I know this is hard to hear but if a company cannot survive it should fail. We are in the beginning of a new recession likely a depression. Printing money to bail out shareholders is not a priority (I'm a shareholder, I don't deserve it) we should protect the most vulnerable members of society, this should be our focus, instead we are trying to keep the uber rich from sliding down a tax bracket, or having to sell one of there 5 beach houses.
Contracts, contract can be re-negotiated even with unions, a company will benefit from having new leverage during this time and get much better terms in new contracts because the alternative is the company will stop doing business with the other party.
Debt, payments can be temporarily suspended, giveing a company time to catch up. The majority of companies that fail will have unbelievable amounts of debt.
Debt, can be restructured with better terms, lenders know the alternative is much worst.
Being bought.
Competitors, may choose to buy the company and fix the problems that management allowed or caused.
Investors, may chose to buy the company and fire the existing management then investors can hire industry experts that are not corrupt or incapable.
In all cases employes that work hard might have a shot of working for an newer version of the company if aloud to fail. but this new company would have learned from its mistakes and it won't be run by corrupt liars that line shareholders pockets (their pockets) while creating unacceptable moral hazard.
Failing should hurt. If a company is bailout what lesson will it learned.
Example: The 2009 Bailouts lead to bankers getting record bonuses while people became homeless from the bankers practices, none of the bankers involved went to jail and they were all have record years again in 2019. By the way share buybacks are awesome right? What? You borrowed money to buy the shares, is that even legal? (ethical?) Hold on now you feel sick? you might be Wu-Flu? and you somehow can't afford to pay your loans? How is that possible you said your healthy? What's that you need a bailout? why because it worked before.
Let them fail!!! Why not?
The benefits of bankruptcy.Contracts, contract can be re-negotiated even with unions, a company will benefit from having new leverage during this time and get much better terms in new contracts because the alternative is the company will stop doing business with the other party.
Debt, payments can be temporarily suspended, giveing a company time to catch up. The majority of companies that fail will have unbelievable amounts of debt.
Debt, can be restructured with better terms, lenders know the alternative is much worst.
Being bought.
Competitors, may choose to buy the company and fix the problems that management allowed or caused.
Investors, may chose to buy the company and fire the existing management then investors can hire industry experts that are not corrupt or incapable.
In all cases employes that work hard might have a shot of working for an newer version of the company if aloud to fail. but this new company would have learned from its mistakes and it won't be run by corrupt liars that line shareholders pockets (their pockets) while creating unacceptable moral hazard.
Why not Bailout?
If you bailout a company it will always plan to have that safety net, and once you bailout a company all companies will believe they are worthy of the same bailoutsFailing should hurt. If a company is bailout what lesson will it learned.
Example: The 2009 Bailouts lead to bankers getting record bonuses while people became homeless from the bankers practices, none of the bankers involved went to jail and they were all have record years again in 2019. By the way share buybacks are awesome right? What? You borrowed money to buy the shares, is that even legal? (ethical?) Hold on now you feel sick? you might be Wu-Flu? and you somehow can't afford to pay your loans? How is that possible you said your healthy? What's that you need a bailout? why because it worked before.
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