Comment by lowdose

5 years ago

> Without government help there wouldn't be any airlines left.

Could you elaborate on that please?

Edit: It's just another round of socializing risk while privatizing profit. Too big to fail is a hoax. When a firm is declared bankrupt only 1% the of value is lost to bankruptcy costs.

The other 99% is recovered by creditors through asset sales, restructuring, layoffs of people that use their knowledge in other companies.

The ratio of direct bankruptcy costs to the market value of the firm appears to fall as the value of the firm increases.

As measured here, the cost of bankruptcy is on average about one percent of the market value of the firm prior to bankruptcy.