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Jim Cramer says Boeing 'will run out of money' if it is not 'saved'


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Awe....makes me sad. :lol: 

CNBC's Jim Cramer on Wednesday called on the federal government to follow through and provide assistance to Boeingand the aerospace industry as the coronavirus continues to upend the American economy. 

"It's not a plea for me. It's a plea for the 2 million workers who are in the supply chain," Cramer said on "Squawk on the Street."

Boeing on Tuesday said it was seeking at least $60 billion to assist the aerospace industry as it struggles with declining demand due to the coronavirus. President Donald Trump said the same day that he would support Boeing, which also is a top U.S. defense contractor. 

Boeing has already been facing significant financial troubles due to the two fatal crashes of its 737 Max plane, which has been grounded worldwide for a year. 

But as airlines face steep declines in demand from travelers, they have in turn been cutting costs, including deferring orders for new aircraft. U.S. airlines also are seeking government aid to get through the pandemic-induced slowdown to the tune of more than $50 billion

Boeing has plans to borrow earlier than expected the full amount of a more than $13 billion loan it secured in January, CNBC reported last week. 

"Boeing will run out of money" if it doesn't receive government assistance, said Cramer, who has previously worried about how the company's problems with the 737 Max could spillover into the rest of the economy

"We must save Boeing so to speak, both from the side that the airlines are going to get money, but if you don't have maybe one of the, if not the most important, company in the country solvent, then I think a lot of things are going to go wrong," Cramer said. 

Shares of Boeing hit a 52-week low of $89 intraday Wednesday, putting them down nearly 70% year to date. The stock, which hit a 52-week high of $398 in April, closed the session down nearly 18% at $101.89. 

Chicago-based Boeing said any government funding it receives "will be used for payments to suppliers to maintain the health of the supply chain." It has around 17,000 suppliers. 

Cramer said the government should take stakes in the companies to which it provides financial assistance. That includes not just Boeing but also for airlines, he said. 

"I prefer investments. If not investments, then payments to the employees and then let the shareholders kind of scramble," Cramer said. 

If the government provided money to Boeing and received a 25% stake in the company, for example, once Boeing was able to stabilize and overcome its challenges, "then it's going to be the greatest investment the American government ever made." 

"You've got to be really creative here," he added. 

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11 minutes ago, Matt said:

Boeing will weather this.  There's strong demand for their new gen 777 and expanded Dreamliner lineup.

Their quality control and ethics has sucked. If they don’t get those two areas in line it’ll be more headaches. 

Edited by spin_dry
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Let them fail and re-organize under better management.

Boeing isn't in trouble because of the Coronavirus.   Boeing is in trouble because it was poorly managed and went into this in a very weak position.   Their failures on the 737 Max are all on their own.  

There is not one of us that this won't impact financially.   Those that go into it prepared will come out fine.   Those that were in trouble or living on the financial edge won't.   We can't bail out everyone.  Prop up the systems in place like UI and other programs.   

Edited by Highmark
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10 minutes ago, Highmark said:

Let them fail and re-organize under better management.

Boeing isn't in trouble because of the Coronavirus.   Boeing is in trouble because it was poorly managed and went into this in a very weak position.   Their failures on the 737 Max are all on their own.  

There is not one of us that this won't impact financially.   Those that go into it prepared will come out fine.   Those that were in trouble or living on the financial edge won't.   We can't bail out everyone.  Prop up the systems in place like UI and other programs.   

You can say the same about all kinds of companies

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2 minutes ago, f7ben said:

You can say the same about all kinds of companies

Yup how it should have happened GM would have had its assets bought up and some company would still be making Sludges Chev pickup :finger2:today Hooknose 

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Just now, AKIQPilot said:

Those companies should be left to fail too.  If the government is always there to bail them out whats the point. 

The point is they can plan for the bailouts

Privatize gains and socialize losses. It’s perfect welfare for the rich 

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1 minute ago, f7ben said:

The point is they can plan for the bailouts

Privatize gains and socialize losses. It’s perfect welfare for the rich 

But it should not be.   I think we are both saying the same thing. 

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1 minute ago, AKIQPilot said:

Those companies should be left to fail too.  If the government is always there to bail them out whats the point. 

True, but certain companies have a more vital role to our national interest.  I have no problem with loaning Boeing money to bail them out, but it needs to be paid back. I also agree with the notion of not being able to use that money to buy back their own stock.  

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23 minutes ago, DriftBusta said:

True, but certain companies have a more vital role to our national interest.  I have no problem with loaning Boeing money to bail them out, but it needs to be paid back. I also agree with the notion of not being able to use that money to buy back their own stock.  

But who gets to chose which companies get bailed out and which don't?  Congress, with their hand out looking for a sweet gig in their afterlife or a nice campaign contribution?  

Edited by AKIQPilot
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15 minutes ago, AKIQPilot said:

Bit who gets to chose which companies get bailed out and which don't?  Congress, with their hand out looking for a sweet gig in their afterlife or a nice campaign contribution?  

And that is the problem. Croney capitalism was never good.

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Dont kid yourselves, there are going to be epic bail outs. I posted a thread yesterday that the Fed will conduct $1 trillion per day in repo operations. That bails out most of the banks right there. Boeing will get aid also. Probably autos and whoever else comes begging. Cuban is right tho, if you come with your hand out you dont get to set the terms going forward. 

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6 minutes ago, Anler said:

Dont kid yourselves, there are going to be epic bail outs. I posted a thread yesterday that the Fed will conduct $1 trillion per day in repo operations. That bails out most of the banks right there. Boeing will get aid also. Probably autos and whoever else comes begging. Cuban is right tho, if you come with your hand out you dont get to set the terms going forward. 

If it is at 19.2 % like Crysler's loan was. I don't have a problem with it.

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1 hour ago, AKIQPilot said:

But who gets to chose which companies get bailed out and which don't?  Congress, with their hand out looking for a sweet gig in their afterlife or a nice campaign contribution?  

That’s the 1 trillion dollar question.

1 hour ago, steve from amherst said:

And that is the problem. Croney capitalism was never good.

Agree

1 hour ago, Anler said:

Dont kid yourselves, there are going to be epic bail outs. I posted a thread yesterday that the Fed will conduct $1 trillion per day in repo operations. That bails out most of the banks right there. Boeing will get aid also. Probably autos and whoever else comes begging. Cuban is right tho, if you come with your hand out you dont get to set the terms going forward. 

Agree

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6 minutes ago, Ez ryder said:

good let them go under . they have proved there new jets can't be trusted any way.  

That goes for all of them.  Let the scraps and remains be bought up by somebody who can better manage the company.  

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