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Airlines flying empty planes to keep flight slots during coronavirus outbreak

businessinsider.com

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Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#121

Post by allovernow »

zukzuk wrote: post #106
0x8BADF00D wrote: post #104

Earlier quoted context omitted.

Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.

zerohedge.com is leaking again

Zerhoedge has also been a month ahead of the media with respect to coronavirus reports.

The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#122

Post by refurb »

zukzuk wrote: post #106
0x8BADF00D wrote: post #104

Earlier quoted context omitted.

Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.

zerohedge.com is leaking again

Indeed. Anyone who follows zerohedge has probably noticed that the economy was on the brink of collapse every single week of the past decade.

I do follow zerohedge since they often report on things others won't, but I take their analysis with a grain of salt.

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#123

Post by bdcravens »

0x8BADF00D wrote: post #104
mathattack wrote: post #101

The airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense.

Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.

The article is about rules in Europe.

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#124

Post by closeparen »

emiliobumachar wrote: post #108

Ironic. I had heard tales of the old Soviet Union about trains running empty to fill distance quotas. It was presented as the ultimate proof of how messed up their system was.

This is just another instance of the classic Soviet problem. A scarce resource is allocated by a government bureaucracy instead of a market, and the bureaucracy's design is imperfect, so nonsensical incentives fall out of it sometimes.

There's no irony. It's just kind of quirky for the West to manage flight/landing slots this way, instead of an auction (as the FCC does with spectrum).

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#125

Post by bdcravens »

allovernow wrote: post #121
zukzuk wrote: post #106

Earlier quoted context omitted.

zerohedge.com is leaking again

Zerhoedge has also been a month ahead of the media with respect to coronavirus reports. The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.

Even a broken clock is right twice a day.

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#127

Post by refurb »

EarthIsHome wrote: post #45
bob33212 wrote: post #33

Earlier quoted context omitted.

A decent percentage of people put food on the table and a roof over their head by doing a job we could classify as needless

Another reason why work shouldn't be a precondition for being alive. I think that would be a sensible change.

Yet it's work that funds the taxes that would pay for basic income.

Unless people are willing to take a massive decrease in quality of life to fund such a system, it will never happen.

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#128

Post by rolltiide »

betaby wrote: post #115
emiliobumachar wrote: post #108

Ironic. I had heard tales of the old Soviet Union about trains running empty to fill distance quotas. It was presented as the ultimate proof of how messed up their system was.

Never heard that, why would they in planed economy?

> why would they in planed economy?

I hope this pun doesn't fly over everyone's heads

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#129

Post by hilbertseries »

allovernow wrote: post #121
zukzuk wrote: post #106

Earlier quoted context omitted.

zerohedge.com is leaking again

Zerhoedge has also been a month ahead of the media with respect to coronavirus reports. The fact that ZH speculates about conspiracies does not mean that everything on their site is BS.

If you doomsay about everything that could possibly cause a crisis, you may eventually be right about one of them causing a crisis. Does it make their articles in 2018 about how the economy has about to collapse more accurate?

Re: Airlines flying empty planes to keep flight slots during coronavirus outbreak

#130

Post by cinquemb »

0x8BADF00D wrote: post #104
mathattack wrote: post #101

The airlines that are stockpiling capacity at our expense will come hat in hand for a bailout at our expense.

Except there won’t be money available when they ask for it. When the dollar collapses after the Fed cuts rates, the interest rate will rise very high. The government will be forced to cut spending, and there will be no bailouts this time.

>When the dollar collapses after the Fed cuts rates, the interest rate will rise very high.

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-...

[1] https://www.newyorkfed.org/markets/primarydealers

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