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Do I get a bailout for my losses on the share market? What if I had bought shares on margin? Why does one class of investor get a bailout but not others? (Why
by denkmoon 6y ago
Do I get a bailout for my losses on the share market? What if I had bought shares on margin?
Why does one class of investor get a bailout but not others?
(Why bailout any investor? Risk is part of investment.)
- runawaybottle 6y agoThe moral hazard argument does not work in this case for a variety of reasons.
- javagram 6y agoThe S&P 500 and NASDAQ are both up year to date. The government has already taken actions, including injecting trillions of dollars into the economy, to bail out shareholders. > Why bailout any investor? Risk is part of investment. The damage caused by this pandemic is so rare it is less than a 1-in-100-years event (1918 pandemic killed millions, but businesses were typically shuttered only for weeks at most, not 6 months). Certainly bailouts for natural disasters are quite common in other respects. And if the government were to seize your property via eminent domain, they owe you money. Why shouldn’t they also in justice pay out if they order your business shuttered for a half a year?