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Banks & airlines - will be in the bread line
jecornel
Member Posts: 9,726
in Tug Tavern
No one likes the people who soak the entitlement system.
But it will be the big boys asking for a bailout first! Corporate wellfare at it's finest!
https://www.nytimes.com/2020/03/16/opinion/airlines-bailout.html
But it will be the big boys asking for a bailout first! Corporate wellfare at it's finest!
https://www.nytimes.com/2020/03/16/opinion/airlines-bailout.html
Comments
Airlines will bounce back eventually -this is 9/11 on a broader scale. They can withstand a 60 day'ish kind of slow down quite easily.
Cruise lines are fucked. That industry is going to be as dead as film photography and fax machines. The ripple effect will fuck over those countries reliant on tourism - which is too bad because places like Barbados and Puerto Rico have some fine trim that deserves cultural exposure.
You have to bail out the airlines and banks, but you should force the boards and executives to take a bleach bath by crashing the stocks. Same with Boeing.
Unfortunately they won't do that because of the stock market. But its not like people own banks and airlines in their 401Ks...
Hell no.
Also, Bezos and Trump need to bury the hatchet and get some shit rolling relative to distribution. Amazon is the best in the business and the gubmint doesn't know shit about how to do it efficiently and quickly. Not saying to Nationalize Amazon, don't twist - but Amazon can be the Ford of WWII time pumping out military vehicles and shit.
USA! USA! USA! We can do this shit.
We need to start hiring analysts on Wall Street who factor in their analysis of "buy, hold, sell" recommendations SOME FUCKING IDEA about their fiscal house being in order. That should include a rainy day fund.
I get it. Retained earnings should be used for growth or for distribution to shareholders. I've been listening to the calls and editing the press releases for 25 years.
I'm not one for more regulation generally, but there should be a new SEC disclosure requirement to join the pile of information that the SEC already requires that lets shareholders know how long their company can run in the event of a severe economic downturn.
Companies should be evaluated the same way we evaluate people. Risk Factors in the 10-K ought to include something like:
"In the event of a severe economic downturn and significant loss of revenues, our cost structure is such that we would have to get on our knees and give the federal government a blow job so we could collect tax revenue to keep us afloat. Otherwise, we'd fail."
The fuck. Manage your costs to contemplate shit like this happening periodically. It goes entirely against the rules of monopoly that we just reach into the box and give you cash because you landed on Park Place with three hotels and just don't have any money .... because you've had a bad game and we want you to keep playing.
Boeing still dealing with their software issues on the grounded fleet. That's a big boy bidness. Better figure that shit out. Should have been resolved by now, and now this, the double whammy. A gloriously successful American company on its knees. CEO should be shit canned for cause ... no executive severance.
So they shifted compensation to stock options thus joining the mythical shareholders in demanding quarterly profit over long term health..
It is now a perfect storm of doing everything for the daily stock price and nothing for the health of the company, which can be broken up and sold off anyway
There are shitloads of risk factors in every filing -and those are mostly CYA as a means of legal swindling from dumbfucks who invest greedily and lose everything - but your blow job disclosure is pure securities language brilliance. The next S-1 I participate in, I'm gonna sneak that shit in there and see if anybody reads it. And then cross my fingers the company goes down because that would AWESOME to watch some of these egotistical CEOs have to suck cock on some old man who lost everything.
I'd also cap the fuck out of executive pay relative to median wages at a company. Put in some upside trigger events so they can still make a fuckbutt of money - but somewhere along the line, the whole concept of a 'good' corporate citizen has been misplaced by quarterly earnings targets and share price. The great Adam Smith stipulated people behave in their own self-interest. Look no further than the C-level on how that plays out.
Christ, I'm becoming a socialist. I better not start having wet dreams about Elizabeth Warren....
In the beginning was the Plan.
And then came the Assumptions.
And the Assumptions were without form.
And darkness was upon the face of the Workers.
And they spoke among themselves, saying, "It is a crock of shit, and it stinketh."
And the workers went unto their Supervisors and said, "It is a pail of dung, and none may abide the odour thereof."
And the Supervisors went unto their Managers, saying, "It is a container of excrement, and it is very strong, such that none may abide by it."
And the Managers went unto their Directors, saying, "It is a vessel of fertiliser, and none may abide its strength."
And the Directors spoke amongst themselves, saying one to another, "It contains that which aids plant growth, and it is very strong."
And the Directors then went onto the Vice Presidents, saying unto them, "It promotes growth and is very powerful."
And the Vice Presidents went unto the President, saying unto him, "This new plan will actively promote the growth and vigour of the company; with powerful effects."
And the President looked upon the Plan, and saw that it was good.
And the Plan became Policy.
This is How Shit Happens.
Buybacks in the public company context is different. Again, I understand the economic justification. You're buying yourself at a discount. But that value can be wiped out by the market, for completely unrelated reasons, in a moment's time. A vapor.
If you distribute that $$ to me in the form of dividends, it's mine. I can use it however I wish. I don't know. I know the kids at Wharton would tell me it's the same - value delivery to shareholders - but if I had a choice, I would always take the cash in the form of dividends, and drop the stock buyback shit. I've never been a fan generally.
Said "we're going to help Boeing."
Again, not sure there's a choice here, but there's also something to be said for corporate Darwinism. We have a system and a philosophy, but with huge, huge exceptions.
Again, Boeing's CEO's head should have rolled a long time ago. I'm sure they would scream "But but the FAA!". Well, sure.gif. But you put yourself in this situation.