Thursday, April 9, 2009

Business Week: "global economy's sharp contraction"

from Boeing Cuts Outlook, 777 Output

It seems that Seattle may have just heard the economic alarm that Boeing's (BA) largest customer warned about last month. As many expected, the global economy's sharp contraction is beginning to buffet Boeing, which makes its commercial planes in the Seattle area.
Just last month, at an airline industry conference in Phoenix, Steven Udvar-Házy, the CEO of Boeing's biggest customer, International Lease Finance Corp., noted that "when a bomb explodes, the light flash travels a lot faster than the sound. The flash occurred in September, but the sound hasn't reached Seattle and Toulouse yet." (The headquarters of Boeing rival Airbus (EAD.PA) are in Toulouse, France.) It seems as if now it has.

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The referenced "explosion" was actually the beginning of the "bailout" which began sucking trillions of dollars out of the economy, in an attempt to prop up the bankers' gambling-debt bubble which was collapsing because they couldn't suck value from the economy fast enough without resorting to fascist measures.