To anyone who thinks that the airlines couldn't have seen this coming or avoided catastrophe without a bailout: 1. The airline industry has gotten so concentrated in the past couple of years that Buffett bought into it. Buffett doesn't buy businesses that can't generate returns.
2. Credit was not only at historically cheap rates, but was extremely available 2 months ago. Airlines EASILY could've stockpiled cash for an "unforeseeable risk" 3. Speaking "unforeseeable risks", all of the following events happened in the past 20 years: A. 9/11 B. SARS
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C. 2010 eruptions of Eyjafjallajökull D. Countless pilot strikes E. Ukraine/Iran missiles Air travel is regularly suspended by "unforeseeable events".
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Anyone who has been in business for a while knows it's only a matter of time before you get unlucky. That's why you need cash on hand. Bailout is better structured than the GFC's, but the American taxpayer is the sucker here.
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C. Eyjafjallajökull
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What'd you just call me?
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