I think Chrysler was also a loan guarantee, on the order of $1 B, maybe $2 B. That's in late 1970s dollars so it would be maybe doubled in today's money. Also as reference, I think the Mexican loan guarantees were around $20 B.
If the money gets paid back, then the taxpayers aren't out any money. Of course, we've taken risks for which the borrower would otherwise have had to compensate a private sector guarantor (if it could find one). I don't know exactly how the Chrysler deal was structured, but I think the gov't ended up getting some payments from Chrysler after it righted itself.
[This message has been edited by MagMile (edited 09-18-2001).]
Alternatively, aren't the airlines as essential to society today in 2000 as the rails were in 1900?
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United Airlines says to furlough 20,000 workers
United Airlines, the nation's No. 2 airline, said on Wednesday it plans to furlough about 20,000 workers in the wake of the attacks on New York and Washington.
The airline, a unit of UAL Corp. (NYSE:UAL - news), said that the layoffs affect all employee groups. The Chicago-based airline has about 100,000 employees throughout its system.
United's layoffs follow cutbacks by other major U.S. airlines looking to staunch losses as air traffic demand falls. Over the weekend, United announced a 20 percent pull down in its scheduled service.
After investing heavily over a period of years to become the largest air carrier at Los Angeles International Airport, United Airlines confirmed Monday that it will dramatically reduce its Los Angeles flight schedule at the end of this month.
United spokesman Chris Brathwaite would not confirm the content of the letter but said it was in the process of being mailed out to United's roughly 100,000 employees early this week. A version of it was sent to United supervisors last Friday, he said.
Location: United 1K. Hilton VIP Gold. Starwood Gold.
Posts: 343
Wow, 17 bucks has really now gotta be a buy? Costs down, routes streamlined, Gov't backing basically assured. WHERE do you get all this stuff doc? Amazing info as always- thanks.
Location: United 1K. Hilton VIP Gold. Starwood Gold.
Posts: 343
Re-reading it Doc .. heading said UAL was down about NINE PERCENT today based on that panic Goodwin letter. As I type this they are way down to $16.61, or 10.90% down on the day. Here is a chart showing them at $46 in January. Gotta be a buy today - they are dropping rapidly this morning.
Investors shied away from airlines stocks for the second consecutive day, still spooked by UAL Corp. Chief Executive's letter warning employees that the carrier may "perish" is it doesn't stop bleeding cash.
In early trading, the nation's second-largest airline was down $1, or nearly 6 percent, to $15.85 - a new low.
