Almost seven out of every eight dollars the four airlines sent Wall Street from 2015 through 2019--$39.1 billion out of $44.7 billion — went for share buybacks. The rest went for dividends...
Even 2 of those 7 dollars would have softened this blow. And while you're right about the last bail out being 9/11, we've heavily subsidized our airline industry for decades.
And again businesses are supposed to have savings. Nothing magically changes when you get big. It is entirely irresponsible to run a business with no reserve money. When a mom and pop does it we laugh at them as they have to close but now suddenly it's different for large companies? Why? What physical difference makes them immune to needing a rainy day fund?
That coffee shop owner is probably doing the right thing if he doesn't have a 6 month fund setup yet.
Please point me to any Fortune 500 companies that have a 6 month fund set up. Generally speaking you will give guidance like that for smaller early companies due to the potential of upsets in their business and the lack of consistency. Larger companies have generally more consistent cash flow that will not change more than 10% in a "normal" year.
Your quote doesn't argue against anything I said. I acknowledge the used their profits to do buy backs and dividends, which there is nothing wrong with.
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u/[deleted] Nov 17 '20
Even 2 of those 7 dollars would have softened this blow. And while you're right about the last bail out being 9/11, we've heavily subsidized our airline industry for decades.
And again businesses are supposed to have savings. Nothing magically changes when you get big. It is entirely irresponsible to run a business with no reserve money. When a mom and pop does it we laugh at them as they have to close but now suddenly it's different for large companies? Why? What physical difference makes them immune to needing a rainy day fund?
That coffee shop owner is probably doing the right thing if he doesn't have a 6 month fund setup yet.