4 ms·
I think we should aim for _fairer_ government intervention. What if this time, the government invests enough cash in banks to keep them standing and then retain
by abeppu 3y ago
I think we should aim for _fairer_ government intervention.
What if this time, the government invests enough cash in banks to keep them standing and then retains ownership of a meaningful fraction of all participating banks? In however many years it takes for the banks to start paying dividends, a meaningful fraction of those are received by the government. That cash stream can be used to pay down debts or make green new deal investments, or fill a rainy-day fund for future crises. If share prices ever rise meanignfully, the government retains the ability to sell back to public markets.
An intervention can aim at stabilizing things today without being a _giveaway_.