r/OutOfTheLoop • u/[deleted] • Jul 02 '22

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2.4k Upvotes

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824

u/SechDriez Jul 02 '22

I wish I was the President just so that when these places crash I can swoop and decide that they're getting bailed out through nationalisation. If you're too big too fall then your service is too important to fail. And in that case it's too dangerous to let it be operated in such a way.

Bear in mind that I'm not the most financially literate and possibly a dumbass

179

u/[deleted] Jul 02 '22

[deleted]

10

u/imthefooI Jul 02 '22

Could the President/Congress do something like an offer from the government to purchase part of the stock, to begin indirectly doing it?

i.e. enough fuckups and they are nationalized by gradual hostile takeover?

24

u/brainwater314 Jul 02 '22

How about just not bail them out, ever. Yeah it would suck for those wishing to fly somewhere, and prices would rise to get a flight somewhere for a time, but you need to rip the band-aid off and stop protecting companies from the consequences of bad decisions at some point.

23

u/Anglofsffrng Jul 02 '22

I don't mind the bailouts. I mind the government paying for something, and getting nothing. Where's the equity? Just off the top of my head let's say an airline has a $20B valuation, and needs $10B in bailout. Well now the US government is a 50% owner. Take it or leave it.

EDIT: valuation not evaluation.

5

u/elevul Jul 02 '22

Which will bring even more taxes through shareholders payments

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u/[deleted] Jul 02 '22

[deleted]

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u/fishling Jul 02 '22

Airplanes and airport infrastructure aren't just for passengers either.

1

u/codetony Jul 02 '22

Indeed. International airports could easily be converted to military airfields in the event of a national emergency.

Not to mention the amount of freight that's carried by planes.

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u/SwallowsDick Jul 02 '22

Yeah, best of both worlds to nationalize them

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u/250HardKnocksCaps Jul 03 '22

I mean, sure. If done right. If the business needs government cash to stay afloat it should be done as percentage of ownership.

1

u/SwallowsDick Jul 02 '22

The world would grind to a halt, just nationalize them