Thats is about the best article I have read in a long time.
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I really like this part:
"Some more details from Boeing:
Boeing Co. has asked White House and Congressional officials for short-term aid for itself, suppliers and airlines as the outlook for the travel industry worsens by the day, said people familiar with the matter.
The U.S. planemaker is seeking to avoid layoffs and damage to hundreds of smaller companies that make parts and systems for its aircraft, said the people, who asked not to be named because the talks are private. Boeing has also been buffeted by the grounding of its best-selling 737 Max, which awaits regulatory clearance to resume flights after two deadly crashes.
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Followed by this part:
We have one small problem with that: while Boeing was perfectly happy to load up on as much debt as it could over the past decade, the bulk of the proceeds was used for none other than enriching its shareholders and management, with zero consideration for those same employees and suppliers that the company suddenly cares so much about now. And Boeing certainly didn't care about its passengers when it cut every corner it could find, to design the 737 MAX as cheaply as possible, a plane that was "designed by clowns, who are in turn supervised by monkeys", even if it meant the airplane would become a deathtrap.
So, no, nobody in their right minds should give Boeing even one penny in "short term aid". Instead, management and the board should be ordered to sell as much stock as they need - you know, the opposite of buying it back - to maintain the business, even it means sending the stock price crashing far lower.
Because it's called capitalism, and because there is no reason why taxpayers should foot the bill for a company which instead of saving cash when times were good, was handing it out to shareholders and a handful of executives, and which should now for some insane reason be eligible for a bailout when times suddenly go bad.
No: force Boeing - and others like it that spent billions repurchasing its stock while incurring massive amounts of debt - to sell its stock. After all that's what a public company's stock is - a currency - and just as Boeing could repurchase it when it had cash, and lifted its stock price to all time highs, it should now sell its stock and use the proceeds to fund itself, like any other corporation does when it needs funding. Last time we checked, Boeing's market cap was $73 billion, and it certainly afford to drop much more as the company now does the buyback in reverse.
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And especially this part:
And especially this part:
And especially this part:
And especially this part:
This is also a warning to Congress and the White House: if chronic stock repurchasers such as Boeing, are bailed out instead of ordered to find their own sources of liquidity, there will be a mutiny in America and rightfully so, because it was Boeing's shareholders that got rich on the way up, and now it is somehow up to taxpayers to make sure the company, loaded up with record amounts of debt used to fund buybacks, survives one more quarter.
That, in a word, is bullshit.
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