LogFAQs > #946090049

red sox 777 posted...

Well, "bailout" isn't a technical term. The GM shareholders didn't get bailed out. The employees did.

But uh, I wouldn't invest in any company that I think would go bankrupt but for government action to bail it out. That's too risky for me. A solvent company would just say no to a "bailout" that requires going through bankruptcy.

Well, yeah. Exactly. That's what I would be afraid airlines are headed towards. Bankruptcy is actually a possibility for a lot of players in some industries, and Airlines could very well be one of them.

It's like investing in a movie theatre right now - there's a good chance most movie theatres are going to go bankrupt. Your investment will be lost. The government probably won't bail those out. Airlines, yeah, they'll want to keep those going. But that doesn't mean we'll be protected as shareholders.

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