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Originally Posted by Profane Kahuna
(Post 4026344)
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Well if spirit is too big to fail then AA is definitely too big. We can stop that whole debate about their finances and whether they go under.
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Love to know the structure of this potential deal and what creditors get priority when it inevitably doesn’t work
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Happy for Spirit bros, hopefully it works long term and isn't just delaying the inevitable. However, this creates a pretty bad precedent and moral hazard. Basically encourages corporations to take excessive risk and not worry about failing because Uncle Sam (taxpayers) will be there to save you. I thought we were against corporate welfare?
Stock holders should be wiped out or something as a consequence of accepting a "bail out" to deter this type of thing in the future. Covid was a unique worldwide event, so I don't think parallels to that can be drawn. |
Originally Posted by m3113n1a1
(Post 4026377)
Happy for Spirit bros, hopefully it works long term and isn't just delaying the inevitable. However, this creates a pretty bad precedent and moral hazard. Basically encourages corporations to take excessive risk and not worry about failing because Uncle Sam (taxpayers) will be there to save you. I thought we were against corporate welfare?
Stock holders should be wiped out or something as a consequence of accepting a "bail out" to deter this type of thing in the future. Covid was a unique worldwide event, so I don't think parallels to that can be drawn. |
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