Old 02-24-2009, 03:51 AM
Senior Member
Join Date: Feb 2007
Posts: 18,196
Default Re: Help Me Understand This Bank Bailout Thing

The only way borrowed money can increase the equity value of a company is if the market believes it will generate more in returns than the cost it has to pay for the funds. The fact that the government is involved blows that possibility right out of the water, especially given all the rhetoric that is being thrown around.
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