Re:Japan building 1GW, $21bn solar power station in space
by anamax on Wednesday September 02, 2009 @02:25PM
(#800791)
We've also increased the value of "owning" congresscritters. Before, they were good for arranging contracts and screwing competitors. Now they're also a line of credit.
Re:Japan building 1GW, $21bn solar power station in space
by Retric on Wednesday September 02, 2009 @01:05PM
(#800586)
If the government is willing to bail out companies that fail then it reduces risks, so you should be more willing to invest in those companies.
Re:Japan building 1GW, $21bn solar power station in space
by anamax on Wednesday September 02, 2009 @02:27PM
(#800793)
You're assuming that the govt will bail out investors. GM proves that it won't. It can't even be relied on to guarantee that lenders keep their place in line.
Re:Japan building 1GW, $21bn solar power station in space
by kingkongrevenge on Wednesday September 02, 2009 @04:25PM
(#801028)
Yes, exactly. That is the problem. Capital destroying companies are attracting capital due to government interference, when really they should be liquidated and bought up by competent managers.
The opportunity cost was enormous. The bailouts were a disaster for American capitalism. We now have a huge tattoo that reads "WARNING: Crony Capitalist Country. Proceed with caution".
Don't ignore the very difficult to quantify effects of the bailouts on the credit markets. The whole lesson will surely make the US a less credit worthy market and raise more questions about the dollar.