rb

Can you elaborate on why that distinction is important? I think LC covered it pretty well. But what you are essentially doing is socializing losses. The bondholder got paid to take on some risk that's why it got paid interest. How is it ok that because the bondholder didn't handicap its risks well now the taxpayer has to pick up the tab? In what way is that equitable? I don't want to really dive into politics. But you just know that once this is done and behind us we'll get back to cutting medicare and social security because we can't afford it. So basically grandma ends up subsidizing bond investors. This can be said about most cases of bailouts but it's specifically acute to airlines because these companies always find a way to get themselves into trouble. So as an airline bondholder you really should be thinking about all kinds of risks when you were buying those bonds. It just happened that it's this risk that showed up instead of another. The other thing is that the US has bankruptcy laws. AND they work very well. Airlines in particular are very familiar with the process. So why not let the market take its course. As LC pointed out, air travel will still be there. The planes won't vanish, pilots won't perish, etc. What would change is the owners of the capital structure. So the only reason we have an airline bailout is to socialize bondholder losses.

Broeb, you're missing one point. It's not actually the airlines you're bailing out. It's the airlines' bondholders.

if you increase the cost of levering up (by eliminating tax deduction), you will see less of it. munger 101. Sure incentives 101. Problem is that you have a much bigger incentive at play: Executive Compensation which towers over the interest tax shield. It's like when the elephant meets the cricket.

Companies didn't lever up in order to take advantage of the tax shield on interest. Companies levered up to do buybacks in order to drive up stock prices to increase compensation on their options. Kinda how the executive pension plan is almost always fully funded but the employee pension plan is almost always underfunded. If you look over to continental Europe leverage levels are significantly lower. Almost no buyback activity. Why? Option based compensation isn't really a thing. So tinkering with the interest tax shield will achieve absolutely zero.

To add to what Spek said above. The industry didn't actually become more rational. They started better pricing because of lower supply (capacity). So natural market forces at work. Now you get a big comeback in supply. It's a commodity service. Market forces at work again. Prices will drop. They may even stop stressing you about your bag.

When people ask I tell them that I'm a consultant. They've heard of consultants and it covers a broad area you can consult on anything. If they drill down further with what kind of work/consulting I do I tell them financial strategy. At this point they still don't know what I do but they generally leave it alone because the term conjures up in their mind a painfully boring conversation. All of the above is true and works pretty well. If you don't mind lieing then I agree with Cevian. The utterance of the word ACTUARY will stop any conversation dead. Just so you're prepared for your new life. It doesn't matter what you actually tell them. Unless you engage in flashy displays of wealth most people will assume that you are a deadbeat in some form or another because you don't have a "real job".

Does anyone know any decent screeners that use Refinitiv (formerly Reuters) data? I'm basically looking for something like the FT screener but isn't limited to 20 results per page and optimally allows you to export the data in excel or whatever. I don't mind paying for it. But I don't want to buy Eikon either. Thanks

The buyback absolutely SUCKED!

I know. But now that you mention it, in college you would tag team a chick with a 74 year old dude that wears makeup? In all seriousness now, for dining out I would pick some place with a simple menu like a steak house. Otherwise you're gonna get a lot of sorry we're out of that.

Why would you want to? That is thoroughly disgusting any way you look at it. I say that as someone who's not squeamish about things in the least.

They obviously don't want their self checkout stations to catch COVID. Can you imagine how much that would cost to fix?

My SPY put trigger is getting itchy. I wonder why?

Pure & utterly nonsence to me. something can't be utterly nonsense. utterly is an adverb, utter is an adjective and therefor grammatical. so, utter nonsense, yes, but only if you spell it correctly. LOL. Gotta love it when someone makes spelling mistakes while correcting someone else's spelling. No to meting that sentence structure. Pro tip: If you're gonna pompously correct someone else's spelling be sure to spell check your work.

Wouldn't it be siphoned by external economies that lack their own local demand? Sure. But the your currency devalues and you get... inflation.

Deposit 1,000 every month in their account for everyone who has a job and makes under 100k per year and watch that shit fly! Hell that's only about 2.3T of new money PER YEAR. At 2.3T you're a pussy these days and that may only get you inflation. You want high inflation better dial that baby up to 2k per month and index it to inflation. That's still just a paltry 5T or so. See? Easy If this is funded by the Treasury, I'd argue it's still deflationary long-term. Debt is inflationary upon issuance and deflationary upon service/repayment. The only way this type of system successfully raises sustainable inflation would be a system that requires CONSTANT growth in the debt and CONSTANT acceleration in that growth. Otherwise as the debt stock grows, the inflationary impulse of the incremental debt add isn't enough to exceed the deflationary impulse of servicing the debt stock. This system is ruined by a Fed EVER raising rates or by a gov't ever balancing its budget. Note that this environment is roughly approximate by the U.S. from 2008 - 2017. Massive deficits, on/off acceleration in that deficit growth rate, and a Fed keeping rates low for years on end. And even that was not enough to spur inflation - and as soon as the Fed hit a period of consistently rising rates (2017), the inflation trend dropped off a cliff in 2018 and kept dropping even after the Fed admitted the policy error and cut rates. I just don't think it's politically or economically feasible for the Treasury to commit to massive deficit spending, massive acceleration in that deficit spending growth, and the Fed committing to keep rates at 0% while it happens. At some point, the deflationary impulse just becomes a black whole and you can't escape it. Hey buddy, where did I ever talk about Fed raising rates or gov'ts balancing budgets. You can't do that while constantly depositing money into consumers' accounts. In fact I specifically mentioned an indexing of that amount to inflation. That's how you get yourself some nice inflation. A good 'ol wage-price spiral. The fact was that we never did inflationary shit. What the fed did was mostly asset side balance sheet stuff. During 2008-2014/5 the fed gov't did run some deficits but that was to replace some consumer demand deficit during deleveraging. Smart, generally inadequate, and nothing too revolutionary. Boring textbook stuff. Once the Tremendous Trump comes in and we really run some deficits again that's on the asset side. Give money to rich folks that buy stocks/bonds, blah. Give lots of money to corporations that buy back stock. All asset side yawn. Oh and while all this shit is going down the Fed is busy sanitizing all this supply via bank reserve requirements. Mopping all the slosh they generated all over the place. The fact is that the Fed has been very careful not to generate inflation. Which is very pertinent to this thread because rentiers hate inflation. So you want real inflation? You need to engage the P&L baby. You need to have more money out there chasing so many goods that the economy cannot produce. You give money not to some stiff suit but some Duck Dynasty Arkansas hillbilly motherfuckers that don't know what a Robinhood is. Inflation index that shit and then watch the sparks fly.

The thing is that it's not main street that is being bailed out. Main street is gonna take it in the ass. They won't understand all the financial mumbo jumbo but they'll feel a pain around the back and will have a pretty good idea where it came from.

Deposit 1,000 every month in their account for everyone who has a job and makes under 100k per year and watch that shit fly! Hell that's only about 2.3T of new money PER YEAR. At 2.3T you're a pussy these days and that may only get you inflation. You want high inflation better dial that baby up to 2k per month and index it to inflation. That's still just a paltry 5T or so. See? Easy

I've looked at doing that in the past when the prices were really good (20-30%) below where they are today and I've passed. Turned out it's not such a great business. Students tend to destroy these places. Think renovations every summer. Even during the year you get to put up with a lot of crap: late rents, tenants breaking things, all sort of complaints arising from partying and other stupid/illegal shit. You can make a decent rate of return but it's really not worth the aggravation. That being said, if you want to buy 10-15 of these things, quit your job and become a property manager then you'll probably do well.

pretty sure indirect is trolling you.

Didn't know that. Thanks.

Speaking of Ruth's. Not for the award because there's worse out there. But having the government remind you that at 470 million in revenue and 5,740 employees you're not a small business deserves an honorable mention.

I don't know. Cause just got released. It's preliminary. And they do correlation. The sample size at 350 is not great but not bad either. TLDR is that smoking incidence in COVID patients is much lower than in the general population - really the opposite of what you would expect. Hypothesis is that nicotine used the same ACE2 receptor that the virus uses and basically when it wants to attach to the lung the place is taken. I was here first kind of thing.

Fuck me! Preliminary study in France indicates that nicotine may prevent smokers from catching coronavirus. https://www.qeios.com/read/article/574?mod=article_inline I never thought anything positive could ever come out of my smoking. Preliminary or not. Just in case it needs to be said: Do not start smoking to avoid COVID 19.

https://www.washingtonpost.com/business/2020/04/23/10-billion-treasury-loan-usps/ To illustrate what a monumentally stupid idea this is consider this mind blowing fact. Approval for USPS=+82, approval for DJT=-11. The USPS is consistently the most popular US gov't agency with an approval rating of 90%. When did 90% of Americans agree on anything? By the way the latest numbers are from 2019. Do you think the approval is up or down since COVID with everyone getting home delivery? Oh and while they're tripping over themselves to figure out how to bail out bankrupt oil companies, the USPS employs 4 times more people than O&G industry. This will work out about as well as injecting bleach. Sources: https://www.people-press.org/2019/10/01/public-expresses-favorable-views-of-a-number-of-federal-agencies/ https://news.gallup.com/poll/203198/presidential-approval-ratings-donald-trump.aspx https://fred.stlouisfed.org/series/CES1021100001#0

Ok, I won't talk. I'll let someone who knows more than me. “Neither sitting in the sun, nor heating will kill a virus replicating in an individual patient’s internal organs,” said Penny Ward, a professor in pharmaceutical medicine at Kings College London and chair of the Education and Standards Committee of the Faculty of Pharmaceutical Medicine.“Drinking bleach kills. Injecting bleach kills faster. Don’t do either!” she added. Btw, if Trump doesn't know something, don't you think that the time and place to ask it is in private and before he addresses the nation? But tell me more about common sense.