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Open original source ↗Here’s my take. If the government is the “lender of last resort” they should 100% take equity and arguably 100% of the equity. Failed to do this with GM, Goldman Sachs, United (& other airlines). How do you know if they are lender of last resort? The company takes the deal.
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Should the govt start taking equity in every start-up for the federal tax incentives we offer? Or Tesla? How about the banks? What about when a state govt offers a tax incentive? Should they get an equity stake in exchange? Board representation? This is a super slippery slope!
andrewrsorkin ↗