Washington Is About to Pick Which Companies Survive

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Even with the biggest economic bailout ever, a lot of firms won't make it through the coronavirus crisis. How should Congress handle the triage?

, which would help President Donald Trump endure the cancelled bookings at his resorts.

Ideally they’d be able to think long and hard about who to bail out and how the bailouts should be structured to minimize the short-term and long-term suffering. Right now they don’t have time to think long, but here are some hard problems they’ll need to consider.Some of the industries begging for bailouts are truly vital to the U.S. economy. Many are on the cusp of huge layoffs that would cause awful pain. And none are responsible for the pandemic that’s destroying their bottom lines.

The financial bailout worked in 2008, and every dime the government invested in dying banks was repaid with interest after they recovered. This time, Washington shouldn’t expect to get back money it invests in the overwhelmed public health sector. But if that money helps contain COVID-19, it could save millions of businesses and trillions of taxpayer dollars.

“It’s hard for markets to function when people can’t price risk, and right now there’s so much uncertainty that it’s very hard to price risk,” says Brookings Institution economist Nellie Liang, who ran the Federal Reserve's Office of Financial Stability and edited First Responders, the collection of essays by the 2008 crisis managers. “We’re definitely starting to see some dysfunction.”

The first principle for any industry-specific emergency aid is that the main goal should be to get the industry through the emergency, not to bail out its investors or executives. “The banks had a gun to our head,” another former financial first responder told me. “That’s somewhat less true when the bailouts are of, say, airlines.”

But it’s worth thinking about when punitive conditions can be too punitive, since the goal is to make sure these vital industries are healthy in the future. Trump’s notion of service requirements sounds like a plan to force airlines to keep flying planes with hardly any passengers, a recipe for bigger losses and bigger bailouts.

 

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Dems chose Plan Parenthood over the American people. Sad.

They can get loans from banks

People's lives first. Then companies.

Money should go too small and midsize businesses ONLY. Too big to fail needs to end now!

You can keep bailing out companies with each crisis, but refuse to help with student loan debt

Quit handing them money and deal with the elected officials that sold millions in stock prior to this.

They can take out loans at almost no interest. Problem solved

People won’t make it through this. People need the money. FeedtheRoots

The homeless situation is bad now. This will double it. 💵💵💵🤔

Hello...companies with assets can take out loans on those assets. Big and small companies. THEY DON'T NEED BAILOUTS. THE PEOPLE DO.

NotaPennyForTrumpProperties

More money. For the people.

They all suck

Democrats vote No, because they don’t care! Remember: playing same rules! Just upset because President Trump Approvals going up!!!! We can’t let the Republicans and Trump look good even if it means people go without Essentials!!!!!!

Pelosi’s choice is Hane’s men underwear since it now will be making Masks masks

'Senate Democrats blocked a massive coronavirus stimulus bill from moving forward Sunday in the Senate, as partisan disputes raged over the legislation that’s aimed at arresting the economy’s precipitous decline.' WaPo

Simple. Ask everyone - especially Nancy Pelosi- to act bipartisan. Why is she interfering and playing games with the Senate vote?

open all business now

Simple. Stop paying the companies who bankrupted the nation and handed jobs overseas at a slave's wage and who continue to work to impoverish Americans.

Why? let nature take its course and the fittest will survive!!

By doing nothing obviously

Save the cruise industry first

Give it to cruise lines. Vomit.

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