Stock Market Crash

[ImTheCaptain]

time to nationalize the airlines again

 

[tigerswood]

Mortgage rates jumping as the 10 year yield spikes due to big treasury sell offs. Recession + high mortgage rates would not be good for housing. Meanwhile, we put in an offer on a house at $18K above list price yesterday and lost. They had 10 offers in 36 hours. Demand still far exceeds supply.

 

[Liquid Karma]

Now would be a good time to own a prop mgmt company...

 

[Wakeforest22890]

If share buybacks are forbidden, why aren't dividends? They serve the same purpose.

I just don't get why they raise so much ire. They return money to shareholders to be invested elsewhere. Not sure why they are somehow the ultimate mark of greed.

Although I suppose you could argue that since airlines did it so regularly that it was a predictable and foreseeable result, a major distinction is that dividends are available to investors to see in a public manner. Beyond the broad similarity of returning “money to investors” buybacks are a form of market manipulation which provide more uncertainty than dividends.

 

[JuiceCrewAllStar]

Now would be a good time to own a prop mgmt company...

my co-worker closed on a purchase of a property management company a week and a half ago

put in his two weeks and starts running it on Monday


re: mortgage rates, I reached out to my lender about a refi once the Fed rate went near zero -- he told me in the near term, everyone is hiking rates way high to deal with capacity issues, and that mortgage rates won't respond to low fed rates for a couple months

 

[Deacon92]

Mortgage rates jumping as the 10 year yield spikes due to big treasury sell offs. Recession + high mortgage rates would not be good for housing. Meanwhile, we put in an offer on a house at $18K above list price yesterday and lost. They had 10 offers in 36 hours. Demand still far exceeds supply.

Depends on where you are.. Prices in SWFL and Sfl still aren't aren't yet back to 2008 levels. Lot's of rentals still.

 

[PhDeac]

Although I suppose you could argue that since airlines did it so regularly that it was a predictable and foreseeable result, a major distinction is that dividends are available to investors to see in a public manner. Beyond the broad similarity of returning “money to investors” buybacks are a form of market manipulation which provide more uncertainty than dividends.

They have the money to bail themselves out and keep paying workers. They would need to get more liquid, trim exec salaries, and not give back to investors. If they don’t, they can get it from any number of financial institutions willing to lend.

my co-worker closed on a purchase of a property management company a week and a half ago

put in his two weeks and starts running it on Monday


re: mortgage rates, I reached out to my lender about a refi once the Fed rate went near zero -- he told me in the near term, everyone is hiking rates way high to deal with capacity issues, and that mortgage rates won't respond to low fed rates for a couple months

Good to know. We inquired about a refi but the numbers didn’t work out. Made sense to keep aggressively paying off the HELOC and then do the same on our mortgage. We got a good rate in 2013 so it would tough to beat.

Depends on where you are.. Prices in SWFL and Sfl still aren't aren't yet back to 2008 levels. Lot's of rentals still.

The banks still own a lot of homes in Florida.

 

[HuskyDeac]

Airlines getting destroyed today. Is seems pretty clear they're going to be bailed out - are the terms more restrictive than expected? They're down 25-30% just today.

 

[BillBrasky]

Airlines getting destroyed today. Is seems pretty clear they're going to be bailed out - are the terms more restrictive than expected? They're down 25-30% just today.

Either nationalize them or let them fail. I'm done with our government propping up shitty business with my kid's future tax dollars. Same for any and all wall street/finance firms. Its not our fault your business can't handle a little turmoil. Fuck off.

 

[TownieDeac]

***I recognize this is a radical take***

Obama had a great opportunity with the auto industry to nationalize and permanently nationalize the industry. Would have huge rippling effects on oil, infrastructure, etc. that broadly speaking we need to overhaul to address climate change. We have this opportunity again with airlines. Obviously Trump will go the other direction.

 

[Liquid Karma]

Airlines getting destroyed today. Is seems pretty clear they're going to be bailed out - are the terms more restrictive than expected? They're down 25-30% just today.

Uncertainty over when air travel will resume at profitable levels.

 

[dartsndeacs]

***I recognize this is a radical take***

Obama had a great opportunity with the auto industry to nationalize and permanently nationalize the industry. Would have huge rippling effects on oil, infrastructure, etc. that broadly speaking we need to overhaul to address climate change. We have this opportunity again with airlines. Obviously Trump will go the other direction.

I guess my worry with government owned auto industry and airlines would be, would there ever be any innovation? Would tesla exist? Force companies on exchanges to keep a certain level of cash reserves and liquidity otherwise they get de-listed.

 

[TownieDeac]

I guess my worry with government owned auto industry and airlines would be, would there ever be any innovation? Would tesla exist? Force companies on exchanges to keep a certain level of cash reserves and liquidity otherwise they get de-listed.

NASA works. NIH works. Better return on taxpayer dollar to a broader group than privatized industry for certain segments.

 

[dartsndeacs]

NASA works. NIH works. Better return on taxpayer dollar to a broader group than privatized industry for certain segments.

We went to the Moon like 60 years ago? What have we gotten since then? Considering the growths of technological advancement of other industries, we should be by at least Neptune by now. Can't even land on Mars.

 

[RJKarl]

We went to the Moon like 60 years ago? What have we gotten since then? Considering the growths of technological advancement of other industries, we should be by at least Neptune by now. Can't even land on Mars.

Nixon and Reagan really harmed our nation with their cuts to NASA.

But you should ask Matt Damon what landing on Mars was like.

 

[TownieDeac]

Innovation is one thing. A livable clean world is another; don’t see industry getting us here.

 

[dartsndeacs]

Hmmm, the market dropped like 90% during the great depression. Our entire economy is based on services. We produce very little. It's kinda hard to see how we rebound from this.

 

[PhDeac]

I don’t know why our society expects a baggage handler to have better bootstraps than a airline CEO. They get paid a lot of money to navigate companies through these situations. Force them to do their damn job. And there are plenty of sources of capital beside the US government. Go to the billionaires and the banks.

I don’t know if nationalizing is the answer but it should be on the table if important industries can’t show that they can be privately run. We’ve figured out a dual system to transporting things from one place to the other. We have the US Postal Service that is taxpayer funded and operates at a loss that provides a consistent rain or shine service. We also have privately owned services. Maybe we need a national airline akin to USPS. Would be nice to buy a “stamp” for one price to transport myself around the country.

 

[JuiceCrewAllStar]

I think there's a strong argument for letting the airlines go bankrupt

 

[JuiceCrewAllStar]

We went to the Moon like 60 years ago? What have we gotten since then? Considering the growths of technological advancement of other industries, we should be by at least Neptune by now. Can't even land on Mars.

but what's the point other than just to do it?