Why Oil Price Collapsed, Airlines Plan For Possible 100,000 Layoffs, Millionaires Plunder PPP Loans (Video)
Why Oil Price Collapsed, Airlines Plan For Possible 100,000 Layoffs, Millionaires Plunder PPP Loans Video by Silver Report
The airlines have received an enormous bailout which has required they make no layoffs until September 30 2020, But that’s not the end of the story to get around this the big three airlines have been furiously furloughing their employees in advance of taking the loans and offered voluntary buyouts to a whole lot more since.
That isn’t the end of it though as the airlines acknowledge they will be a whole lot smaller and many industry insiders suggest that we could see as many as 100,000 layoffs come this fall. Demand for air travel has collapsed and it doesn’t look like a situation we’re on the path to resolving. I also wanted to cover the reason that oil prices have turned negative for the first time ever. Storage and demand are the main two problems as both are in short supply.
Many traders perhaps were unaware of the requirements to take delivery and since demand has been so low storage is almost full. Since there is no place to store this oil they were forced to sell at any price and liquidity dried up causing a lack of buyers. This is one scenario where we arrive at negative oil prices meaning they were willing to pay $40 for anyone to take this oil off their hands. Finally, we cover the massive companies that have seized the opportunity to swoop in to clean out the PPP loan fund from the SBA. Shake Shack has already agreed to return the $10 million dollars they took but there has been no word from Harvard which happens to have a $40 billion dollar endowment Colombia University, University of Pennsylvania, Baylor, and The University Of Michigan are among the others with large endowments and presidents with millions in salary.