They shouldn't have invested in a badly managed company then.
As long as investors don't feel their moral Hazzard, companies will keep doing the same things. Because investors will keep investing in them because they'll get bailed out at the end.
Why wouldn't you invest in boeing if you know they are going to prioritize short term profits (good for you) and as soon as that comes back to bite the company it's going to be bailed out.
And if you keep bailing them out, it's in the companies best interest to prioritize short term profits over long term consequences, because that's what's best for investors.
Government bailouts pervert the market in extreme ways (you are essentially subsidizing risk), and it's the very reason why too big to fail companies keep doing the stuff they do.
The point of the "market" is leaving the pricing to investors, if they fail to price the company correctly then it's their loss, just like it's their win when the stock goes up.
The best option for too big to fail businesses failing is to buy 100% of it's shares when it declares bankruptcy (at close to $0), fire all top level management and the board, inject the cash needed and fix the companies culture to a prdoduct focused instead of finance focused (that's why the people rescued it), then IPO once it's numbers are in the green (or give one share to every tax paying resident)
As long as investors don't feel their moral Hazzard, companies will keep doing the same things. Because investors will keep investing in them because they'll get bailed out at the end.
Why wouldn't you invest in boeing if you know they are going to prioritize short term profits (good for you) and as soon as that comes back to bite the company it's going to be bailed out.
And if you keep bailing them out, it's in the companies best interest to prioritize short term profits over long term consequences, because that's what's best for investors.
Government bailouts pervert the market in extreme ways (you are essentially subsidizing risk), and it's the very reason why too big to fail companies keep doing the stuff they do.
The point of the "market" is leaving the pricing to investors, if they fail to price the company correctly then it's their loss, just like it's their win when the stock goes up.
The best option for too big to fail businesses failing is to buy 100% of it's shares when it declares bankruptcy (at close to $0), fire all top level management and the board, inject the cash needed and fix the companies culture to a prdoduct focused instead of finance focused (that's why the people rescued it), then IPO once it's numbers are in the green (or give one share to every tax paying resident)