When a company gets bailed out with taxpayer money, why is it not owned by the public now?
In: Economics
A company that needs money is like your friend who owns a home needing money. They can either sell you a part of the home itself, or they can use some of the furniture and junk in the basement as collateral for a loan. In the case of the home itself, you now own a part of the home, in the case of furniture & junk, you have a loan against those assets and can collect them if they don’t pay off the loan. That’s the same for businesses, they only want a loan on the questionable assets they own, they do not want to sell a part of the company to the government.
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