Packaged bankruptcy: Airlines Edition
Why stop at Chapter 11? Read all of them to be the true erudite
Mindless Twitter Rantings
Recently, I got into a bit of a tiff with one of my favorite authors and essayists, none other than Taleb.
By tiff, I mean I disagreed with a certain statement he made and retweet quoted him:
Nassim Nicholas Taleb @nntalebExplain to me why we should spent taxpayer money to bailout companies (airlines) who spent their cash buying their own stock so the CEO gets optionality, instead of having a crisis buffer. We should bail out individuals based on needs, not corporations. #Moralhazard
Armed with my tech-trash persona of being ‘fiscally conservative but socially liberal’, I went on a 12-tweet rant to demystify the consequences of a bankruptcy for the airline industry and why I thought it was in everyone’s benefit to rescue them:
Prof. Taleb went on to add more tweets to his original idea:
— and he ended up retweeting the person who replied to me:
nikola @nikola_sock@VirenMohindra @nntaleb I don't think that prof Taleb is against helping Boeing or airlines, but least they could do is wipe out common share. Next time, shareholders will ask for more accountability from management.
I ended up self-isolating after this debacle. He continues with his socialistic tendencies below:
My extended conversation with @nikola: