I'm sure there's some" new math" working in the accounting department there. When he quote" bailed out" blankfien he missed the bottom of the sp by quite a bit. Let's see what happens after this mess turns around.
. Did you see the heavy selling with AAL taking out it's 10 year low today? With the Bailout priced in why the selling? ARNC fell from $15 to $5.88 on Tuesday, BA collapsing again does not give me the confidence yet. Are funds raising money for better stocks or building up cash!
Go ahead, just short them all. Because after all, this virus will kill all human airline flight forever. It must be a given.
What bleeding? It goes up 10%, drops 20%, blah blah etc. In the end, do you think we will no longer have airlines? Will we be on Greta boats?
All the current airlines can file for chap 11 and we'll still have airlines...those of us who are common stock shareholders just won't own any of it. Just like the shale producers are all going to get wiped out but in a year shale will be making lots of money again. Path dependency matters!
LE. It all ends up in the same meat grinder, lol. J/K! By the way, AOC has really gone off the deep-end, demanding reparations for black folks suffering from COVID? Geez!
The businesses will still be operating after restructuring. companies cannot wipe out all their debt as bankruptcy judge won't allow it. It much better if companies could wipe out 100% of debt in exchange for new equity. its a much stronger company. As for the equity it ends up in share dilution. It's the same over and over again. airlines have a history of going chapter 11. due to heavy debt. any company with long term debt is shunned by investors. as in recession it's very hard to get refinance debt in the corporate debt market and interest 7-11% or more for high risk businesses. Investors shun risk in times like this. or risk off.
I heard he also just took out lots of loans from Japan and Eurozone. He got them at 0% because that's more attractive to the lender than negative interest rates.