That article that I posted earlier said this: Up to $50 billion for airlines, $8 billion for cargo air carriers, and $150 billion for other severely distressed businesses. The government has the right to “participate in the gains” of any business it lends money to. That's where I'm getting the idea that it would be in the form of loans. The reason to hold equity hostage is the government is taking on risk if these businesses fails. It gives them some control of operations (as it did with the banks), and it also ensures that taxpayers can make a profit if things go well from taking on existential risk for the companies. It's a risk/reward situations - federal government taking risks on bailouts without "punishing" the companies in some way isn't going to sit well with the public.
Loans always have risk, but that is covered by US Govt having first right at bankruptcy court liquidation. This is flat out not a 0% Bridge Loan. This is a Loan requiring equity stake. So that would make 4 options, I guess: A standard 0% Bridge Loan...US Govt gets 1st dibs on bankruptcy court liquidation Pure Cash bailout Bridge Loan requiring equity stake for profits Cash bailout with equity stake for profits #1 should be an option, and companies shouldn’t be forced by a greedy govt trying to put equity stipulations on emergency loans, because these companies are not cash-poor atm, and should be able to ask for just a pure Loan.
You're ignoring the political side. The American people don't like bailing companies out, regardless of the reality of their circumstances. That's the reason for being harsher. Banks weren't cash poor either - they were insolvent on paper (partly due to accounting rules that didn't work in dysfunctional markets), but not at all in practice.
The American people have never seen anything like this tsunami that's heading towards us. It's going to be so, so bad I pray I am wrong. And im pretty atheist
I'm watching Face the Nation right now and they're reporting that the airlines are going to run out of money in a month. I understand that people don't like seeing corporate bailouts and that the airlines were one of the worst regarding stock buy backs rather than saving and making more investments in their workforce but the airline industry is critical to not just our economy but our culture. Also even with closed borders and social distancing we still need to move people and materials rapidly to address this crisis.
That's a lot of bread...taxes are gonna have to be raised at some point. Financing programs for businesses hit by the coronavirus could amount to $4 trillion, Mnuchin says https://www.cnbc.com/2020/03/22/mnu...rom-fed-and-treasury-could-be-4-trillion.html
People on social security are not taxable below certain incomes so they would be a part of that group not having tax liability. Strange though, this is a group of people that would typically really need that extra $600.
People on social security aren't losing their income, though - they aren't the ones in crisis from the economy shutting down. For those that do still work, they'd have taxable income and would get checks or unemployment payments. We have to remember this crisis is hitting different groups very differently. People with salaried jobs and people on government income should be essentially doing fine, relatively speaking. They don't need rescue and their money will actually go farther because there's nothing to spend it on anymore - by not going to restaurants or travelling or whatnot, people are accidentally saving money. It's the people being laid off or having hours cut that are in a mess - those people and the related businesses are where all the focus should be.
""> So how does this work? So companies can "Audition" and "Lobby" for the money for 6 months Or Cut out the middle man and put the money directly into their own companies? Rocket River
All he’s ever tweeted has been blaming the government for the last ten years. These assholes need to burn without takng everyone else down with them. Their stupidity is as contagious and hidden as the Coronavirus
They are still trying to hide the truth to protect their negligence..... This is the time for straight up facts, and we have a leader who lies about everything can't help himself because he is a chronic liar. Ugh. DD
I’m with you in spirit DD but IMO , focusing on trump hurts more than it helps . Yes he has the most powerful office ... but this isn’t a failing of a leader ... it’s a failing of our Leaders. Multiple people could have stepped up at any time . This is not a dictatorship . Instead both sides are fighting for political power , both sides putting part ahead of country . even tho I feel the Republicans are worse (what can you say I was brought up in a dem household) the Dems engender no trust from me either . it’s gonna fall on local leaders to get communities through this I think Houston has a good one in Turner , hopefully the city doesn’t turn on him .
I don't understand why more people aren't listening to Peter Schiff. Peter is most well known for predicting the 2008 Financial Crisis at least 3 years ahead of time. Everything from Fannie Mae and Freddie Mac to the mortgage crisis to exactly what the government response would be. But what most people don't understand is 2008 wasn't his actual prediction. He's predicted something much, much worse. His book "The Real Crash" tells us everything we need to know.
It hits us twice. First we're already running more than a $1 trillion deficit per year, which means we spend $1 trillion more than we take in via taxes. All of these people who are suddenly laid off are no longer paying taxes, but somehow we've got to come up with money to pay them unemployment insurance. I think we're headed towards massive inflation, or God forbid hyperinflation.
