jj9000 said:

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Airline bailouts on deck

Airline industry package to be proposed this weekend: coronavirus briefing

https://seekingalpha.com/news/3559879?source=ansh $PFE, $AAL, $UAL, $DAL, $LUV, $JBLU, $AAL, $UAL, $DAL, $LUV, $JBLU, $PFE

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You give me $LUV, $LUV, $LUV, $LUV, Crazy $LUV

iluvpoker said:

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claym711 said:

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The Fed is opening a SMall business new loan facility through banks. I believe it was 4 year term at near 0% interest. 95% of the loan will be owned by the Fed (read 95% forgivable). Can even be used to pay down principle of other debt!

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The loan is not 95%forgivable. What that is referring to is once the bank forecloses on your business for not paying your loans then the bank only needs to recover 5% when they sell your businesses assets to get their money back. The remaining proceeds would go to the fed and the difference between the loan balance and the proceeds would be eaten by the fed.

Clay is trying to make it sound like you can get a $5 million loan, pay off $250k and the fed will just let you off the hook for the remaining $4.75 million. That's not the case. The bank will still foreclose and use the proceeds to pay down as much of the loan balance as possible. And you will be out of business with a major hickey on your credit report.

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Neither the Fed nor banks are going to foreclose on any of these crisis loans. That's my conjecture. And well supported by all of their actions thus far. Dollar is going kaput anyways, and we will be out on digital coin held by Fed (legislation already leaked out on this)

These programs, especially PPP, are going to be gamed to the last dollar and much of it will be insolvent from day 1.

I just bought in on some airlines. I think this will be a quick money maker when we are allowed to move about.

Aggie Hunter said:

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I just bought in on some airlines. I think this will be a quick money maker when we are allowed to move about.

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How?

Bob Knights Liver said:

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Interesting. Do you have a link with more details on loan purpose requirements and such?

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Nope. Those paragraphs are from an article today that summarized today's fed actions. My guess is the fine print won't come out until next week from the Fed. My purpose for researching this was to verify Clay's claim that a business could get forgiveness for 95% of the loan. That appears to be false. That appears to help the banks be more aggressive with their loans since they will have a massive fed backstop.

One thing I think I learned is this program isn't for small businesses as the minimum loan is $1MM and it appears even at that level you would need minimum EBITDA to be $250k. So it looks like this program is geared more toward mid-market businesses. Which can probably use the help as they get squeezed sometimes between Wall Street and Main Street. These mid-market businesses are often customers or suppliers of WS and MS. The company that I sold fits in this category, though I don't know if they will look into this program.

I posted about the airline buyout at the open today, he probably bought earlier during the day or last few days.

Prognightmare said:

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I posted about the airline buyout at the open today, he probably bought earlier during the day or last few days.

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Ah I see

I am a rookie for sure, but I bought last Tuesday. I just fill every single sales person from pharmaceutical to pipe to valves and every body in between is going to be getting in buyers face to try and recover. So I dumped a bunch of money in airlines and hotels. Again I am a rookie and taking a risk.

Honestly, unless you're buying on margin, there isn't much risk to those purchases at these levels. Margin buying them, I wouldn't recommend.

I took United at $25 and LUV at $32

https://t.co/DjGHl5ziYF

Https://www.wsj.com/articles/feds-housing-market-concerns-increase-pressure-to-help-mortgage-firms-11586471411

Prognightmare said:

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Touchless said:

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I can only imagine how much work I'm actually going to get done tomorrow. What do you do during the week with the market closed?

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Channeling my inner Irish,

Hookers and blow.

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and good bourbon when you get thirsty!

claym711 said:

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shiphunt said:

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Can't wait for the market to somewhat normalize so the Fed haters and conspiracy theorists can leave the thread

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Ignorance isn't a good strategy.

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didn't sound like ignorance to me, just someone who doesn't want this to wind up as a thread on the Politics board, ugh!

Aggie Hunter said:

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No I just dumped a bunch of spare cash I had for other purchases I was looking at (land). I figure I can buy the land anytime after this is over. Again not sure if this is a gamble or not but I figured what the hell. I have been watching this thread for weeks just trying to learn and appreciate all the great info here.

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I'm not saying what you did was a bad move. I would just say that as a self-described newbie you need to have a measuring stick to whether or not your moves were good moves. I use the S&P 500 because it's the most commonly traded index fund.

So the goal of every move or set of moves is, "is this going to beat the S&P over x amount of time"

That's great info. This also maybe why my financial advisor told me to do it on my own and he would not include it in my retirement plan. I know it's a gamble but since I can't go to Vegas why the hell not!!!

I think Mtn_Guide make some good points. I bought AAL at what I thought was close to the lows. Already up 37% on my small position. Knowing when to sell is gonna be the hard part.

Is there a way to trade options for foreign companies?. Been looking at some of the Euro pharma companies (Roche, Novartis, Bayer) thinking about covid drugs and testing. But can't figure out how to do it. Looks like there aren't options on their ADRs.

I already own Roche shares. Took a beating after they dropped but should have bought more but may get another chance.

NVS is optionable

FYI, the CDC modifies and extends the Cruise Ship no sail order:

https://www.cdc.gov/media/releases/2020/s0409-modifications-extension-no-sail-ships.html

Not a surprise, just a huge impact on my company.

hedge said:

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this basically opens the floodgates for Big Corp to act stupid and irresponsible because they know they will get bailed out

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who acted stupid?

Great point. Wall St and Corps played the game, and won.

Question is, who lost?

well back in 08 it was the big banks, nobody acted stupid now due to the coronavirus but it goes to show that some companies (BOEING) are too big to fail and will get bailed out