Auto bailout: Can’t prove a counterfactual, but you can infer

posted by
June 9, 2011
The Liberty Papers
by Brad Warbiany  
Posted in Commentary

"So the big debate is whether the gov’t should sell their post-IPO shares in GM. At current prices, they’d [unsurprisingly] be losing money on the sale, compared to the amount put up in the bailout. So we have to ask — was it worth it? To determine that, we can’t base our entire calculation on the return of the bailout. A bailout is offered with the expectation that you might not get *any* return — you bail to prevent the craft from sinking; anything else is gravy." (06/09/11)  

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