(The company recently denied bankruptcy rumors by stating that bankruptcy was "certainly not our goal or preference," which is about as close as a corporation will ever come to saying "Of course we're going to declare bankruptcy, you idiots, why are you even bothering to ask?")
But the bankruptcy WILL come as a surprise to the millions of Americans who have repeatedly been exposed to one of the consensual hallucinations that bullish investors and pundits have been mouthing in recent months:
To wit: Corporate balance sheets are the strongest in history and companies are awash in cash.
It is true that companies have plenty of liquidity, which they didn't a few years ago.
But corporate balance sheets are in fact no "stronger" than the balance sheet of someone who borrows a million dollars and then spends only little of it.
In otherRead More »from Wait, How Can American Airlines Go Bankrupt When ‘Corporate Balance Sheets Are The Strongest In History’?