Against the example of the U.S. Government taking a 10% stake in Intel, a private technology company who manufactures microchips, Commerce Secretary Howard Lutnick outlines the parameters where the Trump administration would consider taking a stake in private sector companies.
Secretary Lutnick notes that when a company comes to the U.S. government for assistance or benefit, the government -ultimately the taxpayer- should gain an equity stake in that company. WATCH:
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Posted in Banking and Finance, Big Government, Donald Trump, Economy, President Trump, Trade Deal, Uncategorized, Wall Street
Howie reminds me of the sham wow guy… and I always grab my wallet when he speaks because he’s always selling us something.
I don’t agree with the gubmint owning any part of anything or giving taxpayers money to private businesses for any reason.
If they’re going to do the latter anyway & they’re concerned about taxpayers well-being, make it a loan at the prevailing interest rate with a term. Not ownership, not a grant, not a gift not a subsidy, a loan. Repayment goes back to the treasury.
SoldiersMom: I agree with you.
And, I -dis-agree. First of all, “semiconductor manufacturing” is a vital industry. Second, it is very error-prone and expensive. If a private industry either seeks government assistance or the government seeks involvement for national security purposes, the government as an investor should gain a commensurate amount of voting stock to safeguard its interests. (“Substantial investors” often require this. In exchange for your money, you have a say. So, this is not an unusual requirement.)
Good points, especially considering national security perspective. As a taxpayer for my 77 year life time most of what I receive from the government is not desirable. I support this type government involvement in very limited cases/industry…bill
Then give a government contract, and don’t acquire ownership.
Totally agree, Val. Once this hook is baited it’s game over.
At first I loved Lutnick especially for his support for President Trump. Later, he became more of a used car salesman especially pumping the tariffs. Bill Ackman a billionaire hedge fund CEO and major donor to President Trump publicly accused Lutnick of trashing the stock market after his firm Cantor Fitzgerald unloaded it’s stock portfolios in February and bought bonds. Apparently they did exactly what Ackman said!
Bill Ackman must have lost money
I like Howard Lutnick
he is a good Trump admin soldier
That’s why you are on a forum posting comments and he’s a legit businessman, who is now in government trying to save the industrial sector of our country.
SoldiersMom – Salute to you, and thanks for calling this out. Privatization in many forms, including Public Private Partnerships (P3 financed businesses) should be either soundly shunned, or properly scrutinized by anyone proposing to be MAGA.
Private ownership of public assets is the essence of Socislism/Communism.
The issue at stake with Lutnic’s proposal, which I believe makes it worthy to compare with P3s is the deception behind his sales pitch: Combining the strength of government oversight with the strength private enterprise to jumpstart a corporate venture. Seems like a good idea on the surface. The problem with Lutnic is that his brainchild is going to grow up fast ‘n furious[ly] into a “grafter”. This type of business arrangement is still unconstitutional in most states, and there’s a reason for that: it cuts at the core if what our founding fathers envisioned for a market economy.
Exactly. Huge mistake. What will demonrats do with this approach if they get back in power? Meter your life in every way.
I agree with you. Even though the motivations of this Intel deal might have been good, it is not a good precedent to set. It distorts the market.
We need help to get the government OUT OF tampering with the market, because every time the government interferes with the market it damages price discovery. It has led to such outrages as the government (i.e) the taxpayer ending up liable for bankruptcy of large corporations or banks. This should never have happened and we The People need it to stop, not encourage it.
All that said, I do know President Trump is overall arranging the country’s finances brilliantly.
I agree with you, and I’m wondering if perpetual govt contacts that are miss spent are worse in the long run. I’m thinking about Boeing.
Newsom’s WH lock’s in ownership of MSM, Cable, Alphabet, Meta, FB, dildo makers and Cracker Barrel.
95% of businesses were closed in California during lockdowns… Newsom even closed the beach!!… but Newsom the owner of PlumpJack Wines allowed wineries to stay open.
Not a Newsom fan by any means, left the state because of him but your info is a little off. Agriculture businesses were allowed to stay open because they are essential, wineries are part of agriculture.
I said, way back in 2017, that Trump and his MAGA philosophy was borne out of a businessman mindset and we wouldn’t always be happy with his approach.
Now we have Trump taking a share in businesses. We have his support for H1B1, for allowing 600,000 Chinese spies into colleges, getting mineral rights in Ukraine, and probably a hundred other examples we could come up with.
This is the meaning of MAGA to Trump.
Why are you even here
Concern trolling.
You mean he didn’t do any of that?
Yeah. Sounds like Jane has been smokin’ a crack pipe with hunter. Go away please.
I doubt a lot of this will actually happen. However your concern is noted.
Trump was an imperfect President during his first term in office, and only the self deluded expected him to be a great deal different this time. That said, he’s daylight compared to any of the alternatives and probably the most “for the people” (in the sense of teaching a man to fish) in my not so short lifetime. There’s also the possibility that a number of the specifics you mentioned are “carrot and stick” tactics. Business is done by engaging and trading value.
That is the sad part, the best America can do currently seems to only exceed mediocre level on its best moments.
Waiting for that 1400 page omnibus (read: pork) bill to drop before Christmas, while Trump establishes more precedent of having ad-hoc decrees written into EO. (e.g. you mean to say out of 1400 pork bill pages, someone cannot add a paragraph to sign by congress about flags?) Silly stuff likely meant for entertainment purposes only. The pork bill will not be entertaining though.
I tend to agree. Have supported Trump from the beginning. Some decisions lately perplex me, like the 600,000 Chinese students, while the Chinese are still buying up farmland near our military bases. When asked Trump says he and Xi have a great relationship. That doesn’t quite cut it for me.
Kind of a slippery slope to me. This really is the definition of Classic Fascism! More than the treatment and politics the left has been yakking about. This is the government gaining control of the means of production. I see no good side to this at all. Natural job growth, increased tax base, technology development/spinoff are all traditional benefits of government/industry collaboration. Tax incentives, infrastructure enhancements (roads, bridges, airports, etc. are some legit examples of government support for business. If you want more of something you tax it less. But direct involvement in the board room and day to day operation smacks of what Uncle Russ and the boys spent a few years in Europe for and it wasn’t for skiing and sightseeing.
It’s 10% today and 90% next year! Talk about the camel’s nose in the tent. Not only no but hell no! This ranks right up there with 1st and 2nd amendment you don’t mess with unalienable rights. just look at what has happened to our 4th amendment. Do you really feel as “Secure in your person, papers and positions” as our grand parents did after finding out how Obama and company trampled over them for political gain?
If the government has extra money to invest just reduce my taxes and let me invest it. Sure wish I could have invested my social security over the years.
Just my thoughts I suspect I’m swimming up stream on this one!
I share your concern. OTOH, take a look at what the profit motive has done for projects like the F-35. Maybe we could do better. I think the distinction between private and public, government and corporation died a death of a thousand cuts long ago…
Swimming with you. There is cause for concern woth the government being in the board room and so forth.
What happens when companies re-organize or merge with others, or go bankrupt?
Wishing I had a suspicious cat meme to insert…..
Your not even in the right stream!
Constitutionally, I agree. I don’t see this being a function of government. Joseph kinda did this in Egypt, basically forcing government ownership of everything because a famine impoverished everyone. That allowed short term survival and kept many alive, but long term, not so lovely when a non-benevolent Pharaoh came in.
I guess people are assuming that this business will be profitable for years to come. What happens if it’s not? It’s tax payer funded.
Here’s what I find fascinating. President Trump hates J. Powell because he won’t lower the interest rates so… a convenient criminal referral is provided to the DOJ on Powell lying to Congress about the Federal Reserve building. Trump then tours the facility with Powell and brings up on camera another $600 million for a building that was completed in 2019 (Murphy bldg) under Trumps Presidency and Powell called him out on it. Then, on August 15th, another criminal referral miraculously arrives for a Fed Governor (Cook) who then is fired before any due process of law occurs.
This gives President Trump a majority on the Board of Governors who will decide in Trump’s favor. This is exactly what President Roosevelt did way back in the day when they changed the independent Federal Reserve to a quasi independent Federal Reserve it is today.
You can hate the Federal Reserve all you want, I don’t care either way. President Trump through the Treasury (Bessent) is going to swap the long term debt for the short term debt. Clinton did this in 1995, Secretary Yellen did this last year as well. Interest on the debt continued going up.
Milton Friedman already told people back in the 70’s that politicians are to blame for our inflation by borrowing and spending. President Trump will not be in office when the interest rates begin to rise as they most certainly will. Stablecoin will give the power to the banks to sell the debt for a stable coin.
Believe it or not, I respect President Trump and what he has to deal with, politicians who lie everyday to all of us and I personally would not want his job.
Just get out of debt if you can.
President Trump is America first.
Powell is not.
I would agree to anything President Trump
does to get us out of this financial hole that
no one ever talks about LOL
Backdoor slavery explaination of “We’re the government and we’re here to help you”, if you want it or not.
government and business industtial complex – beware!
Will 10% today become 90% tomorrow?
Did 7% income tax in 1913 b3come 30% and capital gains tax rise to 70% in the 1940’s? I know the war and nobody paid that amount but yeah. There is nothing the government desires like more of your money!
I disagree.
The one thing ALL government has desired more than your money is your freedom.
Need to send those 600g foreign students back to China. Like now. If the only thing bringing them here is a bunch of indoctrination camps passing as higher education, then let the unfit fail.
Mr. Lutnick has been a staunch supporter for MAGA and we all owe him a vote of thanks for his outstanding contributions. The Chips Act was nothing but a raid on the Treasury so the President is doing whatever he can to salvage some funds out of that stupidity. This is no “slippery slope” nor some sort of “socialism” effort. Call it what it is…it is a “salvage operation.”
a “salvage operation”
nicely put
Government and corporations getting in bed together. What could possibly go wrong? What happens when Gavin Newsome and a communist regime get their tentacles on these corporations? If ever we needed a wall of separation it’s between government and corporations.
See Italy in the 1930’s.
Of course it has never happened before.
Love it!
Good.
Why not?
Govt supervision of these companies who might stela/leak intel to foreign entities
And why should’nt the US get a share of the profits?
Trump will use this money for the benefit of Americans and to reduce the deficit
If the EU wants to buy US made weapons, why should private companies benefit from it with their CEOS pocketing millions?
The only problem like that theory is the EU doesn’t have two nickels to rub together. If you read the Treehouse on Germany you will know how bad the financial situation there has become. They will gladly have us supply but like after WW2 we will never see a return.
O/T
Cracker Barrel scraps new logo, and goes back to old logo after social media backlash, according to a new statement.
“We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our “Old Timer” will remain. At Cracker Barrel, it’s always been – and always will be – about serving up delicious food, warm welcomes, and the kind of country hospitality that feels like family. As a proud American institution, our 70,000 hardworking employees look forward to welcoming you to our table soon.”
https://nitter.poast.org/Osint613/status/1960476147998974376#m
But do they serve Bud Light ?
Your comment is probably the most cogent on this whole thread. Thank you very much!
I am sure that a lot of those 70,000 hard workers will not be looking for other oppotunities now.
Looks like Benito Mussolini and his corporatism may not be dead after all.
I understand the philosophy. I don’t agree with the execution. The government shouldn’t own companies or be part owners. That is what happens in Communist countries.
its voluntary, don’t ask for the money…simple You can have some cake but you can’t eat it
I would generally agree with that sentiment except for the National Security implications. Government already owns businesses as it is. The censorship regime imposed by the Biteme regime aside from the sympathetic participation of the tech ceo woketards had a decidely “nice business you have there, be a shame if something were to happen to it/
I cannot believe Trump (and Lutnik) are giving away millions of foreign student visas, while our kids cannot afford a university degree, and have to endure race and financial wealth selection criteria to get a STEM degree from an accredited university.
If, according to Trump and Lutnik, many Universities will not survive without foreign payments, then maybe the cost of education should be equitable to the middle income family affordability in US. Rather than pumping grants into these conniving blackholes of academic globalism.
By way of a comparison while we bombed the Iranian nuclear sites there are 20,000 Iranian students each year attending the most prestigious colleges universities and medical schools in the United States. It seems like nothing stands in the way of business not even war!
Will we sell them the rope they wish to hang us with ?
Lutnick doesn’t look like Mussolini. Lutnick speaks in English rather than Italian. He doesn’t have a chest full of medals. But he sure makes me think I am listening to Mussolini.
What happens if we agree, as conservatives, to allow the government to buy or take or negotiate stakes in our private corporations and the Democrats get back in control? This is very short sighted.
Let’s shrink government, grow the economy, pay down debt. This will not end well.
Now we see more overt steps toward neo-fascism, a blend of classical and “inverted” fascism.
Trace the major US trends forward. What appears to be the future end state?
A neo-fascist state, maintaining a facade of “constitutional republic” but in reality woven with “soft totalitarianism”, integrated with a “multi-polar global governance” likewise controlled.
Where the classical totalitarian controls including terror and incarceration are replaced with a simple control system: Either comply, or get locked out of everything necessary to live including the monetary system.
Enabled by the 100% surveillance and controls being finalized, justified for “National Security”, supported by Trump.
Some warned that CBDC was a digital currency surveillance and control mechanism, but in the US it appears the GENIUS Act has been used to pretend this won’t happen, while quietly laying the groundwork for neo-fascist government surveillance and control of digital currency anyway.
How’s the water temperature in the pot?
At least we still have “diversity”:
https://www.umesc.usgs.gov/terrestrial/amphibians/armi/frog_calls.html
The “Number of the Beast” system.
Anybody remember Chrysler?
The more I think about this the more it stinks. Taking stakes in companies but not voting the shares. Government does not need to vote the shares the regulators will enforce the direction the government wants to take. We can name many huge government “loans” that turn out to be big scams. Government needs to quit trying to pick winners and losers.
I do not agree with our government owning any share of private companies.
Although the intention is good in this case
it sets a precedent for evil doers to you know – do their thing.
I did a bit of noodling around and it seems that the Federal government can own stock in a private company.
Here is an AI overview.
AI Overview
Yes, the U.S. federal government can own stock in a private company, though it’s rare and typically occurs under extraordinary circumstances, such as during the 2008 financial crisis or to protect vital national interests, like ensuring a secure supply of critical technology.
MAGA POWER
You wanna know what fascism is??? THIS right here. Govt ownership or “stakes” in companies. Ask yourself HOW would you react if this came out of Bernie Sanders mouth?
Businesses use the roads, railroads, and waterways that the government built and/or developed using taxpayer money, so we should get a stake in all those businesses? Remember when the communist in chief 0bama declared, “You didn’t build that?”
I don’t trust the government, and I sure as heck don’t want government employees involved in business decisions. Haven’t they proven their incompetence enough?
Mission creep is a very real thing in government. Today, it’s 10% and silent ownership. Tomorrow, when the socialists inevitably regain control, we’re going to get Pocahantas, Schiff-face, and AOC on the board of directors of Intel. No thanks!
It should not be forgotten that the money was a Biden thing that was going to give the company 60 billion for nothing. President Trump turned it around so that the taxpayer could get the 60 billion back. So, perhaps future stuff like this should not be done, but if its an already done deal than personally I thank President Trump for insuring the taxpayer gets a return.
This and importing 600k CCP spies is not what I voted for.
Is that the roll of the government? I don’t trust big government, they already are in every aspect of our lives and have access to all our money and information. I don’t trust this at all. Is it another sounds good with an alternative motive?
INTC is not a “private company”…it is a “public company.”
If we have a ‘stake’ in a company, are we also on the hook for its liabilities?
And is the government going to be able to be impartial in issues regarding regulation and such, affecting this particular company and its competitors?
I am leery about this.