this post was submitted on 19 Nov 2025
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Historically, a bailout by the US government has effectively been them buying shares in the company at bargain basement prices, and the government has actually made a tidy profit a few years later on many of them.
It's one of the few things they do where there isn't much of a downside.
Handing a fuck ton of wealth to the already wealthy and propping up market bubble behaviors feels like it might be a downside.
Selling a massive chunk of your company to the government isn't something you want to happen, and definitely isn't "handing money to the wealthy"
The existing shareholders definitely don't come out on top in a bailout.
Generally that's the idea (and true sometimes, even in USA).
But not all USA bailouts go like that (via equity) tho.
(I agree the gov buying equity at price 0 if only there is any sense in keeping the business, either as essential or that it can function on it's own.)
You've got dubious non-market loans & massive tax breaks too.
(I agree with this too, but the choice who to help & who not always seems paid for.)
It still keeps up the system that does that tho (at least) in sense that a business in non-essential infrastructure gets bailed out instead of going under & allowing "the free market competition" sort things - the thing they are always selling along with capitalism as an essential counterbalance/checks and balances to keep things fair.
How about the previous shareholders, who somehow miraculously predicted the market?
There's no upside to propping up such a destructive and exploitative system, though.
¯\_(ツ)_/¯
Well yes and no.
If the government wanted to redo the system entirely then that's great. Let the corps fail.
Unfortunately they are not looking to actually redo the system in any meaningful way. So letting many of these companies fail would cascade through the economy. Best result a difficult period and the market corrects. Wealth is slightly spread around. Worse case scenario people start starving (maybe revolution after that tho?)
We as regular people are put in a fucked position. Our leaders won't change the system, but if the system fails we starve. Unless we break the system ourselves, but then many of us get shot. But I guess that's usually how it goes
That is not how they happened in 08, however.
In how many of those bailouts the president was Mango Hitler in his current state of mind?
That is a valid point.
Bet