I finally grok the Republican party. It's only socialism if it helps the poor. Government handouts to corporations and trade protectionism? Mainly helps the rich, so it's not socialism. Tax money spent on a special interest program? Again, if it mainly helps the rich (or their party's base), no problemo. They're the Kleptocracy Party.
U.S. government takes 10% stake in Intel
241–250 of 765 posts
Re: U.S. government takes 10% stake in Intel
#242> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company > The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?
The clearer picture comes from Reuters[0], as usual:
>The government will purchase the 433.3 million shares with funding from the $5.7 billion in unpaid CHIPS Act grants and $3.2 billion awarded to Intel for the Secure Enclave program.
So the same playbook hes taken across the board: cast aspersions on leadership, withhold duly appropriated money in contravention to the law. Rinse repeat.
[0]: https://www.reuters.com/business/trump-says-intel-has-agreed...
Re: U.S. government takes 10% stake in Intel
#243Ironic, Western politicians thought opening up to trade with China would lead to it adopting a Western model of government. Instead it's lead to the USA adopting the Chinese one.
Western governments have taken a stake in, nationalised, or owned / operated corporations for a very long time! Some examples: VOC, BBC, national airlines, etc. List across countries: https://en.wikipedia.org/wiki/List_of_government-owned_compa... US specific: https://en.wikipedia.org/wiki/State-owned_enterprises_of_the...
Most of these were done under duress or specifically for public goods (BBC, for example).
Taking an ownership stake in broad daylight for political favors is very much unprecedented in the modern economy.
Re: U.S. government takes 10% stake in Intel
#244Earlier quoted context omitted.
I think a better rephrasing is "government is giving $8.9B from the CHIPS act in exchange for a 10% stake in the company"
Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I think that's a fair assessment given that these grants were already supposed to be paid out to Intel, without any kind of equity stake promised. Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Samsung, TSMC, Micron and others were granted similar funds without any kind of wit…
> Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant.
So far...
Re: U.S. government takes 10% stake in Intel
#245At least in 2008 there was a financial crisis. This feels like somebody has stock in intel.
Re: U.S. government takes 10% stake in Intel
#246Ironic, Western politicians thought opening up to trade with China would lead to it adopting a Western model of government. Instead it's lead to the USA adopting the Chinese one.
Kinda. But I think the current Chinese model is actually much closer to how the USA used to work when there was competition with the USSR. Closer than the US of today compared to the 70s and 80s.
The current Chinese model's basically you have fully publicly traded companies, companies who are either minority or majority owned by a certain provincial government and ones who are either minority or majority owned by the central government (although this is surprisingly rare outside of key areas like telco/banking)
Re: U.S. government takes 10% stake in Intel
#247Re: U.S. government takes 10% stake in Intel
#248Ironic, Western politicians thought opening up to trade with China would lead to it adopting a Western model of government. Instead it's lead to the USA adopting the Chinese one.
Yeah, this so weird coming from the US. The US government has a history of writing no-strings-attached blank cheques to people/companies just so avoid the stigma of government control in public companies. I wonder how the markets will react, will stocks go up because people will assume Intel's going to be a government mandated champion or will they go down because of the negative connotations government control bring…
Name one literal no-strings-attached blank cheque to a large company in the last 20 years
Re: U.S. government takes 10% stake in Intel
#249Earlier quoted context omitted.
Yeah, this so weird coming from the US. The US government has a history of writing no-strings-attached blank cheques to people/companies just so avoid the stigma of government control in public companies. I wonder how the markets will react, will stocks go up because people will assume Intel's going to be a government mandated champion or will they go down because of the negative connotations government control bring…
Name one literal no-strings-attached blank cheque to a large company in the last 20 years
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Re: U.S. government takes 10% stake in Intel
#250Capitalism with Chinese characteristics