It is an attempt to find the lesser evil... during a period of extreme market conditions.
Do you prefer the company to stop offering the product all together or is it better to just decrease companies market value by 0.1% or 1%, by taking the losses?
Of course I prefer the companies to continue operate by taking losses of 0.1% - 1%. What I don't want is "save the companies at all cost" which happen everywhere in the world by injecting and constantly printing more money. That is not a solution but rather a short term patch!
In my country Greek banks have done massive new capital injections and their shareholders are getting diluted constantly... There is no trust in the system whatsoever and no logic person will ever invest in these banks anymore.
I do not want to have at any point the possibility of BTSX in existence to be 4 bil instead of 2 bil.
The purpose of a bank is to lend only what she can afford to lend. That's it! If the profits of the bank do not allow to lend more then they shouldn't lend more. Do you guys disagree with that?