THIS IS SOCIALISM...The Trump administration just lent $700 million to a trucking company sued for ripping off taxpayers

[Muhammed]

A fucking trucking company!

So? You don't think we need trucking companies?

no...and we dont need bigots either

Could you explain why you think we don't need trucking companies?

The computer you use to post here got delivered by a trucking company, correct?

Or did the magic computer fairies deliver it?

What about the last meal you ate, did the fairies magically bring that too?

 

[Sunsettommy]

The amount of the loan seems absurd to me when its claimed worth is only $70 Million.

That's an enormous sum for a company whose stock had plunged 27% this year and was worth only $70 million as of Tuesday's close. And here's the kicker: The government sued YRC for ripping it off.

So they try to justify on military grounds.

Long-term competitive problems had taken the company's stock down 85% over the last five years. But shares of YRC (YRCW) shot up 60% in early trading on the news of the bailout.
US taxpayers will end up owning 30% of the company's stock as part of the loan agreement.

The loan is not part of the federal CARES Act meant to help small businesses. Instead, it is meant to provide help to businesses critical to national security. Treasury's statement said the loan was justified by the fact that the company provides a majority of the trucking services moving pallet-sized shipments of freight for the US military, a segment of the industry known as "less-than-truckload" or LTL.

The "loan" amount is absurd, but understandable when they are trying to buy part of the company, using taxpayers money, after all it is for the military....

 

[okfine]

A fucking trucking company!

Treasury just lent a troubled trucking company $700 million. The company was worth only $70 million

The US Treasury is giving a $700 million loan to YRC Worldwide, a troubled trucking company that warned in May it was in danger of going out of business.

edition.cnn.com

Greasy palms.

 

[basquebromance]

A fucking trucking company!

So? You don't think we need trucking companies?

no...and we dont need bigots either

Could you explain why you think we don't need trucking companies?

The computer you use to post here got delivered by a trucking company, correct?

Or did the magic computer fairies deliver it?

What about the last meal you ate, did the fairies magically bring that too?

we dont need trucks polluting the environment...just like we dont need homophobes...just like we dont need xenophobes...just like we dont need religious bigots

 

[Muhammed]

A fucking trucking company!

So? You don't think we need trucking companies?

no...and we dont need bigots either

Could you explain why you think we don't need trucking companies?

The computer you use to post here got delivered by a trucking company, correct?

Or did the magic computer fairies deliver it?

What about the last meal you ate, did the fairies magically bring that too?

we dont need trucks polluting the environment...just like we dont need homophobes...just like we dont need xenophobes...just like we dont need religious bigots

You are dodging the questions, moonbat.

 

[SassyIrishLass]

Was 11.2 billion to GM in 2009 Socialism?

Remind me who was POTUS at that time

 

[dblack]

A fucking trucking company!

Treasury just lent a troubled trucking company $700 million. The company was worth only $70 million

The US Treasury is giving a $700 million loan to YRC Worldwide, a troubled trucking company that warned in May it was in danger of going out of business.

edition.cnn.com

its bullshit but its not socialism is crony capitalism,,,

That's how "socialism" works in the US.

 

[SassyIrishLass]

A fucking trucking company!

So? You don't think we need trucking companies?

no...and we dont need bigots either

Could you explain why you think we don't need trucking companies?

The computer you use to post here got delivered by a trucking company, correct?

Or did the magic computer fairies deliver it?

What about the last meal you ate, did the fairies magically bring that too?

we dont need trucks polluting the environment...just like we dont need homophobes...just like we dont need xenophobes...just like we dont need religious bigots

Tell me how freight is to arrive from point A to point B, C D, etc without trucks?

You're looking ridiculous..... again

 

[progressive hunter]

A fucking trucking company!

Treasury just lent a troubled trucking company $700 million. The company was worth only $70 million

The US Treasury is giving a $700 million loan to YRC Worldwide, a troubled trucking company that warned in May it was in danger of going out of business.

edition.cnn.com

its bullshit but its not socialism is crony capitalism,,,

That's how "socialism" works in the US.

I always said trump was a progressive,,,

 

[Moonglow]

PPP is socialism or state capitalism but the Trumpets love dat program..

 

[dblack]

A fucking trucking company!

So? You don't think we need trucking companies?

Do you think government should be deciding what we "need"?

 

[dblack]

PPP is socialism or state capitalism but the Trumpets love dat program..

Another rousing rendition of "It's Different When We Do It!"

 

[Tom Paine 1949]

This case typifies several phenomenon at once: growing state capitalism, increasing corporate indebtedness in the U.S. economy since the 2008 bust in which many zombie companies remain in the real economy, and of course crony capitalism among connected “essential” MIC providers and/or well-connected crony capitalist money lenders.

Earlier shareholders in YRC have long been wiped out. Well-connected bond holders took over the corporation, and are now being both protected and partially replaced by government “ownership.” Of course the partial government “ownership” will eventually be liquidated — one way or another.

The fact that YRC was long a favorite military logistics company, is mostly unionized and based in Middle America, has expanded by buying into Chinese logistics companies (apparently adding to debt and not returning hoped for profits), just adds color to the story. Other companies could easily take over YRC business if the company was just liquidated via bankruptcy, but political factors clearly complicate this. The unions have already taken extreme wage cuts. Why the other two large YRC competitors are doing better is not explored in any of the articles I read.

Wikipedia reports only that “YRC reported a net loss of $974 million for its 2008 fiscal year. In 2009 it again reported a net loss of $622 million. Towards the end of 2009, YRC narrowly averted having to file for bankruptcy protection by successfully persuading its bondholders to exchange their $470 million in bond notes for roughly 94% of the company’s shares..... Nonetheless its share price declined in year 2010 more than 80%, raising in 2011 suspicions of Death spiral financing. In September 2011 the company completed a financial restructuring that has essentially wiped out any shareholder equity. All employees, Teamsters included, took massive pay cuts in order to keep YRC in business.”

Without Uncle Sam and the Federal Reserve bailing out over-indebted “zombie corporations” in both the real and “private equity” economy, which is a process that has only been sped up (and covered up) by the COVID-19 contraction, thousands of small, medium size and “too big to fail” U.S. corporations would already have failed. U.S. dollar supremacy and our over-weight position in world economy would also long since have been profoundly shaken and reduced.

Call it what you will.

 

[dblack]

...

Without Uncle Sam and the Federal Reserve bailing out over-indebted “zombie corporations” in both the real and “private equity” economy, which is a process that has only been sped up (and covered up) by the COVID-19 contraction, thousands of small, medium size and “too big to fail” U.S. corporations would already have failed. U.S. dollar supremacy and our relative weight in world economy would also long since have been profoundly shaken and reduced.

Letting unprofitable companies fail would, in the long run, substantial strengthen our economy, and the dollar.

 

[Muhammed]

A fucking trucking company!

Treasury just lent a troubled trucking company $700 million. The company was worth only $70 million

The US Treasury is giving a $700 million loan to YRC Worldwide, a troubled trucking company that warned in May it was in danger of going out of business.

edition.cnn.com

By George, I think you have got it! That is indeed socialism, trump style.

 

[Agit8r]

Another reminder that merit-based economy is the stuff of romantic mythology.

 

[candycorn]

Is this corona aid?

No. It’s not part of the CARES act.

 

[Norman]

Another reminder that merit-based economy is the stuff of romantic mythology.

Daily reminder:

Communism has never worked anywhere.

Thank you for hearing the reminder.

 

[dblack]

Another reminder that merit-based economy is the stuff of romantic mythology.

Nah - there's still plenty of merit in our economy. Most of it, I'd argue. But there's also plenty of state meddling fucking it up. And Republicans are no better than Dems. They just have different sponsors.

 

[candycorn]

It's a stimulus loan just the way Obama lent millions to GM and Chrysler. Did you have problems with that?
Either you are disingenuous now or you were then. Which is it?

there are 4 major domestic auto makers. There are something like 2 dozen Nationwide LTL carriers on top of FedEx, UPS, DHL, the USPS, all of the regional carriers, etc...

false equivalence