4 ms·
I would say the superpower is even greater. If you’re a mom and pop business, you can die — we will protect you so that like, your children’s children’s childre
by awinder 7y ago
I would say the superpower is even greater. If you’re a mom and pop business, you can die — we will protect you so that like, your children’s children’s children aren’t still paying your debts. And if you’re a small or mid cap company you can also die but the timelines are a little different. Large cap companies I think house a unique placement because they shouldn’t regularly be going to 0, and some level of backstopping may be strategically necessary. I think the reason for making that “design tradeoff” if you will, is that in return you gain a wider spectrum on investment risk tolerances that makes the market stronger. And there’s also great utility in the real-world consequences, I think the auto bailout proved you could make a good investment for the taxpayer, for workers, and for the shareholders. The real world is a different place from the textbook so anything dogmatic sets off alarm bells for me that we are maybe leaving money on the table out of a sense of a form of religiosity.