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Are the bankruptcies of large companies a thing of the past?
By Loopholes Singapore  •  July 1, 2020
While this is is not entirely new because many bailouts have happened in the past century for banks and even countries. The part that raises eyebrows nowadays is bailouts for specific privately-owned companies. Perhaps this is the result of companies becoming too large or as we now call, “too big to fail.” Basically, if the company is not sustained, thousands will lose their jobs and lead to bigger problems for governments. Therefore, we are beginning to see large companies rescued by banks and central banks. Are bailout decisions hard to make in today’s context? In general, the supply of money is ever increasing because governments need to ensure and help maintain the financial positions of their financial institutions. As such, pumping more money into the economy has become a choice to make as compared to the past when the supply of money in one area means...
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By Loopholes Singapore
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