Monday, April 14, 2008
American Airline's problem is reminiscent of the subprime mortgage meltdown. Reacting to criticism that too many people were being denied mortgages, the industry skewed risk into the ditch and overloaned. American is being forced to oversteer by an FAA reacting to criticism that it mollycoddles the industry. Compassionate conservatism means screwing the pooch when you know better, and being bitten in return.