Unfortunately things are very opaque because of the said interconnectedness this article discusses.
> The most recent example I can think of is Melvin Capital (a few months ago). They were bailed out by Citadel.
Citadel buying a controlling interest in a fund that was historically very profitable and hit a huge a landmine, allowing them to buy at a huge discount, isn't really a "bailout" in the same way you're suggesting. Citadel didn't slide them a couple billion dollars under the table and say "don't worry about it, you get me next time".
> Citadel was bailed out by US tax payers in 2009 via AIG
This was, quite literally 12 years ago. These events are in no way related. Almost every bank was subsidized in 2008/2009. This isn't some unscrupulous "tax payer to hedge fund" hidden money pipeline.
Sure, but the context is that they were doing very poorly and needed liquidity to survive. They received it. That is being bailed out, no? The entire point I’m making is that they receive incredible assistance when very poor decisions are made.
> This was, quite literally 12 years ago. These events are in no way related. Almost every bank was subsidized in 2008/2009. This isn't some unscrupulous "tax payer to hedge fund" hidden money pipeline.
Yes, that is my point exactly. Many of these banks wouldn’t exist if it weren’t for the tax payer.
No, it is not. If they were given free money, or a loan with basically no interest, or some other sweetheart deal, that would be a bailout.
Someone taking advantage of your misfortunate in order to buy you at a discount as not a "bail out".
- an act of giving financial assistance to a failing business or economy to save it from collapse.
I personally wouldn't consider a zero-interest loan to be a bailout. If I buy a car and receive a no interest loan I wouldn't consider myself to be "bailed out", per your definition; nor would I consider receiving a dollar from a friend for a pack of gum to be a "bailout".
Read up on this before making claims that are completely opposite of the facts.
If you buy a car at a dealership and they take that money and donate it to ISIS, did you just support terrorism? No, the dealer did. You only bought a car.
The direct or indirectness of the money flow is unrelated to whether or not something is a bailout.
It happened, it's over. Citadel still exists as a company thanks to the AG bailout. That does not mean everything citadel ever buys is now a government bailout.
That's just silly.
Wait a second. Citadel is a fund manager. AIG is an insurance company. Neither are banks.
When somebody asks for an example of A, and you provide an example of B, they might assume you can't provide an example of A.