MichVandal
Well-known member
It's not to "save the company". it's to provide it with some operating liquidity.
With the amount of outstanding shares these companies have been spending the last 20 years buying up so the CEO can keep getting huge bonuses, I think they can manage.
If they need to do it to save the company, one, I doubt they have many shareholders left, and two, no one's gonna buy it anyway. Unless it's someone like Bain, who'll squeeze every dollar out of it that they can before discarding the worthless husk. .
Right, when it comes to saving the company, that's for bonds. That's how Ford managed to survive in 2006/07 when they took out a multi billion dollar loan against the F150 and the Ford Oval.
Stock buy back by a company should be illegal, as all that does is prop up the price in a non-business manner- which helps the share holder. And a large amount of the high end shares are the BOD and the upper parts of corporations.
Bail outs because of external factors has it's place. But in this case, the economic problem isn't caused by some bad happening that some other economic sector forced (what happened in '08 to the auto makers) - this case is more a universal pause for some that can easily be taken up by the government via direct payments.
Directly pay people to stay home. Done. Keeps the bare minimum of the economy moving and people manage to eat and have a roof over their heads. That's how many of the EU did it.