Everyone is seeking money and Trump is willing to dish it out to the tune of an $850 Billion Stimulus Package.
U.S. Treasury Secretary Steven Mnuchin is pitching Senate Republicans on a roughly $850 billion economic stimulus package, according to two people familiar with the matter, as the Trump administration works to craft more legislation to cushion the economic blow of the coronavirus pandemic.
Democrats have proposed their own $750 billion package for the third phase of the response, and other lawmakers have started floating a variety of measures, including giving $1,000 in cash to every American.
Bailouts
The Trump administration’s stimulus plan will include roughly $50 billion for the airline industry, according to the people, as well as billions of dollars in general stimulus that could include a payroll tax cut.
The details remain in flux and even the top-line $850 billion figure could change, but Mr. Mnuchin is expected to discuss a number of options with Republicans, including a refundable tax credit to help people struggling with the economic effects of the outbreak and additional assistance for small businesses.
Boeing Wants a Bailout
One penny of bailout for Boeing is inexcusable…https://t.co/VFdy51P03P
— Dave Collum (@DavidBCollum) March 17, 2020
Airline Bailout
U.S. Airlines Spent 96% of Free Cash Flow on Buybacks https://t.co/SLLAie1UA6
— Diogenes (@WallStCynic) March 16, 2020
Note that airlines spent U.S. Airlines Spent 96% of Free Cash Flow on Buybacks.
Casinos Want a Bailout
F the casinos https://t.co/KEl4oO8MhH
— Mike “Mish” Shedlock (@MishGEA) March 17, 2020
I had a few choice words for that one.
Stock market Likes Bailouts
The stock market likes bailouts.
But let’s see what it thinks in a few days with an eye on Bear Market Support Levels.
Mike “Mish” Shedlock
Rally did not last long, Dow is set to open 900 points lower if it opened right now. And more bad news, the governor of Nevada just ordered ALL casino and “non essential” businesses to close for a month. Having moved here from Las Vegas last year I can already see what this will do to Las Vegas and it will not be pretty.
Las Vegas cannot possibly be made any uglier than it already is.
Really feeling it in the commodities markets. Never thought we would see $20 oil
That sounds like hush money to help the Mr. Dump reelection.
I’m fine with helping people living paycheck to paycheck. As for these corporations, if they need to they can file for BK protection and the investors and executives who profited from buybacks can learn how capitalism should work. For all the complaints about Sanders and socialism, America’s problem is that socialism currently only applies to the rich. Of course Sanders isn’t the answer, but socialism for the rich (investors and executives) also needs to stop. The planes, casinos, etc., won’t disappear in BK court, those assets will end up in the hands of someone who can manage them better. Actual capitalism would be nice for a change.
Yea!
So market is up because of more free money from the government? Because with so many businesses closed there isn’t going to be a lot of economic activity in the next 4-6 weeks.
One Simple Idea That Explains Why the Economy Is in Great Danger
What happens when a major section of machinery that is supposed to run perpetually suddenly grinds to a halt? We are about to find out.
Neil Irwin
March 17, 2020
P.S. Any idea when the like button is going to get fixed?
“So market is up because of more free money from the government?”
…
Yes.
Now we have to wait to see how long till Mr Market wants MOAR*.
*it will never be enough
Just how the actual hell are they going to give this cash out within two weeks? Sending a check to every address is not going to work, some houses have several adults sharing, some are not on government radar, some are too new to be in databases, some people like me are going to move by the end of the month and I can assure you there is almost no chance those checks will be forwarded. Thos brown-yellow treasury envelops all say DO NOT FORWARD. So what office do you appeal to when your check goes astray? I smell a monumental EPIC clusterfuck coming our way that only the US government could manage to create. I think if you get any kind of government direct deposit like I do from Veteran’s or from social security that is how they should do that, quicker, cheaper, more reliable. But, there is no single database in the government that has a list of every American and their absolute current address.
Ray, as to your post, people will of course come to realize that these measures do not overcome the virus, but they will help to overcome the panic and that is the phase we have to get through if we are to avoid the type of hospital overloading that Italy is experiencing. As for the cash bailouts, whatever, the powers that be know all that money will end up rather quickly in the hands of their crony capitalist buds within a matter of weeks anyway.
Oil price crashing by ANOTHER 6% today.
But hey, the DOW is up.
Down 2000 today. All gains since 1/20/17 erased. Thanks Obama!
Well…..I guess we can forget about ‘The Donald’ balancing the federal budget.
Works for me. There have to be bailouts, or this sucker’s goin down. Bail out the filthy poors. The rich will take it from them soon enough. Bonus: No food riots!
There’s never been a worse time for fiscal stimulus link to econlib.org
It takes some time because of procrastination, but eventually the trust in the reserve currency and its treasuries will be gone, because of endless shenanigans like these.
when do I get my 1,000 tax free check??
Check your mailbox.
Reminiscent of US Airways that re-purchased a ton of stock at $40/shr and within two years was in Chapter 11.
Same industry, Same mistakes, Same result – Chapter 11…..
Didn’t Buffett says airlines are like the wine business, you end up making a small fortune… after first investing a large fortune?
“…including giving $1,000 in cash to every American.”
George McGovern proposed that during his 1972 campaign against Nixon.
“including giving $1,000 in cash to every American.”
…
That might (help) keep bills at bay for a month for average citizen. Then what??
MOAR.
It’s hard to evict ill people in the middle of a lockdown….
Just saying….
States may order utilities to not shut people off. They almost have to, if they expect people not to break quarantine.
Cell phone and internet bills are dicier.
As for health insurance, not sure how useful it is, when even the roads leading to the hospital are filled with dying people waiting for treatment….
Yang today on TV is calling for $1000/MONTH!
Then we all ask for $2,000.
Can anyone discern what other nefarious idea is behind this gutting of the economy and how is the elite going to benefit from this (I am naturally suspicious of the intentions behind any action by the Fed and the government)
The elites want the privileges the Fed stole for them, to carry over into whatever order is established on the other side of the reset.
As in, they want the government to pay for their airplanes, but without the government also taking possession like the one paying would have in a free market.
And ditto they want all the productive assets owned by companies they own shares in, to remain with those companies, and their shares remaining with them, even if government ends up paying the bills due on both.
That way, the usual patsies of productive and working people will have to be shaken down to foot the bill. While the idle leeches on Fed welfare, get to enjoy whatever spoils there is.
Just like in the good old days, before the virus.
Also, how long can you keep sending cheques to individuals and companies (forget they do not deserve it)? What a loony idea!
A “Payroll Tax Cut” for people who will soon be unemployed and completely broke.
Hoooray!
This is where “faith” in government finally reaches a level of ZERO (or less).
Does a payroll tax cut help those out of a job?
Noone in the article’s leading picture fits that description. And those guys are tone ones deciding who “needs” help.
Not one bit.
I was being sarcastic.
If you close down everything depression is inevitable. Rest is noise!
Bear market support levels will be going going gone in such a case.
Depression is inevitable, once people realize this news that broke today (3/17/20)
In a week or two people are going to want hospital beds and not a check.
I just came home with ten handles of whiskey. I’m going to stimulate myself. Jim Beam me up Scotty.
Went to the grocery store this morning. Last week when there everything normal. I looked around and asked the guy I knew who worked there “when did the bomb go off?” Said it started Thursday and hadn’t let up. Whole shelves stripped clean.
Same. Getting scary. I stocked up past couple months. I think we’ll be able to get stuff once the initial raid is done. Problem is getting there, the lines and limits. I wanted to avoid the hassle. I raided the liquor store past couple days thinking once the bars etc close they’ll get wiped out.
Boeing???? What happened to all the capitalist in the Republican Party. Boeing brought this on all by themselves. Cut corners and got caught. And these are the same people who will say we should not give bailouts to individuals because it will discourage them from working. Business bailouts encourage bad behavior. If one business gets a bailout, then we better be willing to help every individual who is now unemployed – bartenders, wait staff, cooks, retail store workers. All the hourly and contract workers. But alas, I forgot we are only capitalist when we try to put in place regulations that might control some bad behaviors.
The notion Republicans are more conservative, bla, bla, bla is so much nonsense. Doesn’t matter who’s in charge, deficit always go up. I think I am more of a centrist, but I bet you, I possess more conservatism compared to most Republicans.
You know what people who have power and money want? More power and money. Does not matter whether they are Democrats or Republicans.
Man this country is so doomed, and I am enjoying it.
“What happened to all the capitalist in the Republican Party”
He retired, after being beaten the second time in a row by the self dealing collectivist faction.
And now that I have your ear, and that includes you too my friends@Stuki @tokidoki , please go here and opine on my question, thank you:
Re: “If one business gets a bailout, then we better be willing to help every individual who is now unemployed – bartenders, wait staff, cooks, retail store workers. All the hourly and contract workers.”
I’m not saying that I favor bailouts for anyone, but I would have to think that you realize that “bailouts” for the people you mention are already in existence. How quickly we forget the safety net that is already there, including unemployment, food stamps, medicaid, and many more.
When I lay off all my employees, which I haven’t yet, but will no doubt have to, they will all go file for unemployment. And, who will pay for that? Me, obviously. I have a very large reserve from a long history of never laying off employees, so I pay very little unemployment tax. This will eat my entire reserve very quickly if this lasts very long, and then some, and next year, and for at least five years after, I will pay a much higher tax to make up all the money that was paid to my employees while we can’t work. Meanwhile, I will still have to pay utilities, rent, insurance, and other expenses. So, I’ll take it in the shorts in the short run paying expenses with no revenue, and then in the longer run, I’ll pay again, paying “makeup” unemployment tax to repay everything my employees collected in the short run.