We all know that GAC is already in a shaky place. If and when this virus gets worse, I say GD/GAC will absolute have another RIF. I bet they will be hemorrhaging cash once sales decline, suppliers going out of business, and production temporarily halts. Here we go...
2 replies (most recent on top)
Everyday, wealth in the world is being destroyed. Corporations will be under tremendous pressure to survive and as a result, won’t be buying business jets. The government is already taking desperate measures because our financial system is a house of cards. Government interest rate and tax policy forced a stock market bubble. As it deflates, everyone is flocking to an extremely unstable bond market. A typical government response to an economic crisis is to lower rates to encourage economic activity. That option is not available like it was in the past so the government is printing money and buying bad assets. If this causes inflation, the normal reaction is to raise interest rates to head off the inflation. Doing so will decimate the bond market because existing bonds lose value as new bonds with better rates become available. The tipping point is when the dollar loses its status as the world’s safe haven currency. We are literally engaged in an economic Russian roulette where any one of the governments remedies could trigger the fatal shot. I cannot imagine any scenario given the current circumstances where Gulfstream does not make significant cuts to include layoffs. I have a feeling that the already pressured sales group dialed back the deposit required to reserve an aircraft delivery slot so that makes it even easier for those facing economic strain to walk away from their orders.
I'm confused on how long beach is still open if california is shut down....that makes no f—ing sense