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After 9-11 and the housing bubble 2017/18 I do not understand why any company does not have a back up fund. None ! You yell at people for not having a few dollars in the bank for emergencies, yet give cooperations a free pass ! Why? So they don’t have to pawn their $15k yacht? Their summer mansion at the Hamptons? Disgusted with our mentality. 50% of Americans problems are big greedy corporations and banks.
After 9-11 and the housing bubble 2017/18 I do not understand why any company does not have a back up fund. None ! You yell at people for not having a few dollars in the bank for emergencies, yet give cooperations a free pass ! Why? So they don’t have to pawn their $15k yacht? Their summer mansion at the Hamptons? Disgusted with our mentality. 50% of Americans problems are big greedy corporations and banks.
Wow, we're in agreement again! What is happening?!
You can't force a business to close its doors and prevent it from conducting business and then complain when they sue the government for relief.
That is a fair point.
However:
(A) Many of these companies have been bailed out before, some of them twice before, some even more than that.
(B) Many of these companies took record profits and instead of building up an emergency fund used it for stock buybacks and then took at loans with all of the cheap money and did more stock buybacks to inflate the bubble that we have. At some point it is the companies' fault for racking up massive debts while having what would have been record profits.
Fully. Airlines would cease to exist w/o a bailout.
This is not a case of modest excess liabilities vs assets. This is exponential. Airlines this month are averaging 4% occupancy. Bleeding billions in cash via huge debt. Many times their annual rate of profit in losses in just one month.
This is true also of anything non-essential in nature. Hotels, restaurant chains, retail chains, are all accumulating massive debt many times their annual profits, this single month.
This is not normal. Most restructured businesses via Bankruptcy have a few x ratio liabilities to assets, recorded over a several year period. This is that ratio on steroids, and any sane Bankruptcy judge would properly, in such cases, force total liquidation.
GM in 2009 would have been bought by a transplant auto maker. The transplants btw, were NOT insolvent. Neither was Ford.
This though is different as entire industries are insolvent, not due to bad management or bad workforces, but events they cannot control.
The US economy was unsustainable for much longer, look at how incredibly low interest rates were, for so long? This pandemic is just the final nail in the coffin. We should never go back to a world like that.
The US economy was unsustainable for much longer, look at how incredibly low interest rates were, for so long? This pandemic is just the final nail in the coffin. We should never go back to a world like that.
Interest rate so low for so long harmed savers and helped borowers. It also harmed savers by making them more vulnerable to stocks. I'm ready for 8% interest rates again.
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