Re:Hazard pay in focus as essential workers earn less than t...
by jessaustin on Thursday July 02, 2020 @06:53PM
(#23719021)
The firms should have gone bankrupt. In that case, the government or any solvent entity could have benefited by purchasing the assets at market prices. That the firms did not go bankrupt, was a gift to shareholders from taxpayers.
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Re:Hazard pay in focus as essential workers earn less than t...
by koheripbal on Thursday July 02, 2020 @08:45PM
(#23719805)
This is a very uneducated point of view, that ignores the facts in my prior comment.
In a liquidity crunch, perfectly solvent and functional companies can go bankrupt. ...and indeed those that had balance sheets hopelessly underwater DID go bankrupt (ie Lehman Brothers, Merrill Lynch, as well as dozens of other smaller banks).
The fact that the government was able to extend LOANS to other banks is not a "gift" at all, because those loans were paid back with significant interest.
Do you understand, the taxpayer profited from the Wall Street loans of 2008.
Allowing solvent but illiquid companies to go bankrupt is needless economic destruction that serves zero purpose - and the fact that they survived despite having to pay back the gov't loans with interest is evidence of that.