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that's why the government should never bail out shareholders. Bail out the company, sure - if the company is vital for "the system" (which airlines are, long-te
by tomp 7y ago
that's why the government should never bail out shareholders. Bail out the company, sure - if the company is vital for "the system" (which airlines are, long-term) - but only after bankruptcy, i.e. wiping out the shareholders.
- beefield 7y agoPreferably also some debt holders should be wiped out. Otherwise it becomes too cheap to leverage your company if you need to pay only risk-free rate on your debt.