Bailing out the equity holders of large corporations makes no sense at all.

Especially when the government is the final decision maker in terms of which companies, which industries, and which sectors are made whole.

Why the airlines, but not energy stocks?

Yes, coronavirus is black swan — and therefore a suboptimal event to plan and allocate for ahead of time.

In that sense, we can’t blame companies for not having “X months of cash on hand”.

Any event like this is also inherently indiscrimanatory, and it’s not “fair”.

But setting the precedent of explicitly picking winners and losers is wrong.

It rewards excessive risk-taking, and suboptimal capital allocation.

In my opinion, the upside of propping up the equity and unsecured debt of these companies is meaningfully outweighed by the long term impact on the way we do business in this country.

Because why even bother trying to run your business well, when you can always run it poorly and get bailed out by the government at a later?

Let investors and speculators lose. Otherwise we will never learn.