It's more akin to lending but the issuer generally has the privilege of not paying the fixed dividends when money is not available, instead of the catastrophe of defaulting on a debt instrument.
Also, these dividends can be made cumulative, so that they can be paid at a later time if the money does become available.
I would guess calling the shares “nonvoting” doesn’t really mean anything. The gov’t will be calling the shots.
Allegedly, the government doesn’t have voting rights in my household either, but you see where that’s gotten us, don’t you?
And the government will call the shots like any major shareholder would. But those shots will not involve profit making, but rather the dedication of money to social causes, via mortgages etc. You want solar for your home, going green, no problem , we have an ARM for you!!!But whose leg is it? Our tax money. Thats where the shite hits the fan. Every tax payer should be getting that interest returned directly to the IRS and given as a rax credit to every American who pays taxes.
Now its not nationalization but its politization of Sachs and Morgan. Thats the way fascism works. Not communism. Communists would nationalize them.
Now the government will in years to come, have one more money spigot to tap in order to buy votes, sway the public and ruin our economy before every election?
And those politically favored in the future will get very, very rich indeed,linkage between financiers and government on a policy basis. That out does any lobbying system we had before.
Example?
Senator has son who is starting up a military clothing factory? Want a loan, no problem, daddy makes sure he gets the inside track on a military supply bid, arranges the financing and away we go!
If this happens, this is the kind of linage we will have. An political/economic circus worthy of a banana republic.
Is it better than a crash? Nope. Freedom is at stake.
Its not done yet. It should be stopped. I say let them crash.