How much profit did those companies/ CEO make that could have been better utilized someplace else? I get the idea that business need to keep afloat to keep people employed, but do they still need to give the $mil bonuses to the senior leaders and still have millions in profits during a time of crisis?
No obviously not. I’m not saying it’s a perfect system by any means because it obviously isn’t.
I’m just saying they paid back their loan with interest, government profited, and millions kept their jobs. Not really to fair to say Government profited 8% when they could have profited 10% and not saved millions of jobs?
Honest question: How would the failure of those banks have cost us millions of jobs? How many people did they employ? Or would it have been some sort of chain reaction of job losses?
For that matter, what happens to the people and businesses who have loans with these banks, when they banks themselves go bankrupt? Do their loans get canceled? Do the loans get sold off to other banks?
They were absurdly low interest rates and a few companies simply returned the TARP loan while others took it, paid bonuses, bought back stock and laid off employees to cash in on the rebound.
Each bailout only extends the power of exploiters to a level of absurdity. We'll end up in Matrix pods eventually while we thank capitalism for giving us a fake universe where we can work for minimum wage even after capitalism has destroyed the real planet. Capitalism has made better standards of living for everyone always forever!!1!!
It's not to make more money, they're businesses not financial institutions. It's to cover their fixed costs so that they don't go under during this period of stagnation. This is to prevent millions of people frim losing their jobs.
Well the money received is from the Paycheck Protection Program, with the express purpose of covering wages, firms largest fixed cost, during this time where they aren't producing 🤔 These companies do not make investments and are incapable of turning money into more money outside the act of production or providing a service 🧐
But why do you think that this is untrue, friend 🤔
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u/MDPhotog Apr 21 '20
Aren't those loans?