Fed reinstates multi-trillion dollar bailout program for Wall Street

Re:Fed reinstates multi-trillion dollar bailout program for ... by toomuchtodo on Wednesday March 18, 2020 @11:58PM (#22624298)

Perhaps “die” is the wrong word. I prefer “nationalized and converted to financial utilities”. Shareholders? Gone! Existing management? Gone! Put adults in charge and have a relationship similar to the USPS or the Fed. Require an open platform so the APIs and underlying back office are solid but innovators can still get access to innovate (Europe mandated this via PSD2).

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Re:Fed reinstates multi-trillion dollar bailout program for ... by piiswrong on Thursday March 19, 2020 @12:00AM (#22624320)

But nationalizing private business is the symbol of communism! How dare you say such a thing!

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Re:Fed reinstates multi-trillion dollar bailout program for ... by manigandham on Thursday March 19, 2020 @12:45AM (#22624559)

Please give some examples where this has worked out well.

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Re:Fed reinstates multi-trillion dollar bailout program for ... by toomuchtodo on Thursday March 19, 2020 @12:01AM (#22624329)

Everyone is a socialist during a financial crisis.

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Re:Fed reinstates multi-trillion dollar bailout program for ... by piiswrong on Thursday March 19, 2020 @12:10AM (#22624387)

but after the crisis do you give it back to the shareholders and let them brood for the next crisis, or do you remain a socialist forever?

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Re:Fed reinstates multi-trillion dollar bailout program for ... by toomuchtodo on Thursday March 19, 2020 @12:13AM (#22624407)

Public goods must be protected. USPS does pretty well IMHO, as a similar example. No reason to recapitalize with public shareholders if you don’t need them. The Fed doesn’t have them (their shares are unique and essentially non transferable).

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Re:Fed reinstates multi-trillion dollar bailout program for ... by totalZero on Thursday March 19, 2020 @12:25AM (#22624464)

USPS lost $8.8 billion in fiscal year 2019.

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Re:Fed reinstates multi-trillion dollar bailout program for ... by toomuchtodo on Thursday March 19, 2020 @12:26AM (#22624478)

Public goods don’t have to break even or generate a profit. They still deliver my mail like clockwork, and we’ll cover any pension obligations with taxes if there’s a shortfall because of Congressional action (which is why USPS loses money, due to Congress having unreasonable pension funding requirements specifically for USPS).

If you require a bailout, you had your chance as a for profit concern. Entirely reasonable to run services at a loss as a government entity. Some services are simply expenses.

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Re:Fed reinstates multi-trillion dollar bailout program for ... by AnthonyMouse on Thursday March 19, 2020 @01:53AM (#22624910)

> They still deliver my mail like clockwork

"Makes the trains run on time" is a pretty weak argument when the alternative (e.g. UPS) has a demonstrated ability to do the same thing without losing billions of dollars.

> If you require a bailout, you had your chance as a for profit concern. Entirely reasonable to run services at a loss as a government entity.

Isn't this a double standard? A private entity loses money and requires a taxpayer bailout once, they've had their chance. A government entity loses money and requires a taxpayer bailout every year, cost of doing business?

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Re:Fed reinstates multi-trillion dollar bailout program for ... by toomuchtodo on Thursday March 19, 2020 @08:38AM (#22626850)

We have bailed banks and airlines out repeatedly, not once. UPS is not mandated to deliver to every address in the United States six days a week, such that USPS is.

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