Against the Coronavirus Bailout Bill

From My op-ed in The Hill:

Allow existing bankruptcy and insolvency processes to run their course. Bailouts are not the answer, new owners who can turn companies around are. Corporate assets, contracts and products don’t disappear in bankruptcy. Yes, there will be pain as many (not all) existing employees lose their jobs. But executives and boards of failing companies should lose their jobs first and foremost, and new shareholders should seek clawbacks of ill-deserved bonuses and stock compensation.

Again, this will not be pretty — but shareholders, not taxpayers, must bear the economic burden when companies fail.

 

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9:45 am on March 27, 2020