Quote:
Originally Posted by Desx  If the government will not let these companies fail.. wouldn't it be smart to buy them at a very cheap price? because it's almost guaranteed they will go up? |
It's akin to paying 100$ for something that is only maybe worth 40$. Sure, it will likely go up but who knows how long it will take before it breaks even all the
while you are paying interest on the 100$ you are borrowing for this 'investment'.
Add a dozen zeroes to that 100$ bill and you get the idea of what kind of an issue this is. If the US FED had no debt and was running at a surplus for a while now, this wouldn't be such a difficult decision.
edit: Another way to put this, and phrasing it this way should be infuriating most of the taxpayers is that, you're all giving 700$+ billion to these companies with no downsides,
money they will turn around and loan to you at an interest. 