Comments by "Matthew Loutner" (@Matthew_Loutner) on "Chinese Stock Market Plummet: Investors Flock to US Embassy for Help - Down with the CCP!" video.

  1. 3
  2. 2
  3. 2
  4. 1
  5. 1
  6. 1
  7. 1
  8. 1
  9. 1
  10. 1
  11. 1
  12. 1
  13. 1
  14. 1
  15. 1
  16. 1
  17. 1
  18. 1
  19. Β @Jaime-eg4ebΒ  Lending is not always what they do in these bailouts. One of the things the big banks do is buy all of the low value loans from the smaller bank. That leaves the smaller bank awash in the cash they need to continue operating. In real estate, the bigger company will just buy your whole company leaving you with sufficient cash to start over. A corporation can buy stock in a troubled corporation leaving the troubled corporation with cash. Other times they will buy out the whole corporation and install all new management, giving the troubled corporation a whole new start. A government bailout usually entails a gift (grant) of a large amount of cash. But it may have performance criteria attached. For example when the government bailed out General Motors, General Motors was running 5 different car lines and the company was just too big. So the government put stipulations that General Motors had to close a bunch of their dealerships and shut down Pontiac entirely. As far as loans . . . a bank will not make any loan to anybody that has terms that the borrower is not able to pay back. Do you think bankers are stupid? And you are completely overlooking that if the troubled person is carrying a loan at 10% interest and refinances that loan at 5% interest that cuts their monthly payment in half. You can do the same thing with the term. If a person is carrying a 7 year loan and you refinance them into a 14 year loan, that cuts their monthly payment in half. Then there is consolidation: For example, if a person has 5 credit cards and is paying $30 a month on each one, they may not be able to do it. But if they take out a consolidation loan and pay off all 5 credit cards, then they may have only 1 payment of $45 instead of 5 payments of $30 each. If a whole country is in trouble, we can send a dozen American companies to build factories in the ailing country and the corporations will finance the whole project themselves. It will not cost the host country a cent. We know how to do this stuff . . .
    1
  20. 1
  21. 1
  22. 1