Carnival gets fed bailout

[seaman11]

sorry if posted already, scanned the first 2 pages didnt see it.   for those worried if they will go under, rest assured . 

 

https://www.dailykos.com/stories/2020/4/27/1940788/-Turns-out-Carnival-Cruise-Line-got-a-backdoor-multibillion-dollar-bailout-from-the-federal-reserve

[ray98]

.....nothing but a political hack job article.

[4hunters]

25 minutes ago, ray98 said:

.....nothing but a political hack job article.

Exactly. 👍🏻

[seaman11]

48 minutes ago, ray98 said:

.....nothing but a political hack job article.

meaning they didnt get a bailout?

[ray98]

38 minutes ago, seaman11 said:

meaning they didnt get a bailout?

 

 

Correct.....the bailout from Congress and the money the Federal Reserve pushed out to lenders are two different things.  Congress is funded by the taxpayers, the Fed is self financed and operates independently of the legislative and executive branches.  Carnival simply borrowed some of this newly available capital from lenders.

Edited April 30, 2020 by ray98

[Denverdonkeys]

I dont think they did in terms of a direct money. it does not sound like the FED bought their debt. it sounds like the FED flooded the market by overpaying for debt, so it lowered yields. As a result the consortium took a lower interest rate on the debt Carnival issued.

 

They clearly benefited indirectly. However, not BILLIONS worth. I think they issued 6 billion in debt, so 1% would be $60 Million a year in savings. I think they got 4% in savings. So over the life of the debt (i think 3 years), it saved them maybe like $720 million. all round numbers of course.

[seaman11]

52 minutes ago, Denverdonkeys said:

I dont think they did in terms of a direct money. it does not sound like the FED bought their debt. it sounds like the FED flooded the market by overpaying for debt, so it lowered yields. As a result the consortium took a lower interest rate on the debt Carnival issued.

 

They clearly benefited indirectly. However, not BILLIONS worth. I think they issued 6 billion in debt, so 1% would be $60 Million a year in savings. I think they got 4% in savings. So over the life of the debt (i think 3 years), it saved them maybe like $720 million. all round numbers of course.

2 hours ago, ray98 said:

.....nothing but a political hack job article.

well i guess however its done, they did get some relief. and should survive this thing. 

[rtazz17]

1 hour ago, seaman11 said:

well i guess however its done, they did get some relief. and should survive this thing. 

Wouldnt say that. They may need to survive quite a long time

[WhaleTailFlCruiser]

They didn't get a bailout. 

[klfrodo]

1 hour ago, seaman11 said:

well i guess however its done, they did get some relief. and should survive this thing. 

HUGE difference between a bailout as you led people to believe with you thread title, and carnival taking out a business loan as all of us do now and then.

In my opinion a Bail Out would be my parents buying me a house. A loan would be me taking out a loan to buy my house which I have to pay back.

I can still file a Chapter 11 reorganization bankruptcy on my home loan.

Edited April 30, 2020 by klfrodo

[firefly333]

Just now, WhaleTailFlCruiser said:

They didn't get a bailout. 

We know... that's why people posted it's a political hack job.

 

I actually listened to the fed chairman and a reporter afterwards asked about buying the carnival bonds. The fed chairman said the fed gets a whole bundle, cant pick and choose which ones to buy. They are buying bundles of bonds to pump stimulus into the economy. 

 

Note his words were the fed CANNOT pick and choose which bonds in the bundle are bought. Any publically held company can issue bonds or additional stock. That's why they dont want publically held companies applying for the small business loans, they have other ways to raise cash.

[seaman11]

12 minutes ago, klfrodo said:

HUGE difference between a bailout as you led people to believe with you thread title, and carnival taking out a business loan as all of us do now and then.

In my opinion a Bail Out would be my parents buying me a house. A loan would be me taking out a loan to buy my house which I have to pay back.

I can still file a Chapter 11 reorganization bankruptcy on my home loan.

i lead ppl to believe? that was the article title, s doh 

[DAllenTCY]

"Junk bonds"......I've heard that before.

 

A failure....which led to a previous collapse of the US economy.

 

 

David

[BlerkOne]

5 hours ago, seaman11 said:

i lead ppl to believe? that was the article title, s doh 

 

The article said backdoor bailout, and even that was deceptive.

[mpdog42]

15 hours ago, seaman11 said:

sorry if posted already, scanned the first 2 pages didnt see it.   for those worried if they will go under, rest assured . 

 

https://www.dailykos.com/stories/2020/4/27/1940788/-Turns-out-Carnival-Cruise-Line-got-a-backdoor-multibillion-dollar-bailout-from-the-federal-reserve

What was the purpose of posting this outright Trash!!