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Old 03-23-2020, 08:38 AM   #61
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Originally Posted by dixonge View Post
You guys seem like you would just rather watch industries burn while toasting s'mores over the fire, even though it would send us into a depression that would decimate your retirement investments and force you to live in a tent in the woods.
I think access to capital is important but by loans not grants. A good example of why we shouldn't bail out business is the Cruise industry. Most cruise ships are foreign flagged in order to avoid US taxes. The networks are global. The staff is global. The customers are global. They might have an executive offices here but that's about it?



Contrary to popular belief.....Corporations are not people.
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Old 03-25-2020, 11:02 AM   #62
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I'm kind of wondering how much of the airline bonds could have been purchased for 50billion? I read that in oct of 2020 United had a net debt of 20 billion. southwest had a debt of 2.5 billion. American airlines has 34bil in debt in 2020.

I seems like the government could have declared it functionally bankrupt.. paid off all the debtors . and not made any of the stock worthless. plus taxpayers would actually own something meaning the assets of the companies if they go under again.

I hope at least some of the money is used to reimburse people cancelling tickets.
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Old 03-25-2020, 11:53 AM   #63
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My feelings about bailouts in general: The 2008-09 financial crisis was caused mostly by companies taking on too much risk. That was (mostly) a free market, where companies who make bad decisions should suffer (e.g, by going under) and those who make good decisions should prosper. So bailouts were a bad thing there, except when they were the only option to prevent the innocent from suffering.


This time is different. The government is making (mostly justifiable in the interest of public health) decisions that are favoring some sectors and punishing others. It's much less of a free market, and companies have much less control over their destinies. I am not expert enough on any particular industry to say how it should be treated wrt bailouts, but I think a different perspective should be applied than was used in the great recession.
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Old 03-29-2020, 01:33 PM   #64
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We’re admonished to run our personal finances as if we are CFOs. Why bail out companies who don’t have even six months of a cash emergency fund on hand?
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Old 03-29-2020, 03:12 PM   #65
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Bailouts (Airlines)

[QUOTE=Markola;2400056]We’re admonished to run our personal finances as if we are CFOs. Why bail out companies who don’t have even six months of a cash emergency fund on hand?[/]

Excellent question
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