Posted on 03/21/2020 8:19:32 AM PDT by yesthatjallen
Larry Kudlow, the director of the National Economic Council, said on Saturday that negotiators are doubling the size of a forthcoming coronavirus stimulus package as they try clinch an agreement.
Kudlow said the size of the package would be approximately 10 percent of the county's gross domestic product (GDP), calling it a "very large package."
When a reporter noted that 10 percent would be more than $2 trillion, he added: "That's correct."
The decision is a significant uptick from the $1 trillion request initially submitted by the administration. Lawmakers are under significant pressure to quickly pass massive legislation to try to reassure the markets and offer assistance to workers, small businesses and industries that have been impacted the spread of the coronavirus.
Kudlow did not indicate what had been added to the stimulus package to double the size of the legislation, but he did note that small businesses would be getting a payroll tax holiday under the bill.
SNIP
(Excerpt) Read more at thehill.com ...
I nearly passed out when I heard ONE trillion...
Fiat currency printed our of thin air.
This is drop in the bucket.
Business must be restarted and restarted now. If not we will have the perfect storm for an economic death spiral akin to the 1930’s.
I think he meant to say more than $22T.
Or was it $222T?
Holy merde.
We’re burning the village to save it.
I hope the stimulus includes printing presses. Because we’re going to need a WHOLE lot of them.
Yep.
Looks like the Bernie bro’s are going to have an even bigger tax debt than they ever dreamed.
Trump has now exceeded Obama’s debt spending year for year.
By virtue of increasing government spending, and I am saying this without regard to its worthiness or not, GDP numbers will be held in check and will look better than they actually are. We'll still have negative GDP for a quarter or two, and perhaps by the end of the year it could show a meager positive gain. However, understand GDP is calculated using government spending.
In a time like this where economic activity shuts down across multiple sectors, the SUPPLY of money is less important than the VELOCITY of money as it circulates through the economy.
The "kick-start" has to be done in a way that existing financial obligations of people and businesses are satisfied. That's what the bailout of the airline industry is all about, for example. Nobody is looking to bail out the airline industry because they expect millions of Americans to start flying to Disney World next week. This bailout is aimed at ensuring that Delta Airlines can pay Boeing for the new aircraft Boeing is building right now ... so Boeing can pay its suppliers ... so the suppliers can pay for the raw materials ... so the people producing the raw materials can buy iPhones and groceries, etc.
Even if they do succeed in grabbing a trillion dollars two trillion dollars of others’ money, what are they going to do next time?
The Flugaloo has begun.
[The “kick-start” has to be done in a way that existing financial obligations of people and businesses are satisfied. That’s what the bailout of the airline industry is all about, for example. Nobody is looking to bail out the airline industry because they expect millions of Americans to start flying to Disney World next week. This bailout is aimed at ensuring that Delta Airlines can pay Boeing for the new aircraft Boeing is building right now ... so Boeing can pay its suppliers ... so the suppliers can pay for the raw materials ... so the people producing the raw materials can buy iPhones and groceries, etc. ]
STOP THE MADNESS!! OPEN THE US UP AGAIN.. NOW!
We are cutting of both legs for a CORN!
No more stock buybacks for airlines. Any company that is “too big to fail” must have restrictions.
The Democrats won’t pass anything that doesn’t bailout their s**thole cities that are sinking. McConnell should pull the plug on this bloated bill, and the Senate should go home. They should blame the Democrats for their perennial Christas tree budgets, even in this economic crisis, and they should NOT cave.
If you can finance it now while interest rates are near zero, that helps.
To the extent monetary policy is used, that is usually reversible.
Most loans get paid off. They did during Tarp. If equity is taken, that equity can be sold later maybe for a profit, maybe for a loss, but better than nothing.
To the extent direct payments go to people who worked most of the year, you get a portion of those back through income taxes.
If fiscal stimulus goes to infrastructure projects such as roads and airports, those provide benefits down the road.
If stimulus goes to increasing government bureaucracy or wasted on bundlers ala Obama, then that’s just wasted money, that eventually has to be recovered from Taxpayers who got nothing out of it.
In some cases this might keep people from using other government safety net programs.
The problem is 2008 is that that crash was caused by problems in the financial foundation. The banks were overextended and the real estate crashed and mortgage insurance companies were collapsing. The stimulus then was designed to repair the foundation.
In this situation, the foundation isn’t the problem right now. It’s the uncertainty of the duration of this crisis. Is it 2 weeks? A month? 2 years? No one seems to know. And that is why nothing is working. Nothing is repairing the problem. Every move the Fed Reserve makes causes the market to crash because its interpreted as panic.
This economic panic won’t end until we know when these lockdowns will stop. It doesn’t matter how many trillions we pump in. The economy wants to know the endgame. That is the ONLY news the economy will respond positively to.
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