Originally Posted by
chrisreedrules
3 bailouts later and here we are. I figured 1 bailout would happen. 2? Maybe... But 3? The whole thing is kind of nutty to me still.
But hey, here we are. Still not profitable and still in an absurd amount of debt. Certainly no threat of a Chapter 7 liquidation at this point but I still think that Chapter 11 is in the cards. Unless anyone thinks our economy and social ailments are going to get better in the next 2-3 years?
Maybe we see a massive return of business and international travel sooner rather than later? Hell I don’t know. Not even the most optimistic projections back in March we’re showing the leisure travel numbers where they are right now. So who knows...
When you lose more money in one year than you’ve made in the preceding four years, DESPITE government assistance, and halfway through the next year the bleeding STILL hasn’t stopped, being worried about the possibility of a Chapter 11 bankruptcy isn’t paranoia, it’s just common sense. Whether bankruptcy happens or not, the risk of it happening has certainly been greatly elevated.
Yellen claiming that inflation might be a GOOD thing doesn’t help either, because it drives loan rates up directly and debt service up when bonds mature and new bonds must be sold at higher coupon to retire the old debt.