4 ms·
> The appropriate course of action for distressed companies that have engaged in share buybacks is that they should issue new shares to raise capital. If they c
by theandrewbailey 7y ago
> The appropriate course of action for distressed companies that have engaged in share buybacks is that they should issue new shares to raise capital. If they can’t raise enough capital through share issuance, they should enter Chapter 11 bankruptcy and be restructured. If they cannot pull through a restructuring, they should go out of business. That’s how capitalism works.
If Uncle Sam stopped bailing out corporations, I wonder how differently they would do business.
- mojo74 7y agoThe excuse that always seems to endlessly get rolled out is that these companies are 'too big to fail'. So they continuously get bailed in the US and the UK too whether it be banks or airlines.
- nikanj 7y agoToo big to fail should mean public utility. If we can't live without it, why is it privately owned?
- CommieDetector 7y agoCOMMUNIST DETECTED!!!
- pythonaut_16 7y agoIt should at least mean additional regulations. If you're getting a public bailout then the public has a greater interest in regulating how you conduct your business.
- grecy 7y agoGreater interest? By very definition the public owns the business, because they paid to keep it afloat. Absolutely the company should be publicly owned.
- jetrink 7y agoIt's telling that Spirit Airlines (among the least likely airlines to be bailed out) has 3x the cash on hand as American Airlines.
- stopyellingatme 7y agoCalls on Spirit, Puts on American ftw