Warning: Why Small Business Bailouts could Lead to Mass Bankruptcies


Published – April 13, 2020 12:42 am

Let’s talk bankruptcy. Investing & Negotiating.

The real bankruptcy risk to businesses is highly understated. The current bailout programs and systems setup for small businesses, medium sized businesses, and large businesses are highly flawed and risky, especially the PPP.

The PPP (paycheck protection program) could end up being a large scam for employers as employees are incentivized not to return to work thanks to substantial unemployment benefits, building up massive debts for businesses that’s entirely due in 2 years. Yet these loans may not be functional at all.

Ironically though, it’s not just the paycheck protection program. Even programs like the newly announced Main Street Lending program would likely have similar strings attached as for what we are seeing with the paycheck protection program and the airline bailouts. The airlines are already warning that strings attached to the airlines to massive bankruptcies.

Right now, the entire bailout system is a complete disaster. Maybe we need to look to countries like Germany and Switzerland who seem to have things more under control. At least in terms of bail outs. Because this, is unsustainable and could lead to a W shaped recovery instead of the V-shaped recovery or U-shaped recovery we are expecting.

9.2 Total Score

User Rating: 4.59 (29 votes)
Read More
Filter by
Post Page
Politics U.S. Headlines Economics Twitter World News
Sort by

Barack Obama offers stark warning to Democrats during joint fundraiser with Joe Biden

Published – April 13, 2020 12:42 am Former President Barack Obama urged supporters to do more to back


New Warning Of Rare Coronavirus Complication In Children

Published – April 13, 2020 12:42 am There have been nearly 100 reported cases in the U.S. and Europe


China Sends Warning Sign With Taiwan Travel Ban

Published – April 13, 2020 12:42 am China Sends


Georgia reopens businesses despite Trump’s opposition

Published – April 13, 2020 12:42 am Georgia reopens


Small Business Loan program running out of money for small businesses

Published – April 13, 2020 12:42 am Loan program


New York City death toll spikes with revised count

Published – April 13, 2020 12:42 am New York City’s health department has revised its death toll


President Trump Says He’s Halting Payments to WHO

Published – April 13, 2020 12:42 am Apr.14 — President Donald Trump says he instructed


Michigan governor dismisses massive protest as a ‘political stunt’

Published – April 13, 2020 12:42 am Michigan


Coronavirus: Should I wear a mask to stop the virus?

Published – April 13, 2020 12:42 am Feeling confused about whether you should wear a face mask to


Why China Will be the Big Winner of the 2020 Crisis

Published – April 13, 2020 12:42 am This is China, what is still the world’s foremost industrial


China denies accusations COVID-19 was made in a lab

Published – April 13, 2020 12:42 am  China


15 NEW “Pandemic-Created” Business Ideas in 15 Minutes

Published – 03/20/2023 9:32 am 26 million Americans are without a job right now, and that’s just


How To Run A Profitable Business & Make Money

Published – 03/20/2023 9:32 am What are clients really asking when say, “How much does this


Why I Don’t Have A Business Partner Anymore

Published – 03/20/2023 9:32 am How do you find a good business partner? What should you


3 Steps To Starting A Home Business…

Published – 03/20/2023 9:32 am


Teen Millionaires | The kids running successful businesses who say you can too | Sunday Night

Published – 03/20/2023 9:32 am The million-dollar kids – Alex Cullen meets the youngsters with


How To Avoid Key Online Business Mistakes.

Published – 03/20/2023 9:32 am Do you have an online business that is not performing as well as you


Introduction To Online Business 1-2-3

Published – 03/20/2023 9:32 am There are millions of people making a full-time income on the internet


Attracting Web Business

Published – 03/20/2023 9:32 am So you’ve finished building a great website, and you’re


10 Easy Steps For Getting Video On Your Business Website

Published – 03/20/2023 9:32 am I’m often asked, “I have no video training, but I want to


Internet Business Ideas

Published – 03/20/2023 9:32 am These are a few new internet business ideas that I won’t be


How to Convert a Sole Proprietorship to an LLC – All Up In Yo’ Business

Published – 03/20/2023 9:32 am Sole Proprietorship


InfoSearched | News Research & Information