Need to update the aphorism:
If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem. If you owe the bank $100 billion, that's country's problem.
If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem. If you owe the bank $100 billion, that's country's problem.
https://www.reuters.com/article/business/us-government-says-...
GM lost taxpayers $11B, Chrysler lost $1.2B.
https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
TARP delivered a $15.3B surplus on $426.4B invested for a roughly 3.5% return.
Note also that since then, all the nationalized banks are back on the public market with the state only holding plurality or even minority shares. Investment/retirement funds and private investors together hold bigger share then the state. These shares were more often then not released on a steep discount allowing investors (many of whom responsible for the 2008 crash) essentially free money from the state.
I think the only reason Iceland nationalized the failed banks in the first place was because they had no other option, the economy is too small, and they simply could not afford to bail them out, the money literally did not exist.
Also, today’s Iceland is extremely troubled by austerity. Schools and healthcare is extremely underfunded. Teachers- and nurses strike almost every 2 years. The city of Reykjavík just started their biggest round of mass-layoff ever.
That's got perverse consequences. Just like with the corporate leadership, you're encouraging bureaucrats to make bad decisions because (a) they don't have to answer for their bad decisions, and in fact (b) they'll get to expand their authority should their decisions go bad.
The corporate leadership that got us to the problem should suffer, but so should any bureaucrats who had a part it allowing it to happen.
It's kinda like taxes. Who among us would say their tax dollars are and have been well spent? Then why on earth would any of us want to give these idiots more of our hard earned dollars.
Clinton worked with a Republican Congress (House and Senate). Both compromised, negotiated, and achieved something difficult and substantial.
We don't elect adults anymore.
I still believe in democracy as a system however. It does need to be protected and maintained though. Jefferson said that "the tree of liberty must be refreshed from time to time with the blood of patriots and tyrants" and right now the tree is starting to look parched, but I'm still hoping we can bring it back into health with just a little more care and attention.
The phrase is "that would be good for the economy".
It’s still the notion of trickle down economics at play.
But they did get a 3.5% return on their investment (but not comparable to the equivalent return in the market or even in bonds for the same duration).
That return was in turn used to justify the bailout, but the global macro effects weren’t accounted for: the banks’ fuckup caused misery all over the world for the best part of a decade.
The rate of growth in this sector is "1. move so fast legislators can't keep up; 2. keep going until you hit a limit, then find a way to hack around that limit; 3. GOTO 2".
Banks weren't over levered back then either because all the mortgages went straight into CDOs held by other people/institutions.
The problem was that nobody trusted each other because Lehman could just fail. So they stopped lending to each other (like the daily loans they give each other). Trust evaporated and the whole system stopped dead in its tracks.
Leverage is not the only thing that matters...
https://www.bloomberg.com/opinion/newsletters/2026-10-29/run...
They bailed out Intel and the stock recovered.
Might do the same.
It takes forever to do anything new in hardware.
This is unfortunately a VERY long game.
The stock price recovered. This is a fact. From 20 to 60.
Cannot be argued.
The business will take time to recover. There is no other way. Either it takes time to recover, or it never does. One year is not remotely enough time to know.
Intel’s revenue is currently worse than 10 years ago, and gross profits are 2/3 of what they were around 2012.
The temporary price hike was caused by a huge temporary jump in relative valuation (probably because the US Gov started subsidizing).
See the historical graphs:
- https://www.macrotrends.net/stocks/charts/INTC/intel/pe-rati...
- https://www.macrotrends.net/stocks/charts/INTC/intel/revenue
- https://www.macrotrends.net/stocks/charts/INTC/intel/gross-p...
Big companies are like big ships. Takes a LONG time to turn.
Game is not over yet.
> They bailed out Intel and the stock recovered.
I don’t think the stock (or the company) has recovered at all. Neither profits nor revenue (see my links above).
But hey, who knows what the future brings.
It closed today above $60.
That's a stock recovery.
I was very specific. I said stock. That's a recovery.
Currently trading at 3-4x historical valuation (20y typical range of forward P/E).
> They bailed out Intel and the stock recovered.
This is not demonstrated. What did the Trump admin "figure out"? Socializing private losses (especially if it's only temporary), is another problem, not a solution.
How to abuse their position to stuff insane amounts of money into their own pockets at the expensive of the American people and get away with it.
Our enemies should be throwing him parades even if he isn't a foreign agent. He's the gift that just keeps on giving.