This morning on CNBC’s Squawk Box, during a discussion of the challenges America’s biggest exporter — Boeing — is dealing with as airline traffic grinds to a halt, TV personality Andrew Ross Sorkin suggested that China should bail out the American aircraft manufacturer Boeing.
My jaw hit the floor.
The Leftist business media, which includes Bloomberg where we reported yesterday was pushing the ‘China is better’ narrative, is literally not looking out for American national security. One wonders how they have been incentivized and whose side they are on in this global grudge match economic struggle between Washington and Beijing.
No CNBC, China should not bailout, and therefore own, Boeing.
The massive aircraft manufacturing and defense contractor is said to be lobbying the Federal government for up to $60B in emergency funding for the aviation sector.
As of writing this article Boeing stock looks to be opening with a $100 handle on major exchanges.
With most major airlines seeing a catastrophic drawdown in traffic, analysts are expecting large order cancellations or delays for the Seattle-based company.
Many analysts have questioned Boeing’s use of borrowed cash to buy back stock to pump up its equity price in recent years, now leaving the firm with limited liquidity.
In our opinion, this leadership question can be dealt with down the road. There have been many bad decisions over the last few decades which have left American business, and therefore American citizens, vulnerable to Asian supply chains; these have to be reversed over time.
In the short run, let’s save America’s biggest exporter. That is what the Federal government is for, as it outlines its only direct responsibility outlined in the Constitution — ‘provide for the common defense’.