Cub Driver wrote:
> James Robinson wrote:
>
>> The Feds initially gave all the airlines a total of about $5 billion
>> right after 9/11 though the airline stabilization board, and offered
>> to back loans up to $15 billion. Only a few of the airlines got
>> loans with the government backing.
>>
>> Therefore, to some extent, you are both right.
>
> We live in a world where five billion dollars outight, plus "a few"
> loans" amounting to $10 billion, may not be a bailout?
They only guaranteed about $2 billion of the loans. The airlines
couldn't convince the government that their reorganization plans would
result in viable companies, so they couldn't get the loans. Since they
weren't outright grants, but instead only guarantees backing loans, they
weren't really part of a bailout. |