So your ok with the "leader" of this crisis trying to spin it to gain political favor still? Is there a time when we ask politicians to stop currying for votes..
And actually put people at risk first? or no?

What's concerning though to me is how large they are and yet how quickly they signaled a need to be bailed out. While we're certainly in the early stages of the economic impacts of this whole ordeal, they very quickly reached a point of "needing to be bailed out". Kind of strange, and if they hadn't spent so much cashflow on stock buybacks, they'd be better-suited to weather this storm.

I'm out of my depth when it comes to the details of economics, but I know many are calling for any financial aid to airlines to either involve loans, prohibition of bonuses/CEO payouts, and/or the public owning stock in exchange for the money. It'll be interesting to see how this all plays out.

This post was edited by Handcuffs on Mar 24 2020 04:18pm

Nintendo

Can someone ELI5 what the Senate Republican rebate for individuals means? I've tried to Google "rebate", but I'm still confused exactly what a rebate is in this context.



This post was edited by Handcuffs on Mar 24 2020 04:28pm

Looks like Democrats have backed off some of their more controversial things, like the $15 minimum wage, and are now attempting to ensure there is oversight for companies receiving the money. Ya know, so they don't give the board or CEO giant bonuses while the business had to be bailed out. I don't think anybody should have an issue with at least that much.

This post was edited by Thor123422 on Mar 24 2020 04:31pm

Companies that large have finance departments that have budget models that can predict with ease how fast they will run out of money. You don't go begging for money 3 days before you have tens of millions of debt obligations due, you do it well ahead of time. The longer you can operate without seeking to raise debt the more leverage you have in raising debt and getting favorable rates in private markets.

If you don't reward your stock holders they are less likely to invest in your company, it's quite simple, that's why buybacks happen. If you can't raise capital by equity (the stock market or privately) you have to go raise debt, which is more expensive usually. If you can't raise that money, you can't upgrade your fleet of planes to more efficient, safer models. You can't expand operations or grow.

I find it troubling that people don't really understand such realities and instead go for really low iq explanations and try to scapegoat something or someone. It's the way the world works, not only here but globally. Yes the system is a house of cards but consumerism is just as guilty as the profiteers.

Gubmint cheese only up to the amount you paid in. In other words, they mean that poor people who pay little to no income tax would also see no rebate. It means that even though they're losing work in fast food and other shuttered industries, they won't be getting a bailout. The bailout is generally tailored to the middle class under the Senate and House proposals. The poor get fucked.

This post was edited by Santara on Mar 24 2020 04:36pm

No shit. I don't know why they thought that was a good idea. It doesn't even improve their negotiating position. It would be like Republicans adding gun rights to this bill haha. Fortunately, Americans have a pretty short memory but it was a massive error on Pelosi's part.

Yeah probably not the best thing to do, but that's politics. They realized their mistake and backed off within a day, so I don't hold it much against them. Now they're genuinely improving the bills by including provisions for oversight, and I'll be damn ecstatic if they drop 10k off my wife and I's student loans.

Well, I don't pretend to understand this all very well. I don't think that necessarily translates to "low iq explanations" or "scapegoating". Although, major airline consultancy groups are estimating that major airlines would go under in either May or June. That just seems kind of quick to me.

Many people have looked at their expenditures on stock buybacks as a major contributing factor as to why they're so unprepared to weather such a storm. Even Trump has expressed support to the idea of prohibiting buybacks from companies that get bailed out.



https://www.cnn.com/2020/03/24/business/bailout-buybacks-airlines-boeing/index.html



I was reading comments online saying that it just meant people were essentially "borrowing" the money from next year's taxes. I'm not well-versed enough to make sense if that's accurate or not.