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The airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense.
by mathattack 7y ago
The airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense.
- 0x8BADF00D 7y agoExcept there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.
- zukzuk 7y agozerohedge.com is leaking again
- allovernow 7y agoZerhoedge has also been a month ahead of the media with respect to coronavirus reports. The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.
- bdcravens 7y agoEven a broken clock is right twice a day.
- SirYandi 7y agoYet useless for telling the time
- hk__2 7y agoThat’s precisely the point.
- allovernow 7y agoThey've been posting summaries of published literature out of China in real time.
- dehrmann 7y agoAnd a clock three seconds fast is never right.
- hilbertseries 7y agoIf you doomsay about everything that could possibly cause a crisis, you may eventually be right about one of them causing a crisis. Does it make their articles in 2018 about how the economy has about to collapse more accurate?
- allovernow 7y agoSummarizing published literature out of China with estimates for R0 and CFR is not doomsdaying. CNN and Fox also misrepresent news regularly - that doesn't mean they have nothing useful to report.
- seppin 7y ago> The fact that ZH speculates about conspiracies does not mean that everything on their site is BS. It's exactly that reason why they are a useless source for information.
- refurb 7y agoIndeed. Anyone who follows zerohedge has probably noticed that the economy was on the brink of collapse every single week of the past decade. I do follow zerohedge since they often report on things others won't, but I take their analysis with a grain of salt.
- humaniania 7y agoThat site is so cynical and toxic. I regret giving it any significant amount of time. WallStBets reminds me a lot of it. Lots of manipulative content.
- mathattack 7y agoRight now rates are very low.
- bdcravens 7y agoThe article is about rules in Europe.
- cinquemb 7y ago>When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. As long as the dollar denominated debt outstanding continues to dwarf the amount of dollars in circulation (claims on future dollars far exceeds the amount of dollars that exist), I don't see the dollar collapsing. Interest rates can also rise due to credit risk. Fake interest rates set by FRBNY cant fix credit risk, they cant make corporations/goverments with severely stressed/ no cash-flow solvent. > The government will be forced to cut spending This is the usually the opposite that happens during credit busts, they increase deficits. If you doubt a governments ability to generate cashflow, then one should worry. > and there will be no bailouts this time. For whom? Some banks merely have to go to the discount window and keep rolling over their loan with any illiquid asset they have as collateral with FRBNY, JPM is doing this now[0]. A few other banks[1] can go to the FRBNY repo market for either a daily/term bailout with their rehypothicated UST/MBS collateral at fake interest rates. I'd be more worried about the corporates (and the assets they may be holding that will have to get liquidated) who were engaging in bank like activities without the access to these facilities. [0] https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-eyes-plan-to-tap-fed-s-discount-window-to-break-stigma https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-... [1] https://www.newyorkfed.org/markets/primarydealers https://www.newyorkfed.org/markets/primarydealers
- onlyrealcuzzo 7y agoWhat corporations are engaging in bank-like activities without access to the mentioned facilities??
- cinquemb 7y agoAnyone you can think of that's not on this list: https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20190723_FRY15%20Snapshot%20Indicators.csv https://www.ffiec.gov/npw/StaticData/Y15SnapShot/20181231_20...
- reaperducer 7y agoThe airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense. Yep. The same airlines that today are crying because of their "razor-thin margins" are the same ones that recorded billions of dollars in profit just a few months ago.
- koheripbal 7y agoAirline margins are highly cyclic. Making "billions" in one month, might be countered by huge losses in the next. Evey yearly numbers don't tell the full story - you have to look at multi-year trends in profitability. ...and, indeed, they aren't great for the industry as a whole. Most nations operate a national carrier at a loss.
- p_l 7y agoOne of the biggest signals is always the price of fuel. You need a ton of signals to actually interpret the condition of an airline.
- refurb 7y agoJust because profits are measured in the billions doesn't mean that they aren't still "razor-thin".
- bogomipz 7y agoYes and if we look how they have behaved in the US since the tax payer last bailout them out one can note they have: Began charging for basic provisions that used to be included in the ticket price Began cramming people into narrower and more uncomfortable seats Added yet more fees Reduced the frequency of flights on many routes so planes are more crowded Fought to keep foreign carriers(competition) out of the domestic market