Krugman -- says massive cash infusions come at the price of an equity stake. Duh! That's how capital markets work.
Perhaps some firms should get a washout round (which is slightly less severe than a complete takeover). Some should get something less severe, like having to issue stock warrants (basically the same concept as stock options) which allow the taxpayer to cash in if the value of the company increases. Bashing exec salaries doesn't get to the crux of the biscuit. True wealth comes through equity. Hit the fuckers right there, which will also hit the stock holders who went along for the ride.
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Perhaps some firms should get a washout round (which is slightly less severe than a complete takeover). Some should get something less severe, like having to issue stock warrants (basically the same concept as stock options) which allow the taxpayer to cash in if the value of the company increases. Bashing exec salaries doesn't get to the crux of the biscuit. True wealth comes through equity. Hit the fuckers right there, which will also hit the stock holders who went along for the ride.
- mark 9-23-2008 3:09 am