Bailouts are constructive under only one circumstance: when all shareholders lose a proportional stake in the company in exchange for financial intervention, wi

Bailouts are constructive under only one circumstance: when all shareholders lose a proportional stake in the company in exchange for financial intervention, with said stake going to the government/taxpayers as a public control/interest. As in, if a company receives a bailout equivalent to 50% of the company’s market value, all shareholders have their stake in the company decreased by 50%, permanently and irrevocably.