Posted on Oct 17, 2015
Is the McDonald's chain too big to fail? Will the government step in and bail them out?
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Responses: 4
I sure as hell hope not. Let it ride on the backs of the share holders.
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They are big, but I wouldn't say that they are too big to fail. The restaurant industry isn't one that employs a major segment of the population, nor is it a major cornerstone of the economy. The restaurant industry is one with high turnover, low barriers to entry, a million and one different niches, and a low HHI. If they go under, it won't make people lose too much sleep unless they work there. If there is a problem, the shareholders will raise a stink about it; hopefully before something really bad happens, and a positive change will be effected.
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Screw bailouts. Nobody gave me money when I was in Hawaii with a payment for a house that I couldn't sell and rent. I thank God that I was able to pay for both and not go bankrupt.
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