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When does "one institution investing in another become a bail out"? Also, why are "bail outs" bad at all?
by xkjkls 5y ago
When does "one institution investing in another become a bail out"? Also, why are "bail outs" bad at all?
- nytgop77 5y agobail outs are undermining the "invisible hand" . Bad decisions dont get penalized, so actors start evaluating decisions diferently.
- valuearb 5y agoThe other institutions buying the stricken institution at a large discount is the invisible hand, exactly. That discount is a huge penalty.
- xkjkls 5y agoThe bail outs being described are the invisible hand though. Government actions aren't being described, private companies engaging in private investments are. "Bail out" seems to be a catch all term for "struggling company I dislike received financing".