Why is value the most shocking thing? I cant understand how $ is usually the #1 thing... it is missing the big point and implicitly accepting the big point. The US government's role has changed significantly-- a new precedent established. Additionally, It is a good way to pump up stock prices.
It’s not a new precedent. The Bush & Obama governments did the same thing with TARP where they gave loans and got equity stakes in banks and automakers. Taxpayers made money from the banks and lost money bailing out the automakers.
yeah but TARP was congressionally authorized. this little gambit is not.
Two different things: TARP was industry wide, Intel a company. congress approval vs executive conversion of grants to equity. Gov oversight vs passive stake. Crìsis vs oh this is shiny. Crisis management vs Intervention. Not the same thing... stopping a collapse vs picking a winner...