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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) Más...Sort type: [Top] [Newest]
how come GE capital isn't providing the money? With the stimulus and paying no taxes they should be cash rich.
As every person knows, the 787 has of a lot of components made in Korea, Italy, Japan and many other countries, to the tune of I would venture 40% ot is final cost maybe more so these foreing materials should NOT be financed by the U.S. Eximbank but since Boeing has a lot of sway in the decisions of than lending agench (translation: polital strings) I would not be surprised that they were able to get "waivers" so the entire selling price is financed by the U.S. Government. And the beat goes on, as the song says.
If airplanes don't depreciate, why do you see used ones offered for sale at a fraction of what they cost new? It may be true that new models don't depreciate as rapidly as equipment in other industries, especially when there is great demand.The concept of supply and demand determines the selling price of planes, just as it does most things.When the economy takes a dive, and planes are parked you can be assured they are not selling for what they cost new.,
These are collateralized loans and unlike automobiles and television sets, passenger aircraft and aircraft engines don't depreciate. Some appreciate substantially. If a financed sale to Air India is subject to a default, the Ex-Im bank takes back the plane and resells it to Air-Bengazi, often at a substantial profit. Face it, the world of commercial aviation can't function without a credit bank and if we don't offer it, France will and soon you will see Airbus Industries selling to every carrier and Boeing will be sucking wind.
Export Import bank is just a crony capitalist tool that sucks the life blood out of the Taxpayer. You want the Taxpayer to fund your business? F U!
Take your attitude to another blog. As a aviator and a person I don't care for your tone. Civil conversation and disagreement is fine and accepted but not the way you put it here. Others may agree with you but they show more respect. so flake off.
This is just setting us up for the largest collapse of our economy ever. this is just borrowing more money to prop boeing and ge sales to keep them from the same effects as the car industry. it sure possesses the lack of oversight to a degree of almost unlimited money so i can see how the trillions to even maybe quadrillions of dollars have been spent on this over the years.