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Correct, the government should generally not hand out stimulus as free money. Forcing the company to issue new stock and sell it to the government at market rat
by dodobirdlord 6y ago
Correct, the government should generally not hand out stimulus as free money. Forcing the company to issue new stock and sell it to the government at market rate achieves all of the positive effects of stimulus, while also eliminating the perverse incentive to operate with no safety margin in the hopes of a bailout.