webfact Posted March 20, 2020 Share Posted March 20, 2020 Trump says he would support government taking stake in certain companies By Alexandra Alper U.S. President Donald Trump stands with members of the administration's coronavirus task force as he addresses the coronavirus response daily briefing at the White House in Washington, U.S., March 19, 2020. REUTERS/Jonathan Ernst WASHINGTON (Reuters) - President Donald Trump on Thursday opened the door to a radical shift in the U.S. government's relationship to private industry as the coronavirus outbreak upends the nation's economy, saying he would back the government taking stakes in certain companies. Asked if he supported the federal government moving to take an equity stake in some companies, Trump said: "I do. I really do." Trump, speaking at a news conference at the White House, added: "We will be helping the airline industry. We will be helping the cruise ship industry. We probably will be helping the hotel industry." The White House did not immediately respond when asked if purchasing shares in battered companies was really under consideration. The U.S. government rarely invests in public companies except in the case of bailouts to save ailing firms and jobs. The COVID-19 disease caused by the novel coronavirus, which originated in China late last year, has sickened more than 11,000 people in the United States and killed more than 180, upending American life as it shutters schools, restaurants and businesses across the country. Bailout requests related to the spread of health crisis, in the form of direct grants, loans, loan guarantees and tax relief, have topped $2 trillion. Companies generally do not welcome government ownership for fear they would lose control of their business, however. PRECEDENT Taking stakes in companies is not without precedent in times of crisis. The Bush and Obama administrations loaned the auto industry, including General Motors and Chrysler, which is now controlled by Italy’s Fiat, $80 billion to avoid the collapse of the industry that they felt would result in the loss of millions of U.S. jobs. The U.S. government spent about $50 billion to bail out GM alone. As a result of the company’s 2009 bankruptcy, the government’s investment was converted to a 61 percent equity stake in the Detroit-based automaker, plus preferred shares and a loan. The government no longer has a stake in the company. Just last month, U.S. Attorney General William Barr said the United States and its allies should consider taking a "controlling stake" in Finland’s Nokia and Sweden’s Ericsson to counter China-based Huawei’s dominance in next-generation 5G wireless technology. The Trump administration accuses Huawei of being able to spy on customers and has led a global campaign to convince allies to keep the blacklisted company out of their 5G networks. Even if the idea of ownership stakes is ultimately discarded, sweeping measures to mitigate the economic fallout from coronavirus seem inevitable. Treasury Secretary Steven Mnuchin on Thursday urged Congress to pass a $1 trillion economic relief measure by early next week, adding the government was focused on being able to provide liquidity to companies. Asked if a trillion dollar stimulus is enough, Trump said: "We will know about that later. We'll see what happens. It depends how long, so much depend on what's going on in this room, in terms of the medical. If we can stop it in its track the virus, it's plenty. If we can't, we'll have to go back and talk." (Reporting by Jeff Mason and Alexandra Alper; additional reporting by David Brunnstrom; writing by Susan Heavey; Editing by Sonya Hepinstall) -- © Copyright Reuters 2020-03-20 Follow Thaivisa on LINE for breaking COVID-19 updates 1 Link to comment Share on other sites More sharing options...
Popular Post keith101 Posted March 20, 2020 Popular Post Share Posted March 20, 2020 So would his companies would be number one on his list ? 8 2 2 Link to comment Share on other sites More sharing options...
Popular Post geriatrickid Posted March 20, 2020 Popular Post Share Posted March 20, 2020 Sometimes the companies screw the government and ultimately the tax payer. GM did that to both the US and Canadian governments. Cost them billions. Some companies will require too much money denying a greater number of smaller companies in need the money. 3 1 Link to comment Share on other sites More sharing options...
Logosone Posted March 20, 2020 Share Posted March 20, 2020 That's the big problem with government bail outs, the government always prefers to fund the big players, the small players will be allowed to bite the dust. The logic is 'why save companies that would fail anyway', so only the strongest get the real aid. Those that truly need it will be denied loans because their figures don't look good enough. 1 1 Link to comment Share on other sites More sharing options...
Popular Post Chomper Higgot Posted March 20, 2020 Popular Post Share Posted March 20, 2020 Crony Socialism. 14 5 Link to comment Share on other sites More sharing options...
Popular Post Tug Posted March 20, 2020 Popular Post Share Posted March 20, 2020 And there I thought republicans wanted small government silly me 7 4 Link to comment Share on other sites More sharing options...
Popular Post Tug Posted March 20, 2020 Popular Post Share Posted March 20, 2020 42 minutes ago, keith101 said: So would his companies would be number one on his list ? Oh you can bet he will be first in line at the hotel bailout trough 8 1 3 Link to comment Share on other sites More sharing options...
Logosone Posted March 20, 2020 Share Posted March 20, 2020 Well, who would want to be on the board of Boeing now? Or British Airways? Link to comment Share on other sites More sharing options...
Popular Post Nyezhov Posted March 20, 2020 Popular Post Share Posted March 20, 2020 18 minutes ago, Tug said: Oh you can bet he will be first in line at the hotel bailout trough Bet you he wouldnt. No realistic person thinks he would. I simply cannot understand why an important subject like this cant be debated without the playground Trump bashing. Do you and others do that to convince yourselves? Because you arent convincing anyone else. 7 1 9 Link to comment Share on other sites More sharing options...
Popular Post Susco Posted March 20, 2020 Popular Post Share Posted March 20, 2020 1 hour ago, webfact said: Trump, speaking at a news conference at the White House, added: "We will be helping the airline industry. We will be helping the cruise ship industry. We probably will be helping the hotel industry." Read: The tax payer will be helping to bail out these industries. And why would the airline industry get any help. They have spent all their cash reserves on stock buy backs, and now they gone rely on the tax payer? Disgusting 6 2 Link to comment Share on other sites More sharing options...
Eric Loh Posted March 20, 2020 Share Posted March 20, 2020 14 minutes ago, Logosone said: Well, who would want to be on the board of Boeing now? Or British Airways? I can say all the board directors are hanging around except Nikki. They have been assured a bailout by POTUS. Not so lucky for BA; still waiting for Boris to made a decision. 1 Link to comment Share on other sites More sharing options...
Rimmer Posted March 20, 2020 Share Posted March 20, 2020 Unattributed post removed Link to comment Share on other sites More sharing options...
Popular Post Cory1848 Posted March 20, 2020 Popular Post Share Posted March 20, 2020 3 hours ago, Nyezhov said: Bet you he wouldnt. No realistic person thinks he would. I simply cannot understand why an important subject like this cant be debated without the playground Trump bashing. Do you and others do that to convince yourselves? Because you arent convincing anyone else. He's already funneled millions of taxpayer dollars to his personal businesses. Why stop now? As for the "importance" of the subject, Trump himself was downplaying the virus as a "hoax" until just a short time ago, when the numbers of infected got into the thousands and he could no longer pretend it didn't exist. The best thing for the US right now would be for Trump to quarantine himself in a corner of his own playground, where he can bawl about the Fed Chair and the stock market and the Chinese until his face turns blue, and let state governors and other adults manage things the best they can. 11 3 Link to comment Share on other sites More sharing options...
Popular Post muzley Posted March 20, 2020 Popular Post Share Posted March 20, 2020 6 hours ago, Nyezhov said: Bet you he wouldnt. No realistic person thinks he would. I simply cannot understand why an important subject like this cant be debated without the playground Trump bashing. Do you and others do that to convince yourselves? Because you arent convincing anyone else. They aren't convincing me. Just glad DT is in charge and not that senile, corrupt Joe "China" Biden or else Chinese travel to the USA would still be allowed and god knows how many more would be infected and dead. Way to go CIC!! 2 1 5 Link to comment Share on other sites More sharing options...
simple1 Posted March 20, 2020 Share Posted March 20, 2020 6 hours ago, Susco said: Read: The tax payer will be helping to bail out these industries. And why would the airline industry get any help. They have spent all their cash reserves on stock buy backs, and now they gone rely on the tax payer? Disgusting Have to be pragmatic - once share price falls to an point that makes a company not viable, in the current environment, government needs to step in to sustain strategic industries & jobs. Government can enforce Board / management changes & other conditions for intervention. IMO the problem is lack of trust in the trump administration in general, to put in place appropriate management for supported companies (not cronies), policy to address the consequential increasingly massive national debt. https://www.usdebtclock.org/ 1 Link to comment Share on other sites More sharing options...
Popular Post Sujo Posted March 20, 2020 Popular Post Share Posted March 20, 2020 Trump the commie socialist. Oh what repubs have become. 5 2 Link to comment Share on other sites More sharing options...
Popular Post OneMoreFarang Posted March 20, 2020 Popular Post Share Posted March 20, 2020 Isn't that what they do in communist countries? But obviously he can't mention that word... 6 Link to comment Share on other sites More sharing options...
Thomas J Posted March 20, 2020 Share Posted March 20, 2020 6 hours ago, Susco said: And why would the airline industry get any help. They have spent all their cash reserves on stock buy backs, and now they gone rely on the tax payer? Susco, Companies use stock buy backs because the damn government taxes ordinary income twice. The company earns the money pays its income tax on it, then distributes it to the shareholders and it is taxed on the same income again. Buy backs are intended to boost the share price so that hopefully the owner only pays the smaller capital gains tax rather than the income tax on the income earned by the company he/she owns as a shareholder. Secondly, with all of the suits companies face from things like Boeing airplanes, or Bayer's purchase of Monsanto and its associated Glysophate, the last thing companies want on their balance sheets is huge amounts of cash that can be easily picked off. If you bitch about the money earned by the airline companies, and pharmaceutical companies and I assume Walmart as well, perhaps you will change your mind, when you can't fly anyplace, have no medicines to cure the diseases you have, and nothing to eat because Walmart is closed. 2 Link to comment Share on other sites More sharing options...
Peterw42 Posted March 20, 2020 Share Posted March 20, 2020 8 hours ago, geriatrickid said: Sometimes the companies screw the government and ultimately the tax payer. GM did that to both the US and Canadian governments. Cost them billions. Some companies will require too much money denying a greater number of smaller companies in need the money. GM screwed the Australian government as well, probably worse than US/Canada, taxpayer funds equal to $20k per vehicle they manufactured. Link to comment Share on other sites More sharing options...
Caldera Posted March 20, 2020 Share Posted March 20, 2020 His orange tan looks more ridiculous than ever. What's much more concerning, however, is that he's now embracing Socialist ideas. The government shouldn't own companies. Help them get through this crisis, sure. Buy a stake, HELL NO. 2 Link to comment Share on other sites More sharing options...
Basil B Posted March 20, 2020 Share Posted March 20, 2020 Anything to do with Boeing shares being in free fall??? Link to comment Share on other sites More sharing options...
Susco Posted March 20, 2020 Share Posted March 20, 2020 2 hours ago, Thomas J said: Companies use stock buy backs because the damn government taxes ordinary income twice. The company earns the money pays its income tax on it, then distributes it to the shareholders and it is taxed on the same income again. Buy backs are intended to boost the share price so that hopefully the owner only pays the smaller capital gains tax rather than the income tax on the income earned by the company he/she owns as a shareholder. Isn't that what I said? They don't want to pay taxes, yet when there is an issue they want bailout with tax money, paid by the working class. Yet they can pay the CEO and other board members many million dollars in salary every year. Disgusting 1 Link to comment Share on other sites More sharing options...
bristolboy Posted March 20, 2020 Share Posted March 20, 2020 10 hours ago, keith101 said: So would his companies would be number one on his list ? I've been trying to find out if Mar a Lago is closed for the duration. So far, I haven't found any news about that. Link to comment Share on other sites More sharing options...
Cryingdick Posted March 20, 2020 Share Posted March 20, 2020 10 hours ago, Logosone said: That's the big problem with government bail outs, the government always prefers to fund the big players, the small players will be allowed to bite the dust. The logic is 'why save companies that would fail anyway', so only the strongest get the real aid. Those that truly need it will be denied loans because their figures don't look good enough. Okay so you are suggesting the USA can function without airplanes and airlines? The big players get bailed out because the country can not function without them. Bob's Beach Burger Stand doesn't get bailed out because somebody else can come in and simply open another burger shop. There isn't enough money to bail out everybody. Link to comment Share on other sites More sharing options...
Cryingdick Posted March 20, 2020 Share Posted March 20, 2020 2 hours ago, OneMoreFarang said: Isn't that what they do in communist countries? But obviously he can't mention that word... He is compromising with Pelosi to get anything done. If he didn't go with it you would say he is a cold capitalist, if he compromises you bash him anyway. If he turned water to wine you would criticize him for doing something Jesus does. 1 2 Link to comment Share on other sites More sharing options...
Chomper Higgot Posted March 20, 2020 Share Posted March 20, 2020 5 minutes ago, Cryingdick said: Okay so you are suggesting the USA can function without airplanes and airlines? The big players get bailed out because the country can not function without them. Bob's Beach Burger Stand doesn't get bailed out because somebody else can come in and simply open another burger shop. There isn't enough money to bail out everybody. For the record are you still a Boeing stock holder or did you get out on the crest of the wave? 2 Link to comment Share on other sites More sharing options...
bristolboy Posted March 20, 2020 Share Posted March 20, 2020 4 minutes ago, Cryingdick said: Okay so you are suggesting the USA can function without airplanes and airlines? The big players get bailed out because the country can not function without them. Bob's Beach Burger Stand doesn't get bailed out because somebody else can come in and simply open another burger shop. There isn't enough money to bail out everybody. But that doesn't mean it can't go bankrupt and its sharelholders lose everything. Let the Feds fund it and when the shares recover they can be sold. With stipulations banning buybacks and other irresponsible corporate behavior. Otherwise, it just another welfare program for the wealthy. 1 1 Link to comment Share on other sites More sharing options...
Chomper Higgot Posted March 20, 2020 Share Posted March 20, 2020 4 minutes ago, Cryingdick said: He is compromising with Pelosi to get anything done. If he didn't go with it you would say he is a cold capitalist, if he compromises you bash him anyway. If he turned water to wine you would criticize him for doing something Jesus does. I think what we’ll actually do is ignore the words and watch the action - let’s see who gets the money and how much they get. Link to comment Share on other sites More sharing options...
Cryingdick Posted March 20, 2020 Share Posted March 20, 2020 Just now, Chomper Higgot said: For the record are you still a Boeing stock holder or did you get out on the crest of the wave? You can look up my posts Boeing traded at around $375 when I sold out. Go look up the posts the dates and you can see that. I sold out when the first mention of criminal allegations were brought up. I don't like to do business with companies that are potentially open to criminal investigations. Because of my upstanding morals in that regard I am often rewarded by not losing money when things get ugly. Is there any particular reason I should have to put up with the three posters like you that continuously call me a liar? Link to comment Share on other sites More sharing options...
Cryingdick Posted March 20, 2020 Share Posted March 20, 2020 Companies that don't need help should be allowed to do what they want. If your company needs the government tit to stay afloat maybe buybacks shouldn't be allowed. That's fair enough. However if you don't allow buybacks or dividends you aren't going to find many investors interested in it's stock in the future. Why would I buy something like American Airlines knowing the stock is going to stagnate forever when you can buy a company like Apple that has something like $100 billion to keep it's stock high? Link to comment Share on other sites More sharing options...
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