Re:Fed to buy junk bonds, lend to states in fresh virus support
by coredog64 on Thursday April 09, 2020 @07:15PM
(#22828214)
> Why do we not let the airlines have an asset selloff of their "super expensive machines" in an attempt to bridge the coronavirus gap before giving them public funding?
Because airlines don’t typically own those airplanes, they lease them from finance companies like GE Capital. Anything they do own is likely to be at/near EoL and generally worth $0 in a market where nobody can make any use of it.
Unless you’re suggesting that the Fed just take ownership of the aircraft and print money to make lease payments to GE Capital. I’m sure the Democrats in the House will jump right on that.
Because airlines don’t typically own those airplanes, they lease them from finance companies like GE Capital. Anything they do own is likely to be at/near EoL and generally worth $0 in a market where nobody can make any use of it.
Unless you’re suggesting that the Fed just take ownership of the aircraft and print money to make lease payments to GE Capital. I’m sure the Democrats in the House will jump right on that.