Instead of nationalizing them, create an index fund run by the government. Capitalize the fund using taxpayer dollars and use the fund to buy out the companies at rock bottom. Then distribute the entirety of shares in the fund to all US tax payers.
Taxpayers then win on the upside when things recover.
If you buy a troubled company, the company is still troubled, you just own it, no resources have been transferred into it. Give away the shares to the population then you don't have any influence on it any more.
If you buy it by purchasing newly issued shares, then the money does go directly to the company and the existing shareholders stakes are diluted.
The effectively takes the bailout money away from the stockholders, which seems appropriate, since their shares would be worth even less if the company were allowed to fail.
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Instead of nationalizing them, create an index fund run by the government. Capitalize the fund using taxpayer dollars and use the fund to buy out the companies at rock bottom. Then distribute the entirety of shares in the fund to all US tax payers.
Taxpayers then win on the upside when things recover.
That's just nationalizing them with extra steps, if I may deploy a cliché.
I definitely agree with the idea, but it's effectively the same as taking them private with government money and re-IPOing them later.
If you buy a troubled company, the company is still troubled, you just own it, no resources have been transferred into it. Give away the shares to the population then you don't have any influence on it any more.
If you buy it by purchasing newly issued shares, then the money does go directly to the company and the existing shareholders stakes are diluted.
The effectively takes the bailout money away from the stockholders, which seems appropriate, since their shares would be worth even less if the company were allowed to fail.
If the company is allowed to fail shares usually come out worth zero after the bankruptcy. Dilution can't be worse than 0.