Again, where are the CEOs of the big banks of the world?? The world bailed them out several times in the last 30 years, and now they will just call on everyone's debt, company and individuals, like nothing is going on? Am I the only one in the world who thinks the banks should sacrifice big time and have a debt and loan moratorium for everyone? I don't hear anyone else here or in my personal circle say so.
Yes but banks will have problems of their own.
Banks loan money and then lend it with margin against risk. When one customer defaults they can take amorstorium, but when literally everyone is on the brink of defaulting, things get complicated.
Italy was proactive in this as now anyone can suspend loan repayments at will due to force majeure. The Italian govrrnment will then provide a support package to the banks to substitute that cash flow loss which banks can the return as soon as the loaners can start making payments.
This avoids that everyone goes insolvent at the same time.
A similar system could work for the airline industry, or government can opt to capitalise the airlines directly by diluting the exisitng shareholding.
One more solution is helicopter money. A one-time gift to airlines.
However, the right solution would be IMO to involve the airlines in the resolution of the crisis.
Running out of beds in Lombardy,? Charter an AZ A330 to send pax to Sicily for treatment, pay 10 million Euro's for the charter instead of 100.000EUR.
Problem is that all companies tank at the same time, from self-employed up to the multi nationals. Singeling out industries won´t do it, this has to be done in a blanket way with all its pros and cons. IMO the only way is for countries to order banks to hand out loans as requested by companies on regular or government-set interest terms, and have these guaranteed by the government, EZB, FED or even IMF if necessary. At the same time shutting down all stock (and similar) markets to avoid people using this money to gamble.
Practically it means that there will be a certain interim period where all liquidity is guaranteed until things start to return to normal and these guarantees are taken down step by step until they are fully removed.
It avoids priorizing specific industries, especially now where the focus is on stopping or slowing down this.
Won´t be easy decisions by any means though.
Flown: A319/320/321,A332/3,A343/346, A359, A380,AT4,AT7,B712, B732/3/4/5/7/8/9,B742/4,B752/3, B762/763,B772/77W,CR2/7/9/K,ER3/4,E70/75/90/95, F50/70/100,M11,L15,SF3,S20, AR8/1, 142/143,... 330.860 miles and counting.