The Fed May Have Already Saved Taxpayers $60 Billion In Averted Boeing Bailout
Following the April FOMC meeting, I chided a handful of habitual Fed critics for what, in my judgement, was gratuitous attention seeking.
Seemingly everyone with a soapbox has taken to railing against the Fed's decision to buy corporate bonds. That criticism is always couched in moral hazard terms, and in some cases, those doing the criticizing suggest taxpayers will invariably lose money. While taxpayers are on the hook for hypothetical losses in the Fed's emergency facilities (via the Treasur
In the past I have been a big critic of chairman powell. But he has done an excellent job of crisis management since march.
I agree, but he had a lot of help from a novel playbook, written by Bernanke, who I think gets a lot less credit than he deserves.
If Buffett is correct about the Airline Industry they may well be getting bailed out at a later date ..
Of course they will. The truth is that over time no form of public conveyance has ever made a lasting cumulative profit without some form of public subsidy, not stage coaches, not railroads (all in existence in the US have been bankrupt, some several times), not airlines, not steamships, not city bus systems, none of them. The economics just don’t work. Too much operating leverage. The same is also true of our health care system. That industry is totally subsidized, one way or the other. The post office is another such problem. UPS and Fed Ex are cherry-pickers. The post office can’t do what they do. They must serve the whole audience, every address, no matter what.