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In the UK (but Italy as well), banks are routinely bailed out. Government takes over, absorbs liabilities, sells back to the market an unburdened company ready
by toyg 3y ago
In the UK (but Italy as well), banks are routinely bailed out. Government takes over, absorbs liabilities, sells back to the market an unburdened company ready to make new profits (and new debts).
Utilities are similarly bailed out, because what are you going to do, leave people without water and electricity?
If we have risk floors, we should also have profit ceilings.
- Aunche 3y agoIn the US utilities are subject to profit ceilings, and I'd be surprised if that wasn't the case in Europe. That's one of the reasons to classify something as a utility. By "energy companies", I'm assuming the top comment means fossil fuel companies.
- toyg 3y ago> In the US utilities are subject to profit ceilings, and I'd be surprised if that wasn't the case in Europe Be surprised, then. European regulators typically influence consumer prices, one way or the other, but profits are not capped.