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Old 04-29-2020, 10:43 AM
 
Location: It's in the name!
6,289 posts, read 7,470,357 times
Reputation: 2850

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When the Fed started bailing out companies, they have created a worse market environment.

Take away bailouts and I guarantee businesses will run more efficiently and they would be able to better withstand economic downturns. When you lose your shirt and no one hands you a new one, you learn how to be more conservative.

Right now, companies are starting to plan on bailouts. Their lobbyists are at Congress with their hands out. Why? Because they learned that they can. And Congress will jump because some moron threatened them that if they don't hand over money, the world will end.

So, you have a Congress dolling out money based on the fears of even worse consequences if this company fails.

I mean these companies haven't even filed for BANKRUPTCY and they have their hands out. They are being bailed out even before going through the natural course of a business in distress. I mean at least go through the motions of filing for bankruptcy before having your hand out. They skip that whole part.

Imagine if employees got unemployment BEFORE losing their job. Or before applying for bankruptcy, you got a "grant" to help wipe out a chunk of that debt avoiding bankruptcy.

Unthinkable on an individual scale right?

Why are multi-billion dollar companies getting saved before even going through the bankruptcy process? Let them restructure through bankruptcy. Make it hurt so the next time, they won't be so loose with their cash.

I always read about countless companies buying up other companies for billions. Instead of preserving that cash for times like these. It is ridiculous. Yet we shame individuals for using their cash to buy iPhones and sneakers and being on welfare.

Aren't corporations doing the same thing?
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