By Alyce Lomax, the Motley Fool
Bailout fever has hit the U.S., and we’re all well aware of how government funds have been propping up entities that are considered “too big to fail,” like AIG (NYSE: AIG), Fannie and Freddie, and General Motors (NYSE: GM). However, the most recent industry to get some government love may be the newspaper industry.
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I don’t believe in bailouts at all and have been staunchly opposed to the government funds directed to the financial and automotive industries. A bailout of the newspaper industry would add insult to injury, though. And there are signs that it may be coming to pass.
Silicon Alley Insider posted last week that Washington state’s governor has approved a 40% tax cut to the state’s newspaper concerns, which certainly implies a governmental “leg up” versus other companies.
Furthermore, apparently some lawmakers may be thinking about loosening up antitrust laws when it comes to newspaper companies collaborating to work on pricing power in online ads — something that brings to mind the very real potential for collusion and price fixing. Fair? I don’t think so.