A plan to save the US economy

[freedom]

Why is this discussion even being held on the US message board? Because the US CEO happens to be attending an economic forum hosted by the Wall Street Journal. That's a stretch.

The debate being discussed in this thread is about how to solve the national economy, the ridiculous idea of $1 gas, deficit spending, stimulus checks, retail sales projections over the holidays and the like.

Mods, close this down, or better yet, participants, just let it die.

actually NCFL , the national econmic debate is VERY VERY revelant to our own companies situation ... it all goes to what i like to call the GM effect ... GM was coming along just fine after having gotten concessions from their unions and then suddely high oil prices hit ... they tried desperately to start playing up their smaller car line , which sadly for them wasn't a money maker .... and for awhile it looked like they might survive the drastic change in consumer prefernces ... then the credit crunch hit ... last october their sales dropped by close to 50% from the same time last year .... with a 50 percent loss of sales , their company without goverment assitance will not be able to survive ... what has happened to them is due to the State of the US Economy .... now what WE have to ask ourselves is what may happen to our airline in the future .... this forum that our company will be a part of will discuss the bussiness future of america ... so it's very revelant ...

We know that this years sales are OK ... but what about next ? As more people lose their jobs (unemployment is expected to reach 8 or 9 percent next year ) how will this affect our booking ? Futher more , with as many major airlines as there are now , we will be fighting over a scare resource , aka customers .... Travel is already in steep decline , and to observe this you need look no futher than las veags ...

So no , i don't think it's out of place to ponder the future of our airline , in relation to our nation ...

 

[freedom]

I think I have a better idea, and I have been advocating for its institution for nearly 2 months (see here, here and here). It is an alternative systematic debt for equity swap. A major problem in the financial sector is the valuation of certain assets. This is a major problem that is part of the root problem that encourages entities to hoard any available cash. A systematic debt for equity swap will eliminate much of the threat of default. This gives such entities an immediate equity cushion. Moreover, it doesn't require the government to valuate such assets and it requires little, if any, of the government's (our) money. It also doesn't force the government to act as a divine creature who determines which entities should survive and which should be allowed to fail. Some may suggest that this approach dilutes the shares of current equity holders. So, this systematic approach will allow current equity holders to buyout old debtholders for the face value of the debt. Of course, a rational equity holder would only do this if they believed the entity was solvent, otherwise, they would not want to purchase additional equity, as the equity is already worthless.

The major financial players hate this approach, however, because it forces them to bear their fair share of the pain, rather than receiving an appealing bailout from the taxpayers.

Finally, a similar systematic approach could also be used for Main Street and the housing crisis, whereas an index is used to determine locales with a significant housing price drop. In these locales, the lenders and homeowners will be given authority to exchange a portion of the mortgage for an equity interest in the home that may be redeemed at the sale of the house.

lilly i'm having trouble understanding what your getting it , do you think you could explain it in simpler terms ? i'm going to try and look up the defentions of some of the words here , it looks like you have an interesting point , i just don't get it .

 

[signals]

Wow, dare to dream, eh? $1 gas?

If gas were $1 planes would be obsolete because cars would take us everywhere and a/c would be used for those who cross a larger body of water than a ferry can get to.

Your assessment seems to be nothing more than those emails that tell us how to bring the oil companies to their knees...it doesn't work and will never happen!

You(and by 'you' I mean most people) forget that we are a WORLD market! The WORLD has been paying over $4 a gallon for gas since the 70s! Your assessments, freedom, make little sense in the bigger picture of things.

Even I think that Dougie has a better grip on things.

Nice kissin' up, though

 

[KCFlyer]

Subsidize gas at $1 a gallon and watch a run back to SUV's. Don't do it.

 

[delldude]

Subsidize gas at $1 a gallon and watch a run back to SUV's. Don't do it.

Look around...it'll never happen...its starting to cave.Obama is going to have his hands very full.

 

[freedom]

i do have some concepts of the greater world markets ...

my point with gas subsidization in the US is to restart our econmic engine ... the problems we've had with gas are still going to be there if our economy and the world economy ever returned to full throttle ... but seeing as how demand is deceasing in the rest of the world , it might be possible for the US to buy up the unused capacity and funnel it into the US engine ...

realisticly the best my idea could do is buy the US more time to adjust , more time to deleravge ... and maybe work on green infustructure ... things are just moving too quicky , we're not prepared for the scope of this current crisis and neither is the rest of the world ..

think of it as a shot of adrelinen right into good ole uncle sam's heart ... if we don't do something soon , and something drastic ... the future will be very bleak indeed ... while i cannot predict what one dollar gas would do to this country , it might be enough to get consumer confidence back to a level where even though we continue to have econmic problems the general pouplation will continue to spend ...

What i fear is a complete retraction of consumer spending , you know the snowball down the mountain , everyone pulls back , then more bussiness fail , that hits the headlines , people get even more scared , more people pull back , and it continues ... another factor that worries me is if retail sales fail and more companies go to liquidation , how will companies that are not in liquidation be able to compete with fire sales of merhcandise ? it will mirror what's going on in the housing sector with bank repo's lowering and destroying housing prices ...

EDIT: as for the airlines , say an airline is paying 60 dollars a barrel , we will just halve that to 30 , the companies should be able to pass along the savings to the public and hence people will still fly ... but yes , there will be more road trips ...

 

[Dog Wonder]

restart our econmic engine ... but seeing as how demand is deceasing.

realisticly the best my idea could do is buy more time to deleravge ... and maybe work on green infustructure

think of it as a shot of adrelinen though we continue to have econmic problems the general pouplation will continue to spend ...

In the interest of brevity I edited your post to the essential points.

 

[Rogue Rat]

:down: :down:

 

[Rogue Rat]

I have seen some asinine rants before but this guy take the cake.

How can anyone take you seriously when you cannot even use a simple program called

"Spell Check"?

 

[US1YFARE]

the problems we've had with gas are still going to be there

especially after one of those tuna burritos....i could clear out envoy in about 2 seconds flat

 

[Dog Wonder]

especially after one of those tuna burritos....i could clear out envoy in about 2 seconds flat

Please consider the damage you would do to the green infustructure.

 

[Rogue Rat]

Oh OK.....My mistake.......It is pretty obvious from the post that no one really takes you seriously.

 

[Dog Wonder]

think of it as a shot of adrelinen

Whch you have to do after the vodca is gone.

 

[Rogue Rat]

I guess I'm just not looking at the big picture. It must have something

to do with "infustructure" and the buying of "merhcandise".

 

[NCFL]

restart our econmic engine ... but seeing as how demand is deceasing.

realisticly the best my idea could do is buy more time to deleravge ... and maybe work on green infustructure

think of it as a shot of adrelinen though we continue to have econmic problems the general pouplation will continue to spend ...

In the interest of brevity I edited your post to the essential points.

Adrelinen. LOL. Sounds like a new line of trendy Nepalese tablecloths and napkins from Pottery Barn. Maybe US can start using them in Envoy? It will help the green infustructure.