tag:blogger.com,1999:blog-33693245.post5208967701309437490..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Bailouts need not mean losses to taxpayesThe Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-9286215348956012672013-07-24T08:59:17.789+05:302013-07-24T08:59:17.789+05:30Government bailout means not only capital infusion...Government bailout means not only capital infusion, it is also the intervention by the government so that the "funny business" of looting the company cannot go on -- atleast not to the extent it was going on.<br /><br />Which is what the company needed in the first place. A good CEO who needs to cleanup the business.<br /><br />In any other capital infusion / bailout by a third party you don't have the stick to cleanup the company so its doomed to fail.<br /><br />It does not give the right of the company to mess up in the first place and the government to gamble (it could have gone either way) with the public tax payers money.<br /><br />If a company has bad governing structre, overspending, scandalous and its stake holders are looting it, why should governemnt help the company.<br /><br />If I blow off all my assets in partying, would government help me to getback to the same state ?<br /><br />Bailouts may not mean losses to taxpayers. -- the key word here is *may*. But it certainly means government gambles with taxpayer money and it *may* loose as well.<br /><br />The Cranky observerCrankxhttps://www.blogger.com/profile/04288899536443895829noreply@blogger.com