- Silver Report Uncut
The worlds second-largest movie theatre chain has just announced plans to suspend their US operations due to plummeting demand. The funny thing is it wasn’t that long ago they were suggesting movie theatres were the best place to invest ahead of the V-shaped recovery and huge resurgence of pent up demand… Well in real life it came out as a whimper and it’s gone already as less people are willing to go out to the movies these days. Renters have begun missing rent payments in the top metro’s across the US and Las Vegas takes the cake as renters have stopped paying their rents in droves. We have covered several times the breakdown underway in the Vegas tourism-driven economy and casino revenues have also plunged back to a whimper. American Airlines and United Airlines have already received a ton of money from various bailout packages and whats interesting is as we pull back these layers we see both airlines have received more from bailout funds than their actual losses over the period. This is a big problem because the major airlines just announced over 32,000 job cuts and have already pushed over 50,000 employees out of the industry utilizing various voluntary buy-outs and early retirement programs. So the question we’re left with is if the airlines have profited from the bailout why have they cut so many jobs? how much profit is enough?