Boeing, Bernie, Stock Market Porn...and Neil Young! | Opinion

Welcome to "On the Street," my first column for Newsweek.com. Every Monday, I'll give you my take on major stories in the world of business and economics—and politics where it intersects with both. To save you a slog through LinkedIn, a little about me: I'm editorial director of Newsweek. Previously, I have worked in jobs ranging from a reporter and columnist for the Wall Street Journal and the Boston Globe, respectively, to deputy editor at Fortune magazine. I'm also the author of You Can't Fire Everyone, a management memoir. (As it turns out, you can, I guess.) So let's get started. Lots of pandemic-related bailout stuff, obviously:

Beware Market Porn

The S&P 500 stock index closed up for the week last Friday—just north of 10 percent—mostly on the news of the bailout, Fed moves and who-knows-what-else. For most of us, that shouldn't be a signal to get back in the stock pool or out for that matter. But if you have been reading the various financial sites, there have been a slew of articles encouraging investors to start investing again. Or prodding them to do it. For readers, pure stock porn. You know, here's what Warren Buffett may or may not be doing or saying. Or Goldman Sachs just loves Boeing. Or Bill Miller says the coronavirus bear market is one of the best buying opportunities ever. But you're not Miller, and you're not Buffett, and you have no idea whether the bailout is going to get the economy going again and when. There's a lot of irresponsible rubbish out there, in the guise of advice. But if you're a normal investor—as most of us are—spend some time with Newsweek's Diane Harris on managing the ups and downs of the insane equity markets. My favorite point: market timing is for dummies. Amen, Harris.

Can You Believe Boeing's Chutzpah?

So let me get this straight. Management almost drove the company into the ground when a software flaw was discovered in its spanking new 737 Max planes, resulting in the crash of two jetliners—and causing endless woes for customers like American and Southwest after the whole fleet was grounded for more than a year. If that wasn't enough, the board of directors thought it was a great idea to go ahead with the company's first quarter dividend. After all, there's nothing better than rewarding shareholders just after you've screwed up the company. As the Washington Post's Allan Sloan wrote in his recent column, "If you want to see an act of utter cluelessness given what's going on in our country, look at how Boeing sent more than $1 billion of dividend checks to its shareholders three weeks ago, as the coronavirus crisis and corporate stimulus requests were both metastasizing." The grand finale was brought to you by Boeing CEO Dave Calhoun. Last week, on Fox, he said he wasn't willing to give company stock in exchange for a taxpayer bailout. Calhoun added: "If they forced it, we'd just look at all the other options and we have got plenty." Go ahead, then, Boeing, handle it on your own. You're so good at everything else.

Bernie's Revenge

As my friend and Newsweek colleague Sam Hill says, "If the U.S. wasn't a socialist country before, it is now." Not saying bailout-mania isn't justified, given the circumstances. But, please, enough of those Ayn Rand lectures for a while. The fact is, we're going to rescue big companies now, along with the expansion of the social safety net. Then there's the government-directed industrial policy (ventilators and protective gear for the hospital responders, hopefully) and suspension of civil liberties, like the right to party on Florida beaches. Adds Sam: "The free market is all fun and games until someone loses their bonus. Where are all the free marketers now?" Well, queuing-up for bailouts, even before they need them. For companies like Boeing, whose problems are of their own making, this is "manna from heaven." Welcome to America, comrade!

Loose Change

Some of the best financial advice I've seen in the pandemic (besides Newsweek's Harris)? "Anything you can do without," planner Tom Murphy told the Dallas Morning News, "Do without" A lot of folks are unemployed now, including touring musicians. And if you can't tour, what can you do? Concerts in your home. A couple of my favorites: Neil Young, with his wife, Daryl Hannah, handling camera chores, is featured in the "Fireside Sessions" from his place in Colorado. Nashville singer-songwriter-hitmakers Gary Burr and Georgia Middleman are in concert, too, from their home on April 1. Only five bucks. Also check out NPR's "Tiny Desk Concerts," recorded at home.

And, finally, the tweet of the week—or was it last week?—comes from comedian Chelsea Handler: "I'm officially attracted to Andrew Cuomo. Can we just let him take over for the country? Wouldn't that be bipartisan?" See you next week, and don't forget to donate to your local hospitals when they ask.

Hank Gilman is Newsweek's editorial director.

The views expressed in this article are the writer's own.