There have been warning signs even before the coronavirus that corporate debt was at unsustainable levels, and cruise lines were already aware that publicity related to viruses on ships could significantly decrease demand. Carnival and its investors knew they were taking risks in order to boost their returns. They should have to pay for that risk-taking behavior, even in the face of a black-swan event. And if Carnival is too big to fail, then surely so is Hilton, and any other big tourism company.
What message would it send to Americans being furloughed from their jobs to see the government issuing interest-free loans to ensure that 180,000-ton pleasure palaces stay afloat? Before Congress rushes to save any corporation that comes begging, it should consider if it’s right to bail out companies while Americans will be still expected to pay their mortgages, car loans, and credit-card debt. It’s looking increasingly likely that Americans may get a check in the mail, but that’s hardly the same as a loan to cover all their debts. Why should corporations get different treatment?
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