Vail Gets Break from Lenders will offer new Bonds

https://finance.yahoo.com/news/ski-resorts-virus-hot-spot-220258733.html

So Vail gets a stimulus bailout. Maybe not direct, but the lenders are feeling more flush from the Fed, so....

Everyone is gonna get a break from lenders before this is over. There is simply no point in forcing companies into bankruptcy over interest payments now when the Fed can just print money. Last week I was offered a consolidation loan at zero percent. I think there's an even better offer coming, like write down the balance by 10 or 20 percent, and zero interest.

No one has any experience with an economy like this.

mm

A better offer? Meaning people are going to take a loss on your word that you would pay them back? I mean if you can't that's one thing but stiffing people just cause you can is such a trump thing to do.

For myself I wouldn't call not reporting late payments or charging late fees etc etc a break from lenders. That's the only thing we mere mortals are going to get.

Everyone is misunderestimating how bad the economy is and how bad it's gonna get. Things that were unthinkable 7 weeks ago - like adding $600 to unemployment insurance or a $1200 check for everyone- happened overnight. Banks aren't gonna get 29% on credit card balances anymore, and they'll be happy to get a fraction of the principal.

The economy is in full collapse. There were 30 million new unemployment claims in 6 weeks, others are on the payroll only because of government loans that will be forgiven, and still others have taken pay cuts as high as 40%. There's no way that $13 TRILLION in consumer debt is ever gonna be paid off.

We're gonna live in a different world when this is over.

mm

Milo Maltbie wrote

There's no way that $13 TRILLION in consumer debt is ever gonna be paid off.

We're gonna live in a different world when this is over.

Can you explain the mechanism to me? How does this go down.

No one knows how this will work out, except that it will be chaotic.

Every institution, except the military, is held in contempt by large parts of the country. The government and political parties, banks and Wall Street, corporations, the church, all of them. At least a fifth of Americans believe science is a grand conspiracy theory.  What happens if there can't be an orderly election on November, or if one or both sides don't accept the outcome? What happens if some governors refuse to allow foreclosures or evictions?

The only thing for sure is that we are now much less wealthy than we thought we were.

mm  

Holy doom and gloom

No shit but he lives right in the cess pool. I can't imagine.

Milo’s glass isn’t half full.  It is smashed into little glass shards on the floor never to hold water again.

I had to read this topics title 4 times kept thinking it said
Re: Vail Gets Breck from Lenders will offer new Bonds
I was like don’t they already own Breck
It was a long day of video conferences today

tjf1967 wrote

No shit but he lives right in the cess pool.

Where do you think I live? The only cesspool I've ever seen was in Vermont. That was 20 years ago but I think it's still there.

It's true I'm chronically pessimistic, and staying home is making it worse. Being retired makes it worse because I don't even have the pleasure of avoiding work. I live in a condo now so I can't even do home improvement projects. If this lasts until the end of summer I may have to paint the place.

But I'm not wrong about how bad this is. Unemployment is reaching Great Depression levels, even with an $800 billion Payroll Protection Program. Most mortgage payments can be suspended for up to a year. Every retail and office building will have to operate at half capacity for the foreseeable future. Mass transit and air travel is frightening to most people.  

During the Depression, the government made it illegal to own gold and paid $20 an ounce for surrendered gold, then immediately set the price at $35 an ounce. That effectively devalued the dollar by 40% and allowed the Fed to print unlimited amounts of currency. Even with that and all the other New Deal measures, the depression didn't end until WW2, which is still the most costly and wasteful government program ever.

How does this end, without any political (or scientific or intellectual or religious) leadership capable of forming a consensus?

mm
 

Milo Maltbie wrote

. Even with that and all the other New Deal measures, the depression didn't end until WW2, which is still the most costly and wasteful government program ever.

How does this end, without any political leadership

You're talking too much sense. Harv is gonna come along and suspend you.

Milo Maltbie wrote

Everyone is misunderestimating how bad the economy is and how bad it's gonna get. Things that were unthinkable 7 weeks ago - like adding $600 to unemployment insurance or a $1200 check for everyone- happened overnight. Banks aren't gonna get 29% on credit card balances anymore, and they'll be happy to get a fraction of the principal.

The economy is in full collapse. There were 30 million new unemployment claims in 6 weeks, others are on the payroll only because of government loans that will be forgiven, and still others have taken pay cuts as high as 40%. There's no way that $13 TRILLION in consumer debt is ever gonna be paid off.

We're gonna live in a different world when this is over.

mm

I agree with your general argument, but, I'm more cynical about it all. No way principal will be written down for the average schmoe on any loans, and 29% credit card rates are here to stay. After all, the political system that owns us are presenting an old senile rapist as an alternative to the old senile rapist incumbent, but this old senile rapist, our supposed savior in the time of plague, literally wrote the laws that make it impossible to discharge student debt and extremely difficult to discharge credit card debt.

But I'm just another old retired white guy isolating in a condo that could use a paint job, too. What do I know.

Benny Profane wrote

. No way principal will be written down for the average schmoe on any loans, and 29% credit card rates are here to stay...

...wrote the laws that make it impossible to discharge student debt and extremely difficult to discharge credit card debt.

But I'm just another old retired white guy isolating in a condo that could use a paint job, too. What do I know.

You're both retired white guys who are relatively wealthy compared to the population as a whole. This economy is catering to people like you.

Everything remains cheap because companies (whose stock you own) pay garbage wages throughout the entire supply chain. Since companies pay such garbage wages, people take on debt and pay interest to banks (whose stock you own). You guys get cheap groceries, beer, & ski passes. Workers at grocery stores, breweries & ski resorts get what? $12/hour? Maybe food stamps? And a bunch of debt?

The owners (of stock, of businesses, of houses, etc.) are doing fine because the people who design all the laws are owners of stuff

The economy in this country is very top-heavy. It doesn't seem sustainable to me, but we're not allowed to talk about solutions, so I'll just congratulate you two guys for winning and never getting tired of winning.

MC2 5678F589 wrote

You're both retired white guys who are relatively wealthy compared to the population as a whole. This economy is catering to people like you.

You're right about that. I'm the whitest guy you ever met. It sucks to be old, but I have a secure income and now I can just stay home and yell at the neighborhood kids to stay off my lawn. I don't even need to spend money in bars where the women won't look at me anymore. So far the worst thing for me has been that the Mexicans who used to take care of my lawn can't get visas now.

Now that I think of it, I don't understand why I'm so cranky.

mm

Milo Maltbie wrote

Now that I think of it, I don't understand why I'm so cranky.

Fwiw, you don't seem cranky to me. You just seem to have a clear understanding of what is going on in the world.

MC2 5678F589 wrote

You just seem to have a clear understanding of what is going on in the world.

I understand that I am personally in a very good situation. I worry about my children and my grandchildren. IRL I'm still pretty cranky.

mm

I thought you live in NYC...by cess pool I meant right in the thick of the mess.

OK BOOMERS!!  you two should just chuck yourselves off a cliff and save us a few bucks down the road.  That what this virus was meant for.  The world needs a cleansing, most of the high risk got away.. this time.  to soon for jokes??