Maybe don’t sell it but put the holdings into a big sovereign wealth fund? The wealth fund can rebalance its holdings later, and can work as an infrastructure bank or similar in future to support the country’s ongoing development.
I don't know. Maybe. In general I'd prefer the government to hold debts than assets, especially when debt is so cheap as it is today. I don't want to see long-term crowding out of private investment. I think the investment system generally works pretty OK, except for in extreme circumstances like this.
If the government is going to play kingmaker and choose which business succeed and fail, the profit for those moves should go back to the government, not just the old shareholders.
>I don't want to see long-term crowding out of private investment.
This really wouldnt be that different than Blackrock and Vanguard and State Street controlling like 10% of the market, except the government wouldnt be a passive investor, they would exert some form of control over controlled companies.
It almost seems like cheat mode, for the government to say "we wont let this undervalued stock collapse, watch us save it. now its worth more (naturally because we saved it.) profit."
If you wouldn't buy it you should probably sell it is my motto. The gov't wouldn't pay retail for one of these companies, so they should probably sell it at that price. But if they believe the long term fundamentals are good, they might buy at a distressed price. That's my working theory anyway.
