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Wouldn't the government be taking an ownership stake in the banks at the banks' reduced market cap? How does the taxpayer lose out in this scenario?
by wewtyflakes 3y ago
Wouldn't the government be taking an ownership stake in the banks at the banks' reduced market cap? How does the taxpayer lose out in this scenario?
- rcme 3y agoWhat if there isn't positive equity left in the banks? What about opportunity cost? The money for the bail out likely needs to be borrowed, what about inflation and anemic economic growth due to interest costs?
- wewtyflakes 3y agoGood point regarding potential negative equity, I hadn't considered that.