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Message
Do businesses not have saving anymore???
Posted on 3/19/20 at 10:49 am
Posted on 3/19/20 at 10:49 am
First the airlines and tourism. Now manufacturing is asking for a $1.4T bailout. They need to do what they do with the banks and ensure businesses are well capitalized (for economic downturns to the point of not causing damage to the economy) before they can use cash on stock buyback and dividend distributions.
This post was edited on 3/19/20 at 10:56 am
12
Posted on 3/19/20 at 10:51 am to IrishTiger89
BAILOUT BAILOUT BAILOUT!
I understand that this is completely different than anything before and not their fault....
but they better not use the money the get from a bailout for crap like this!
yes, they should have a set amount of cash on the side for downturns....but I will admit, this is a BIG downturn a majority of companies
I understand that this is completely different than anything before and not their fault....
but they better not use the money the get from a bailout for crap like this!
yes, they should have a set amount of cash on the side for downturns....but I will admit, this is a BIG downturn a majority of companies
Posted on 3/19/20 at 10:53 am to IrishTiger89
Airlines are a tough one for me, especially with the virus. They could easily cancel flights when they are only 50% full, but at the same time I would rather be on a flight that is 50% instead of 90% full. I have no issues with assisting as long as we are paid back. I wish we could look into a stock options type bailout where the money ends up back in the hands of the tax payers.
Stay safe everyone.
Stay safe everyone.
Posted on 3/19/20 at 10:54 am to IrishTiger89
quote:
First the airlines. Now manufacturing is asking for a $1.4T bailout. They need to do what they do with the banks and ensure businesses are well capitalized (for economic downturns to the point of not causing damage to the economy) before they can use cash on stock buyback and dividend distributions.
Companies don't just sit on cash - they distribute it or spend.
Posted on 3/19/20 at 10:54 am to TimeOutdoors
Airlines = ok
Other tourism = absolutely not
Other tourism = absolutely not
This post was edited on 3/19/20 at 10:55 am
Posted on 3/19/20 at 10:55 am to IrishTiger89
Apparently not according to the “business owners” here.
Posted on 3/19/20 at 10:56 am to IrishTiger89
quote:
businesses not have saving anymore
You mean like a savings account at the local bank?
Posted on 3/19/20 at 10:56 am to IrishTiger89
Overnight the CDC basically shut these businesses down for 8 weeks.
No, they did not prepare for their government to do that overnight. Regardless of whether that was right or wrong. We’ve never decided artificially shutting down our economy was the answer to a pandemic.
Maybe in the future pandemic insurance will be more common.
No, they did not prepare for their government to do that overnight. Regardless of whether that was right or wrong. We’ve never decided artificially shutting down our economy was the answer to a pandemic.
Maybe in the future pandemic insurance will be more common.
This post was edited on 3/19/20 at 10:57 am
Posted on 3/19/20 at 10:57 am to IrishTiger89
From what I gather, a lot of small businesses roll profits back into the business. A few of my vendors told me that was the fear of us shutting down.
Posted on 3/19/20 at 11:01 am to IrishTiger89
Some businesses are going to see a slowdown. Some will be hit hard. Some will be all but shut down.
If a business is sitting on enough cash to just keep going for weeks and weeks without any revenue, that is a horrible job of asset management.
And the vast majority of small, privately held businesses have NOTHING like that kind of cash. Even solidly profitable companies are typically plowing "profits" back into the company (inventory, fixed assets, etc.). My company had solid EBITDA last year. If you think that has anything to do with actual cash I have available, you have never run a business.
If a business is sitting on enough cash to just keep going for weeks and weeks without any revenue, that is a horrible job of asset management.
And the vast majority of small, privately held businesses have NOTHING like that kind of cash. Even solidly profitable companies are typically plowing "profits" back into the company (inventory, fixed assets, etc.). My company had solid EBITDA last year. If you think that has anything to do with actual cash I have available, you have never run a business.
Posted on 3/19/20 at 11:03 am to Ag Zwin
quote:
you have never run a business.
He has never run a business.
Posted on 3/19/20 at 11:04 am to Ag Zwin
quote:
Some businesses are going to see a slowdown. Some will be hit hard. Some will be all but shut down.
If a business is sitting on enough cash to just keep going for weeks and weeks without any revenue, that is a horrible job of asset management.
And the vast majority of small, privately held businesses have NOTHING like that kind of cash. Even solidly profitable companies are typically plowing "profits" back into the company (inventory, fixed assets, etc.). My company had solid EBITDA last year. If you think that has anything to do with actual cash I have available, you have never run a business.
It's amazing how people who have never run a business, always have the answer on how to run a business.
Thanks for posting actual truths.
Posted on 3/19/20 at 11:06 am to IrishTiger89
Airlines just got caught with their pants down. They've been buying their stock back instead of building infrastructure.
Posted on 3/19/20 at 11:06 am to IrishTiger89
Other companies are relying on other companies to do business with. Everyone gets fricked.
Companies owe the banks, that's how they got started. They still need to make the same payments. They still had to pay taxes, they still had to pay unemployment, they still had to pay ridiculous amounts of insurance.
shite, a lot of companies are in business for years without turning a profit. They do just enough to cover fixed costs.
Companies owe the banks, that's how they got started. They still need to make the same payments. They still had to pay taxes, they still had to pay unemployment, they still had to pay ridiculous amounts of insurance.
shite, a lot of companies are in business for years without turning a profit. They do just enough to cover fixed costs.
Posted on 3/19/20 at 11:10 am to IrishTiger89
quote:
They need to do what they do with the banks and ensure businesses are well capitalized (for economic downturns to the point of not causing damage to the economy) before they can use cash on stock buyback and dividend distributions.
We have to accept that this won't happen.
Best case scenario is business interruption insurance becoming mandatory and all encompassing to include things like this.
At that point at least you have implementation and execution in the private sector, but you'll have even more corruption and cronyism in the insurance industry. Pick your poison I guess.
Posted on 3/19/20 at 11:15 am to boogiewoogie1978
quote:
Airlines just got caught with their pants down. They've been buying their stock back instead of building infrastructure.
I honestly wouldn't mind making buybacks illegal again, I think it's a shitty way to put money to work and business people need to start doing actual business not repeating the same Private Equity model balance sheet house of card bullshite we see... but this talking point about buybacks misses the point and is just a Leftist internet circle jerk.
Let's say that in the past decade all these airlines didn't buy back stock but put all this money to a rainy day fund. Well that would be a horrible use of capital. Let's say they put it to expand terminals and build out more airplanes. How does all that extra capex make this situation better?
Posted on 3/19/20 at 11:16 am to TimeOutdoors
quote:The problem with this is that it would probably tank the market even more, because share prices would immediately tumble. Maybe a combination of both ideas could be worked out.
Airlines are a tough one for me, especially with the virus. They could easily cancel flights when they are only 50% full, but at the same time I would rather be on a flight that is 50% instead of 90% full. I have no issues with assisting as long as we are paid back. I wish we could look into a stock options type bailout where the money ends up back in the hands of the tax payers.
Stay safe everyone.
Posted on 3/19/20 at 11:18 am to boogiewoogie1978
quote:
They've been buying their stock back instead of building infrastructure.
Those who were buying the 737MAX can't take deliveries since it's still grounded. Some were retiring older planes sooner than planned.
Posted on 3/19/20 at 11:22 am to TeLeFaWx
quote:
Let's say that in the past decade all these airlines didn't buy back stock but put all this money to a rainy day fund. Well that would be a horrible use of capital.
Do you have money saved up or are you leveraging every single dime?
And how is that a horrible use? The money would go towards keeping employees afloat. Maybe companies should start viewing employees as assets instead of only the shareholders.
Posted on 3/19/20 at 11:24 am to TeLeFaWx
quote:
business interruption insurance becoming mandatory
Maybe the government can put in a business mandate...
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