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/biz/ - Business & Finance

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55812584 No.55812584 [Reply] [Original]

Why shouldn't I put my entire net worth and every single penny I earn into companies that are Too Big Too Fail™? What's the worst that could happen? It's literally impossible for them to fail? Why aren't more people doing this?

>> No.55812610

>>55812584
Their stock prices can still plummet, even if the companies don't go bankrupt. Diversification is always better for risk management.

>> No.55812641

>>55812610
why would their stock prices ever plummet when the market knows it's just a matter of time until they go back up because it's impossible for them to fail?

>> No.55812990

>>55812641
As part of the being bailed out they're likely to be forced to issue new class A shares that the Fed can keep in their books.

>> No.55812996
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55812996

>>55812641
Share dilution
>oh shit we're about to go bankrupt! The feds found out we've been fudging our books for 15 years!
>FUCK IT, print 10 billion shares!
>suddenly the average boomer holder's portfolio is down 89%
>We did it! We saved America!

>> No.55813016

>>55812584
Why did they need to bail out GM and Chrysler? Was it just to bribe UAW employees for future votes?

>> No.55813047

>>55812996
>F0RD ID
Is it a sign of what to invest

>> No.55813057

>>55813016
They were big into auto loan lending and military contracts. Something they doubled down on afterwards especially in the sub-prime sector.

>> No.55813060
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55813060

>>55813047
Absolutely not, you should invest in altcoins though. There are some really stupid winners these days.

>> No.55813064

>>55813016
they went bankrupt. they should not exist today

>> No.55813466

>>55812584
Just because a company may be deemed that meme term doesn’t mean investing in them is worthwhile. If anything that means those companies will be turned into zombies where future private investment really isn’t worthwhile since they are ran by design to barely make any major moves. I own a couple dozen Ford shares so I know what I’m talking about.