alt Hacker NewsI am confused. In my country that is what a bailout means. How do you pay money to a company but not buy them? What is it that the state buys from the company, if not ownership, then? Or is it a gift? That would be insane.
Replies
nextaccountic • yesterday at 5:04 PM
It's a gift. No matter how you structure it - maybe subsidized loans, or anything like that - any bailout that doesn't transfer equity to the government is a gift
ranger_danger • yesterday at 9:17 PM
Are you perhaps confusing a bailout with a buyout?
> That would be insane.
The phrase is "that would be good for the economy".
It’s still the notion of trickle down economics at play.
But they did get a 3.5% return on their investment (but not comparable to the equivalent return in the market or even in bonds for the same duration).
That return was in turn used to justify the bailout, but the global macro effects weren’t accounted for: the banks’ fuckup caused misery all over the world for the best part of a decade.