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I suppose they'll be prohibited from ever distributing dividends too, but then I wonder why anybody would buy the stock.
by tedunangst 7y ago
I suppose they'll be prohibited from ever distributing dividends too, but then I wonder why anybody would buy the stock.
- teruakohatu 7y agoWould anyone buy the stock if they knew that when the next Black Swan or recession happens there would be no possibility of a bail out? Or are bailouts just welfare for investors (with a happy coincidence of keeping voters employed in bad companies)? The last time Air New Zealand was bailed out the government in fact bought them out (over 50%). I think governments should have buy outs not bail out. This way any future dividends or buybacks will benefit the tax payer at the expense of existing investors.
- adrr 7y agoBuyouts make more sense and allows the government to recoup the money. Example being the Great Recession an the AIG take over by the US government.