Avantisteam Says: Opinion/Letter: WHY ARE WE BAILING OUT A BUNCH OF LOSERS? B... - Jonathan Cartu CPA Accounting Firm - Tax Accountants
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Avantisteam Says: Opinion/Letter: WHY ARE WE BAILING OUT A BUNCH OF LOSERS? B…

SitNews - Stories in the News - Ketchikan, Alaska

Avantisteam Says: Opinion/Letter: WHY ARE WE BAILING OUT A BUNCH OF LOSERS? B…




SitNews - Stories in the News - Ketchikan, Alaska



Viewpoints: Letters / Opinions



WHY ARE WE BAILING OUT A BUNCH OF LOSERS?

By David G Hanger, EA, MBA

 


July 25, 2020

Saturday PM


This question is prompted in the first instance by the report that no less than ten jewelry operators have shown up in town with their hands out for big bucks. That obviously invites the question why the hell should the permanent residents of this community be doling out local relief funds to finance the bad bills of a bunch of folks who do not even live here?

But when one stops and thinks about it a little longer the question becomes why should we be bailing out any of these losers? I realize it is not their fault they are losers; both the business environment and the general environment have at least for the time being wrecked the whole industry. They did not do it; it was done to them.

But how is that any different from all the people who have been put in unemployment lines? They did not do it; it was done to them.

So let’s see. How is this going to work locally? The biggest losers get the biggest money? The landlords get bailed out on their $20,000 a month rent charges because there is no one to pay their over the top rent, so our local government gratuitously pays them instead?

Next we propose to pay how much to Taiwan, China, Florida, Arizona, and Timbuktu for inventory ordered and delivered that cannot be moved? How is giving money to Taiwan or Timbuktu helping anything in Ketchikan?

What about free enterprise? All you reactionary rednecks don’t want the government involved in anything you do. You are free and independent even to the point of killing your neighbors with Covid19 because of your absolute obsession with “freedom of expression.” Free enterprise should be free enterprise, which means if you are a loser, you go bankrupt. That principle is even in the games you give your children.

But one gets the impression we are going to bankrupt and impoverish all the little people, the grunts and the employees, while in the meantime enriching to the point of engorgement the biggest losers. That is certainly flipping free enterprise on its end. So how exactly does that work, whose ass do you have to kiss to be the first in line? Business risk is apparently something suddenly government is supposed to always insure you against, so long as you are a big enough loser.

The right wing no longer has any bearings, let alone scruples or integrity.

Since when is it the appropriate thing in this country to bail out people who make bad business decisions? Just because you don’t know how to manage an inventory, thus find it necessary to order everything up front, does not mean the rest of us should be on the hook for $300,000 that you owe to vendors.

What none of you are really capable of comprehending is the magnitude or the duration of this event, let alone the uncertainty of it. For perspective let’s start with this simple reality: From beginning to end the Spanish Flu lasted for two-and-a-half years. It is how many months since March?

You operate basically on the wavelength of the sophist on TV who pretends to be smart and witty with his nonsensical palaver about how if you plan out a problem over three months that in fact lasts nine months, woe indeed is you; but if you plan out a problem for nine months that only lasts three months, by comparison we are in the “tall cotton.”

But that indeed is where your problem begins and basically ends because your thinking is completely short-term and ignorant. You want this problem to go away soon, so you expect it to go away soon; but wishing it away is not going to make it happen.

Here are a few other basic facts with which you need to contend: 99 out of 123 cruise ships had coronavirus outbreaks, and while all of these ships have been anchored and not carrying passengers for months, nine of these are still quarantined with active cases aboard. Holland-America is now selling its ships for cash. How many remains to be seen. Norwegian Cruise Lines has used its ships to underwrite its last gasp round of stay-afloat loans, and will be bankrupt within a matter of months.

The banks are in great peril. They replaced all that substandard mortgage paper that led up to 2008 with a whole bunch of substandard corporate paper, most of which is off the books (and Wells Fargo is a very big player here), so right around the corner is a prospective meltdown.

When the unemployment benefits and the other small gratuities given to the lower classes end here in the next week, unless continued the markets will begin to tumble. The markets have been playing with monopoly money since March; the numbers sustained on the markets are completely artificial, the result of printing trillions of dollars of worthless paper so the kiddies can continue playing a while longer.

I do not advise trusting Moderna. Trump’s vaccine czar is clearly more motivated toward enhancing his stock values than in producing a working vaccine. This group of self-promoters so far has stuck needles in eight arms, then announced to the world incredible progress which jacked up the stock market by a thousand points and made our vaccine czar $3 mlllion bonus in one day. Here recently once again another stock value push as they announce incredible progress. We will see, but I do not trust loudmouths whose primary purpose seems to be grubbing for dollars on the stock market.

The history of vaccines reinforces my position. The shortest time ever to bring a vaccine to market is four years, and that is just to the pre-production stage. They still had to produce the vaccine in quantity and then distribute it.

Working in our favor is the fact that the factories already exist to produce a vaccine that does not yet exist. The bet on the come on this one is big, and the effort worldwide is prodigious. But that is no guarantee that those factories do not gather dust for yet some time before being activated.

We are still in the first wave of this damned thing; more than 75,000 new cases yesterday; 220,000 dead projected by mid-October; and they are expecting a second wave!!! How does a 2021 cruise ship season fit into that schedule?

I think the probability of a cruise ship season of any consequence in 2021 is less than 10%. I realize the yearning to get free, but I think there will still be an incredible number of stumbling blocks in the way. Moreover short-term planning for a long-term problem is a sure guarantee of disaster.

There is a serious question how much of a town is going to exist after all this clears. Being led by a bunch of privates and…

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