Airlines, particularly low cost airlines are failing with amazing speed. Aloha, ATA, Oasis and a couple others I won't look up just now.
There will be more.
What stirs me about this is two things:
1. The lack of the airlines ability to contend with high fuel prices and counter that with equivalent fare increases. I can't believe that the elasticity of demand is so great. People have to fly and I would have thought that it were far more inelastic than all that.
2. The scrubbing of an economy by downturns and economic difficulty. I have lived thru a few of these. Some were far worse than this. The net result was that on the other side more durable businesses survived. We have not seen the end of this. Some of this is actually good for the economy. When it begins again the foolishness in the marketplace will be far less.
I'm convinced and concerned that government stay out of this. They seem to have a penchant to get involved in a natural cycle that is critical to new growth.
This is true in a spiritual sense as well. Jesus said, "I can guarantee this truth: A single grain of wheat doesn't produce anything unless it is planted in the ground and dies. If it dies, it will produce a lot of grain". These business failures, job losses, bankruptcies, foreclosures, contractions and currency devaluations are all important, yea, essential to regain the fruitfulness of our economy.
This will be over soon anyway. A year from now this will look very very different.
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