Thu Mar 19 18:30:13 2020
<9e126bf3> why are people blaming stock buybacks for anything, really? It’s the opposite of dilution… you want companies to be able to buy back their own stock especially because they issued stock in the first place to raise capital from the public. Seems strange to blame the rewarding of investors when those investors are increasingly middle class 401k accounts
<6707bcd9> I think it’s because it counteracts moral hazard
<6707bcd9> If you put handcuffs on bailouts, it a.) makes companies less likely to take them unless strictly required, and b.) incentivizes companies to act more responsibly in the future
<6707bcd9> “you want to act crappy and expect a bailout? Fine, but it’s going to kneecap you from here on out”