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Well, no Professor Reich, not really

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But the airlines are big enough to get their own loans from banks at rock-bottom interest rates. Their planes and landing slots are more than adequate collateral.

Remarkable how little he knows about business, isn’t it?

Given that no one’s flying at present the planes and slots aren’t worth all that much. Not because they won’t have long term value, but because no one has any money to buy them today. This their value as collateral is pretty low.

Note the usual casuistry:

Senate Republican relief package, giving airlines $58bn

Lending, not giving.

the Republican bill is absurdly stingy toward people, stipulating a one-time payment of up to $1,200 for every adult

Giving not lending. And stating it per person rather obscures that it’s $300 billion or so, very much more than the *loans* to the airlines.

The more I hear from Reich the more I despise him.


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