if the distressed company can’t hold up to the terms.