TL;DR
The Trump administration’s flirtation with a 10% stake in Intel was a blatant display of favoritism, potentially costing taxpayers billions and distorting the market. This near-miss highlights the dangers of government intervention and crony capitalism.
Story
The year is 2017. The Trump administration, in a move that smelled more like a backroom deal than sound economic policy, floated the idea of taking a 10% stake in Intel. Think of it as a corporate marriage arranged for political gain, not love.
How did this ‘almost happened’? The White House and other shadowy figures whispered of it, painting a picture of Uncle Sam rescuing a struggling tech giant. The reality? It was a blatant attempt at corporate favoritism, a backdoor bailout dressed in the flimsy clothes of national security. It was like watching Enron’s playbook dusted off and repurposed for the digital age.
The human impact? Taxpayers were the silent victims, potentially on the hook for billions in a risky investment. Meanwhile, Intel likely saw a temporary boost in its stock price – a classic case of market manipulation. It’s a bitter pill for those who believe that governments should act neutrally in the marketplace. This wasn’t about saving American jobs, it was about saving face.
Lesson? Governments shouldn’t be picking winners and losers in the market. That kind of interference breeds corruption and inefficiency. Remember 2008? Government bailouts, meant to save the economy, often only served to inflate the egos and bank accounts of those already well off. This Intel episode should remind us to question any actions where the government shows obvious favoritism towards a specific company, particularly during times of economic uncertainty.
Conclusion: The proposed Intel deal was a troubling example of cronyism and potential market manipulation. It raises important questions about transparency and accountability in government dealings, and how easily self-interest can trump the best interest of the taxpayer. This was a near miss; however, it should act as a harsh reminder of how easily even seemingly well-intentioned policies can lead to disastrous outcomes.
Advice
Be wary of government interventions in the market. Remember, bailouts often benefit the already wealthy, while leaving the taxpayers holding the bag.
Source
https://www.reddit.com/r/stocks/comments/1mtvh1n/trump_administration_in_talks_to_take_a_10_stake/