Would anyone buy the stock if they knew that when the next Black Swan or recession happens there would be no possibility of a bail out? Or are bailouts just welfare for investors (with a happy coincidence of keeping voters employed in bad companies)?
The last time Air New Zealand was bailed out the government in fact bought them out (over 50%). I think governments should have buy outs not bail out.
This way any future dividends or buybacks will benefit the tax payer at the expense of existing investors.
The last time Air New Zealand was bailed out the government in fact bought them out (over 50%). I think governments should have buy outs not bail out.
This way any future dividends or buybacks will benefit the tax payer at the expense of existing investors.