👉 Go to Capitalists or Cronyists? | No Mercy / No Malice
Galloway with his typical “no holds barred” writeup on the bailouts. He is highlighting a valid point, that bailing out some of these companies is often pitched as continuing to provide a service to the consumer, but is that really right?
As long as they keep making old people, and younger people want to take their kids to Disney’s Galaxy’s Edge, there will be cruise lines and airlines. Since 2000, US airlines have declared bankruptcy 66 times. Despite the obvious vulnerability of the sector, boards/CEOs of the six largest airlines have spent 96% of their free cash flow on share buybacks, bolstering the share price and compensation of management … who now want a bailout. They should be allowed to fail. Bondholders will own the firms. Ships and planes will continue to float and fly, and there will still be a steel tube with recirculated air waiting for you post molestation by Roy from TSA.
Certainly for some of these companies they would go bankrupt, somebody would buy the assets, and a new thing would be born.
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