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Originally Posted by golfing eagles
Equally ridiculous. I own stock in General Motors. As a part owner, if GM goes bankrupt, I should be forced to use my retirement funds to pay off their debts??? That idea would go over like a lead balloon.
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But didn't you kind of already use your own retirement funds to pay off their debits? If you bought 100 shares of stock at $300--and the stock craters to $2 per share....They used $29,800 of *your* money to pay off their debts.
I understand publicly traded companies may be a bit different-stockholders enjoy the profits and suffer the losses. A private company the owner (be it one person or a family trust) enjoys *all* the profits.
If the Suleiman family (a private company) decides to experiment and go "outside the bubble" and they purchase land beyond Eastport--build (and finance) a new restaurant--and the restaurant goes bust because of their unlucky decision; should we still expect the family to make good on payments to builder, bank, suppliers, contractors, and employees?
Or can they just say "Sorry-soft opening. We are declaring bankruptcy for *that* restaurant." Our would we expect them to step up and do the right thing and use family money to pay off their debt?
It would be opportune to borrow money and keep just the profits but declare bankruptcy anytime you have losses.
I wish Vegas casinos operated like that...LOL