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It's not just one or two companies. At minimum: all retail, all airlines, all hotels, all cruise ship companies are at risk.
by trimbo 7y ago
It's not just one or two companies. At minimum: all retail, all airlines, all hotels, all cruise ship companies are at risk.
- tarsinge 7y agoApart from paying people to stay at home during the pandemic what's the issue? Why would tourism disappear? Buy the failed airline/hotel, change the name, personnel returns to work, business as usual.
- trimbo 7y agoWho with cash is going to buy all of these businesses and take on their debt? Apple? Microsoft? Some PE firms? Or is your proposal to default on all the debt for those industries and buy the companies in a firesale? Tourism would actually disappear in that scenario...
- mistermann 7y agoThey United Stats Government should do it. They have literally unlimited funds, and this approach would actually be the most consistent with our "capitalistic" economic model. Not that we live in anything approaching a capitalist economy of course, but it would be funny if they were logically consistent for once.
- trimbo 7y ago> They United Stats Government should do it That's what they're doing and what the article is about. [Edit: not buying the companies outright, but buying their debt] The person I was responding to was proposing something else about clever entrepreneurs buying up all of these industries in bankruptcy, or something.
- mistermann 7y agoThey should get equity along with the debt, for those companies for whom this is not merely a liquidity issue. Boeing is an example of such a company.
- dragontamer 7y ago> They United Stats Government should do it. They have literally unlimited funds, and this approach would actually be the most consistent with our "capitalistic" economic model. That's actually called Socialism, when the government buys up companies and starts to own the means of production.
- mistermann 7y agoUnder capitalism, if you go broke, you're broke. Boeing is broke, because the executives took all the cash for themselves via buybacks. If the taxpayers are getting their wallet out, it should be to purchase something. So, they will be purchasing equity in the bankrupt company. If Boeing doesn't like it, they can go pound sand, or maybe the executives could use the money (that formerly belonged to the shareholders) to purchase the shares themselves. Of course they don't want that, they want to have their cake and eat it too, again.
- llcoolv 7y agoIt won't disappear. Just change owners as it was already explained and proven.
- nocorpwelfare 7y agoBecause we're all about to be broke and there won't be any free cash to "go on vacation."
- viklove 7y agoGood, then we should let the industries fail instead of keeping them around as zombies. Mail the employees checks for a year until they can find a new form of employment.