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@beckyquick @andrewrsorkin @SquawkCNBC Re Letting Airlines Fail - we do not learn from history:
Having slowly responded and then shutting down the economy based on flawed models about a virus nobody understands, our government compounded not only this catastrophic public health
Having slowly responded and then shutting down the economy based on flawed models about a virus nobody understands, our government compounded not only this catastrophic public health
failure but decades of reckless fiscal and monetary policy failures to infuse $8 trillion (and counting) of new debt into the American economy. In the coup de grace, the Fed announced on Friday that it would expand its lending and bond-buying programs by another
$2.3 trillion to include non-investment grade corporate bonds, real estate investment trusts and municipal bonds. In addition to effectively eradicating the differences between all types of private credit (because when the government is the ultimate purchaser/guarantor of all
financial instruments their inherent differences no longer matter), this unnecessary step was a corrupt back-door bailout of the private equity industry, which was sitting on $300 billion of dry powder at year end.
Let airlines fail and emerge out of bankruptcy, Becky:
Let airlines fail and emerge out of bankruptcy, Becky:
There is no conceivable policy justification for bailing out industries that leveraged up the American economy into the fragile condition that rendered so many businesses (like airlines) incapable of sustaining themselves through a shutdown; the only rationale is the same kind
of political influence peddling that rewarded Wall Street at the expense of Main Street after the Great Financial Crisis a decade ago. The right thing to do is to leave the private equity and real estate industries to the mercy of market forces, not to perpetuate the “head’s I
win, tail’s you lose” (“I” being their executives, “you” being their investors and society at large) that enabled these two sectors to enrich themselves and bury the economy in debt over the last thirty years. These industries could not achieve this, however, without the
enthusiastic support of politicians granting them egregious tax breaks in exchange for campaign contributions, Wall Street, institutional investors incapable of distinguishing nominal from risk-adjusted returns, and the financial media. There is no turning back now. Our economy
is nationalized with the government giving lip service to helping workers and lower income people while showering the real money on the rich and powerful.
