Quote:
Originally Posted by rickair7777
Yes, this is probably accurate-ish today, I don't think most carriers will just up and trim 20% anytime the stock market drops a few points.
But most of us thought that our first black swan was an aberration and would be our last... most of us know better now. Although the frequency of black swans is hard to predict I'd be surprised if we went more than 15-20 years without one.
It may not take a nuclear war, even a big dust-up between near-peers would probably have an impact.
If it’s the typical economic cycle, there may not be furloughs this time. The staffing struggles after Covid and difficulty of replacing those pilots may encourage mgmt to wait things out.
-Mortgage defaults higher than 2008
-Blackrock has set aside $30b to buy foreclosures in the coming recession
-30% auto loans 90 days delinquent
-1 in 7 30 days delinquent
-40m people now having to repay student loans at $504 average
-CRE defaults at all-time high
-40% of office space vacant
-$1t CRE due refinancing in 12 mos
-$2.7t due refinancing by ‘27
-CRE equity lower and rates higher and not solvent enough to refi
-$1t in credit card debt
-$500m in maxed out cards
-record high savings now depleted
-record high early withdrawals from 401k/IRÁ to pay bills
-record hi refis to pay living expenses
-$120k/yr needed to afford the average home, that’s only 8% of workers
-the March bank failures had more assets than all of 2008
-700 banks have been notified that they may be closed (Jerome Powell last fall)
-in 1 quarter a trucking recession has started and may have been laid off (I follow this closely since trucking WAS going to be my back up)
-advance airline ticket sales are declining, we’re planning a February trip and prices have fallen 20% in two weeks without discounts
-Airbnb has collapsed and is now focusing on long-term rentals such as “roommates”
-etc,etc
Who knows how resilient the economy is and what will happen when it reacts.