<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by mjm:
This is something I have had a question about since sitting through the first Economics lecture way back when. Is this a fertile environment for creditors to act rationally? And as such can we expect rational behavior? The premise, I believe in your statement is that people act rationally. </font>
While I know you are not part of this group Mike, these is a collection of people on this board who think that all investment bankers and commercial bankers are just big egotistical idiots. Having been an MD at a major bracket firm and can tell you these were the smartest and most pragmatic group of people (as a single group) I have ever had the pleasure to associate with in my entire life.
My experience tends to show that the irrational behavior that does occur comes during the origination and underwriting of the deal – the workout people are very cold, deliberate and rational.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by mjm:
would not analysis show that perhaps this is not, and for quite a while has not been, the best strategy as a shareholder? If we could take an impartial snapshot of today, what would be the best course of action?
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Who would be the buyers of the assets at this point? By way of illustration, look at Houston during the real estate and banking bust of the 80’s lenders ended up with REO properties with 15% occupancies – in many cases they bought off the existing tenants, moved them out and mothballed the properties. This was cheaper than operating them and necessary to wait out the depressed market and sell into a recovery. Much the same may be the outcome here – it just would be a lousy time to liquidate airline assets.
[This message has been edited by B Watson (edited 12-13-2002).]