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I'm writing them off as dead. I'm now wondering what companies the Gov't will bail out / nationalize over the next 6 months.

• echelon 7y ago
  If the airlines and hotel industries are bailed out, do all existing shareholders get hosed (value go to nil)?
  • FartyMcFarter 7y ago
    They should get hosed. Company stocks are supposed to be a risky asset. If those businesses get bailed out that should be for their value to the world, not for the purpose of rescuing shareholders.
    • unlinked_dll 7y ago
      Any bail out should involve the government diluting shareholder equity. We need airlines sure. But we also need to punish their shortsightedness and get reimbursed for the trouble. They operate razor thin margins, but somehow used all their cash on buybacks while increasing how levered they were. That doesn't deserve saving. I'd go so far as to say that the government should take a 51% stake in return for their bailout money. I'm not saying nationalize the businesses or hold that controlling position indefinitely, but just for the time being to reorganize and guarantee the bailout money is used appropriately and executives fired for juicing their options with buybacks.
  • solotronics 7y ago
    When GM declared bankruptcy and got bailed out the stocks went to 0. My family lost a lot from that!
  • adeelk93 7y ago
    Depends, bailed out or taken over? For take overs (like Fannie and Freddie) value went quite close to nil