Buried in the stories about the collapse of Yellow Trucking is an even bigger, but unfortunately commonplace story, about how taxpayers poured billions into an organization and received a 100% loss for their efforts.
If you are a taxpayer, you know all this, your government being a 29.6 percent shareholder of Yellow and all. The Trump administration’s Coronavirus, Aid, Relief, and Economic Security (CARES) Act dished out $500 billion to businesses, states and municipalities as a result of the coronavirus. Yellow Corporation received $700 million of the $735.9 million set aside for national security loans.
Once the loan was funded, Yellow executive officers and directors received stock options and Yellow stock went up ten times in price from the bailout to the end of 2021.
Yeah, isn’t that how it always goes? There’s a lot of blame to go around I guess, but having Teamster leader O’Brien pose in front of a “Yellow” gravestone complete with a 2023 death date and putting “SOB” as his Twitter handle and other childishness just doesn’t do it for me.
So who suffers in the end? 30,000 people whose pensions are now at risk.
I see a lot of them are venting their anger at O’Brien…good.
Mises should be better at math… the Stock price was $1.85 on June 30th, 2020 (the day before the loan was announced) and peaked at $14.64 on December 8th 2021, before dropping to $12.59 on December 31st.
Also not mentioned is how much those stock options were worth when given out, versus how much of them were exercised, and then sold before the bankruptcy.
Also not answered is, of course, why didn’t the government sell off it’s ownership stake when the price was appreciating in December of 2021?
So, government is short sighted and wasteful? It’s only that way because they are allowed to get away with it.
I recently saw a video on YouTube of some kid excitedly exclaiming how the City of Philadelphia had a program to plant trees on city streets for free. I watched it out of curiosity then commented. I pointed out in the comments that the video, alone, showed over six city employees and two subcontractors being applied to the planting of a single dwarf flowering tree. I stated that, in all likelihood, that was only a fraction of the full manpower and government resources applied. I then made it clear that planting a dwarf tree takes about 15 minutes, a shovel, a bucket of water, and a few muscles.
I was absolutely lambasted in the comments for everything from climate denier to troll. This merely confirms my theory that over half the world’s population is functionally retarded.
I believe they received bailouts in 2009 as well
“Teamsters president Jimmy Hoffa allegedly “had reached out to the Trump administration and . . .”
Huh???
Wow, reaching out from the grave…wherever that is.
Is Mises a Babylon Bee affiliate?
His son.
Regan was right.
Government sure knows how to pick “winners” .
Naturally they know these are “winners” because they behave just like the Master Class (The Bureau) who also know themselves to be “smarter than everyone else”.
Even after they confess that “Math is hard”.
So hard that only a minimum wage cashier can do it.
Budgets will balance themselves…
I see reference to Jimmy Hoffa in the union affairs,what the?
He’s back?
I see the writer of this article had to emphasize Trump’s name on the $500M CARES Act … smearing the BEST POTUS ever with the utter WASTE of government (taxpayer) dollars. Here’s a helpful reminder … Trump didn’t SHUT DOWN the economy. The States did that. Trump didn’t manufacture a novel virus … Fauxci and the Communist Chinese did that. The Trump Admin. had no choice but to rescue the American people from complete loss of income and starvation. But Trump didn’t write a garbage Act that allowed massive FRAUD … bureaucrats did that.
And if the $500M CARES Act was a shit sandwich … what about the “Infrastructure Act” and the “Inflation Reduction Act” passed by Biden and a feckless Mitch McConnell? How much $$WASTE$$ in those Acts? $6 Trillion!? For what? To “save the planet from global warming”?
What a pile of crap aimed at smearing Trump.
On the bright side. At least the money stayed at home and wasn’t sent to Zelensky and friends.