Governments are once again splurging to keep big companies afloat

encouraged to set enough aside for a rainy day. The covid-19 cloudburst means even the most prudent companies are rapidly exhausting their cash. Many will need a bigger umbrella that only the state can proffer.

Some flag-carriers have already been bailed out: Alitalia has been nationalised , Dubai has rescued Emirates and Singapore Airlines raised equity with the backing of Temasek, the city-state’s sovereign-wealth fund.In America, where two-thirds of global airline profits are made, vigorous lobbying helped carriers secure their own tailored package. A $50bn mix of loans and grants has been earmarked to keep them aloft.

The financial sector is the other traditional, if less beloved, candidate for state support. Insurers’ liability to covid-19 is, for instance, still unclear. Politicians in America are urging insurance firms to indemnify holders of policies protecting against business interruptions. The companies say these do not cover pandemics, and claim they could be on the hook for losses nearing $400bn a month if forced to do so.

ThePandemicEffect

And you very happy

damn i was kinda hoping they would increase

Compare the financial losses of airlines with the economic costs of containing a pandemic that got out of control because of airlines initial unwillingness to ground all passenger services in February.

For an industry with razor thin margins to begin with, this will be a death kiss

Revenue from idling-how much is that worth? Is that like cutting out the amount of calories burned from running if we count the calories used simply by standing?

Fake News. Very obviously so. Go and see a proper economist.

Did you ever expect anything else from these people?

At what point does corporate borrowing - at record levels - become unsustainable? Seems the only cure for an overdose here is more medicine. I'd love for The Economist to do a 'What if...' Segment on corporate debt reaching a tippingpoint

Too big to fail. Then socialise losses. But socialism has not worked anywhere as a full system of economy. If China cannot make it work no one can.

Well this package does contain help for people if big industries go down then once this virus is over they will go under thus lots of jobs lost?

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