Jump to content

Citi buys French-made jet with bailout dollars


JayW

Recommended Posts

Well, here's the good news, though. They were given $45 billion, ostensibly to provide liquidity/stability for the express purpose of increasing their loan activity.

 

Drum roll.

 

The outstanding volume of outstanding loans is now LESS than it was before we gave them that money with that express purpose.

 

Someone's running to the wrong goal line. :grin:

Link to comment

If the government gave me a $45 billion dollar bailout, I would not buy a new Falcon 7x for $50 million. That would be irresponsible.

 

Instead I would buy a used 7X AND a P-51. That's not only better money management, it's also a lot more fun.

 

 

 

 

p51-4463864-main.jpg

 

On a happier note, that 7X has the cleanest wing I have ever seen.

 

FR0609f1.JPG

 

 

 

 

Link to comment

A mere pimple on the elephant's ass. At least it stimulated somebody's economy.

 

From Bianco Research. Original here.

 

The current bailout compares to all these “big budget events” combined

  • Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
  • Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
  • Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
  • S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
  • Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
  • The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
  • Gulf War II / War on Terror: Cost: $551b, Inflation Adjusted Cost: $597 billion
  • Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
  • NASA (Cumulative): Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

Collectively, all the “big budget items” above totaled $3.92 trillion.

Only one big budget item in American history comes close to matching the cost of the credit crisis:

  • World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion

Of course the difference between these items above and the credit crisis is those

events were expenses whereas the bailout for the credit crisis is considered to be a

loan. Presumably the government will get most of its money back when these loans

are paid back. Nevertheless, the initial outlays, all done in 2008, vastly exceed

anything seen in American history.

Link to comment

I can't speak to why they decided not to move out their position from Dassault. The F7x is a great plane though. The only thing I would call close to it would be the G550 by Gulfstream. Dassault is French, but a LOT of the components are American. At my company alone there are probably several hundred people who support that airplane. There are many other US companies that benefit from Dassault too.

 

The fact that they are selling the 2 900's looks like they will be downsizing and the F7X is a lot more efficient. Corporate aircraft are expensive. But they also can be tied to a lot of US jobs all over the country. It is also one of the last areas where the US is still the dominant manufacturer.

 

Oh and the Dassault wings really is amazing. The F7X is uber worthy.

 

Link to comment

FR0609f1.JPG

 

That is a really cool picture, but I still want my tax money back. Looks like a good recipe for hydroplaning with that speed and all that water. I hope the tires aren't bald. :eek:

 

Jay

 

 

Link to comment

Citi announced this morning that they were canceling the purchase due to public pressure. They claimed that they were selling off other jets in order to buy this one, but it was still a PR fiasco.

Link to comment

If there are any more of these "fiasco's" look for a few more layoff notices to come out from places like Witchita and Savanah. Not to mention all the other tier 2 and 3 suppliers trying to keep people employed. A real win for the taxpayer here

Link to comment

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...