Mike, I don't think anybody is seriously thinking all the airlines fold. It's not an acceptable outcome. I didn't say Depression instead of Recession to be dramatic. The pin action on allowing all the airlines to go BK would absolutely devastate the economy.
It's not the "if", it's the "how". This is a financial nightmare. It's getting cleared the US can't save every troubled company. "Bail out" the rich folks is a dirty word these days. There may be some grants, but this is mostly going to have to be loans. There are airlines that could service their new debt. There are some that can't and it will just be prolonging their demise. World travel has to be restored. If they wait until it is completely safe there will be no privately owned airlines in the entire world.
Many were concerned corporations are too far in debt before this all happened. Seems that's the new reality. It's going to be a very short list of companies that aren't much riskier for years to come. Even some aristocrats are tapping out their current credit lines right now. While I am bullish on the market by 2021, the game just changed for sure. There will be BKs, acquisitions, and many of the blue chip survivors will be damaged goods. Yeah, that was a Captain Obvious statement. I hope you all took notes lol. I guess that's why stocks are cheaper now maybe?
It's not the "if", it's the "how". This is a financial nightmare. It's getting cleared the US can't save every troubled company. "Bail out" the rich folks is a dirty word these days. There may be some grants, but this is mostly going to have to be loans. There are airlines that could service their new debt. There are some that can't and it will just be prolonging their demise. World travel has to be restored. If they wait until it is completely safe there will be no privately owned airlines in the entire world.
Many were concerned corporations are too far in debt before this all happened. Seems that's the new reality. It's going to be a very short list of companies that aren't much riskier for years to come. Even some aristocrats are tapping out their current credit lines right now. While I am bullish on the market by 2021, the game just changed for sure. There will be BKs, acquisitions, and many of the blue chip survivors will be damaged goods. Yeah, that was a Captain Obvious statement. I hope you all took notes lol. I guess that's why stocks are cheaper now maybe?