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> Is there a reason to bail those companies out of bankruptcy with tax payer dollars? If it's a company that would be almost certainly successful and profitabl
by Goladus 18y ago
> Is there a reason to bail those companies out of bankruptcy with tax payer dollars?
If it's a company that would be almost certainly successful and profitable but is caught in a bind because of the freeze in capital, then it can be a good idea. The resulting economic slowdown can cost taxpayers significantly.
- byrneseyeview 18y agoIf it's a company that would be almost certainly successful and profitable but is caught in a bind because of the freeze in capital... Then Warren Buffett will buy it out. If it's a company that is a bad, high-risk investment, its managers will skip asking big outside investors (there are plenty of hedge funds and private equity shops with spare cash on hand) and go straight to the government.
- Goladus 18y agoDo you have evidence that supports this assertion? Warren Buffet is not all-knowing or infinitely wealthy.