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Republicans In Congress Out To Lunch On Ex-Im Bank Funding
Ex-Im supports a broad spectrum of industries, but is especially important to Boeing–so much so that Ex-Im is sometimes derisively called Boeing’s Bank due to the dominance of Boeing airplanes funded by Ex-Im. Ex-Im reaches its $100bn cap this month, according to The Hill, much earlier than the previously anticipated May. Boeing and GE–which supplies engines for 92% of Boeing’s airplanes–are lobbying Congress to increase the cap to $140bn. This might sound like lunacy in the budget crisis, but… (leehamnews.wordpress.com) Mehr...Sort type: [Top] [Newest]
Personally, I think we should increase the cap. However, those who don't, aren't 'wrong' or 'out to lunch'. The reason EX IM generates fees is risk. The Bank, on behalf of the American tax payer, charges fees for the risk the tax payer assumes in supporting these deals. This structure is very similar to the Department of Energy's guarantee program which allowed the Solyndra debacle to occur. Ex-Im bankers have been doing this for a long time, though, and know how to do deals. DOE staffers were lambs in a financial field of wolves….certainly not ready for prime time. That said, Members who question the Bank are right to do so. Given proper oversight, this is an enterprise which should be allowed to continue. What’s the old saying? As true today as it was in the post war economy…”What’s good for American business is good for America”.
I am not very educated on this deal, but I'm sure it started out with good intentions. I think you hit the nail on the head about proper oversight. I don't think there is such a thing anymore. The overseers are all double agents. Might I bring up Freddie and Fannie?
For the kind of $ involved here, there has got to be a good financing souce as these deals will far outdo your corner bank, BUT, oversight is the key word. Big Question, Why does the cap need raising sooner than anticipated?
Bet it's because too many of the worlds airlines are expanding too big, too fast. We know what comes next.
You probably right.
Can you say Boeing 380? The international players have to have them if they are going to compete and save $$ on fuel.
Airplanes don't depreciate? So when one airline goes broke and another airline buys them, they pay as much for the planes as the original purchase price? If it such a great bulletproof deal, why do the taxpayers even need to be on the hook? Looks like the investment community worldwide would be all over it.
Boeing 380????
Guess there was a merger we didn't know about.