The airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense.
Yep. The same airlines that today are crying because of their "razor-thin margins" are the same ones that recorded billions of dollars in profit just a few months ago.
Evey yearly numbers don't tell the full story - you have to look at multi-year trends in profitability.
...and, indeed, they aren't great for the industry as a whole. Most nations operate a national carrier at a loss.
You need a ton of signals to actually interpret the condition of an airline.
Began charging for basic provisions that used to be included in the ticket price
Began cramming people into narrower and more uncomfortable seats
Added yet more fees
Reduced the frequency of flights on many routes so planes are more crowded
Fought to keep foreign carriers(competition) out of the domestic market
The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.
CNN and Fox also misrepresent news regularly - that doesn't mean they have nothing useful to report.
It's exactly that reason why they are a useless source for information.
I do follow zerohedge since they often report on things others won't, but I take their analysis with a grain of salt.
As long as the dollar denominated debt outstanding continues to dwarf the amount of dollars in circulation (claims on future dollars far exceeds the amount of dollars that exist), I don't see the dollar collapsing. Interest rates can also rise due to credit risk. Fake interest rates set by FRBNY cant fix credit risk, they cant make corporations/goverments with severely stressed/ no cash-flow solvent.
> The government will be forced to cut spending
This is the usually the opposite that happens during credit busts, they increase deficits. If you doubt a governments ability to generate cashflow, then one should worry.
> and there will be no bailouts this time.
For whom? Some banks merely have to go to the discount window and keep rolling over their loan with any illiquid asset they have as collateral with FRBNY, JPM is doing this now[0]. A few other banks[1] can go to the FRBNY repo market for either a daily/term bailout with their rehypothicated UST/MBS collateral at fake interest rates.
I'd be more worried about the corporates (and the assets they may be holding that will have to get liquidated) who were engaging in bank like activities without the access to these facilities.
[0] https://www.bloomberg.com/news/articles/2020-02-25/jpmorgan-...