False arguments and bailouts .. all over again.
I t’s 2008 all over again . The Trump administration is going to announce massive bailouts to large enterprises that are ‘hurting’. They claim these companies were not at fault as they were hit by the Covid crisis. Prime examples are airlines, who went from record revenues and profits to near 0 revenues immediately due to the virus. This argument seems logical, at first. However, what they fail to take into account is the bad financial practices at the airlines all this while. Businesses are supposed to manage risk and plan for rainy days. Some may argue that this was completely unexpected. No, it wasn’t. Anyone with any knowledge of global risks would list a pandemic as a virtual certainty and near the top of global risks. Why did airlines not take this risk into account? After all, they are the original global business and literally connect the world. They would be expected to be the most impacted by a global event more than anyone. There are all types