Maybe this is why Buffet sold his DAL and LUV at the bottom.... maybe he gets back in after this effective ownership dilution by the govt is over... he normally holds through or even adds...
Treasury Secretary Steven Mnuchin’s insistence that America’s major airlines partially repay taxpayer funds aimed at shoring up the industry has set up a clash between the Trump administration and the carriers https://t.co/DWhv6FQFwT— Bloomberg Economics (@economics) April 12, 2020
Gov't as racket.
ReplyDeleteShut down business by decree. Lend money with interest to allow them to "survive." Take ownership. Demand payback. This is mafia stuff.
Matt, the American airline industry is heavily subsidized by the government.
ReplyDeleteNo it’s not... the industry has to collect $bazillions in federal fees and taxes...
ReplyDeleteAnd has to pay $bazilliobs in gate fees to the Airports Authority..
I like this bit in the Bloomberg article: “Democrats in Congress have insisted their intent in the law was to offer payroll grants intended to keep workers employed.”
ReplyDeleteSo what do those employees do when no one is flying: man check in desks at airports and deal with non-existent customers? If only Laurel & Hardy were still around: they’d do a good sketch about that.