Comment by treyd

Comment by treyd 17 hours ago

4 replies

If a company has truly become too big to fail that it makes sense for the federal government to bail them out, then why are we even leaving the welfare of the company up to private industry in the first place? It's just asking for ways to siphon taxpayer money out of the government through their willingness to buy shares. It inflates the stock price because it shows that the government might buy more share in the future at market rate. Its operations should be required to be more transparency, since if they're large enough that their failure would dramatically impact the welfare of the whole country, their operations should be subject to more direct democratic will (at least, more direct than the many steps removed from what is happening to Intel).

justonceokay 4 hours ago

Maybe. I have worked in the corporate world for decades. My partner works in the government. My perspective is that the government office wastes so much time (and therefore $$) that I often have to keep my mouth shut to maintain peace in our relationship. There is no “disagree and commit” mentality. More like 9 months into a project and someone starts to feel “uncomfy” about something and we’re back to the drawing board.

I do believe the government is in a better position to provide services to the poor, but they are in no way going to be cheaper in the long run.

That being said, I do live in Seattle, which has a particularly “bogged down” government. Look up the “Seattle process” for some horror stories

hluska 17 hours ago

Intel is public and their financials have indicated this would happen. Even at my most irrationally exuberant their stock buybacks didn’t make much sense.

I’m not sure what “more transparency would look like to you, but publicly traded companies with audited financials are quite transparent. As for the part about siphoning money, history has shown that taxpayers do well. In 2008, the US government took roughly 80% of AIG, sold off their stock by 2012, made a roughly $15 billion profit and AIG is no longer considered too big to fail. It worked and did what it was intended to do. There are reasons to be positive about this.

  • WorkerBee28474 16 hours ago

    Don't forget that the US government took roughly 80% of AIG in a move that was later declared illegal and made a roughly $15 billion profit.

    • hluska 14 hours ago

      > in a move that was later declared illegal

      To be fair, a lower court ruled it “illegal exaction” but awarded $0 in damages as the illegal exaction prevented bankruptcy which would have zeroed out the investment anyways. Then the Federal Court of Appeals tossed that ruling as the plaintiffs did not have standing to pursue action.

      There is no current ruling that the acquisition was illegal.