Data show lots of ‘Covid relief’ stimulus checks went directly into financial markets, not spent on necessities. Thanks, Suckers!

American Thinker ^ | 03/20/2021 | Thomas Lifson

[SeekAndFind]

While there are plenty of people whose lives have been thrown into chaos by the lockdowns imposed on us in the name of protecting against Covid, the “free money” sent out without a single Republic vote in Congress went to a lot of people who didn’t really need it.  The checks amount to Democrats buying votes, so why should they limit the purchase to the truly needy?

A report from Goldman Sachs, which watches financial flows closely, stated (via MarketWatch):

“These payments may be making their way into mutual funds and ETFs, as well as other assets,” the Goldman analysts wrote. “All industry categories saw positive net inflows on the week; the largest net purchases as a share of [asssets (sic) under management] were of industrials and telecom.

And in fact, the flows into the financial markets took a huge jump after the checks were mailed out:

(source)

Goldman estimated:

…that net flows into global equity funds hit a nominal record of $68 billion in the week ended March 17, which when scaled to the level of mutual-fund equity assets was the largest since December 2014.

The total amount of stimulus checks distributed by 3/17 was $242 billion, according to Market Watch, so over a quarter (28%) of that amount flowed into financial investments. Of course, there probably were other funds flowing into the markets anyway, but the graph above shows that less than $20 billion had flowed in the week before. So, Goldman Sachs’s supposition is probably correct, that a substantial percentage of checks sent out were invested by those lucky enough to receive them.

[lightman]

At least 10% of my household’s is going or will shortly go into various charities.

‘Tis the season of Lent when almsgiving is especially encouraged.

[proxy_user]

And if you spend them on necessities, guess what? Those who receive your money, they put them into the financial markets. That’s where all the money goes.

[lightman]

Ping to post # 2.

[Josa]

There is no charity that hasn’t succumbed to woke-ism

[lightman]

The Salvation Army?

[ConservativeInPA]

Guess, what. All of my stimulus checks went into my trading account. I have no need to buy more stuff that I don’t need, especially junk from China.

[GreyHoundSailor]

Mine went to precious metals - 4150 steel and 416R stainless.

[Diana in Wisconsin]

Thanks for the reminder. My blood money from ‘Uncle Sugar’ was deposited on March 17th.

It’s just going to sit in savings.

[babble-on]

Oh no, people are saving money!

Also, don’t forget the $86 billion going to Union pension plans, that will go straight into the markets, minus a cut for the union thugs.

And the state and local bailout money also is likely to shore up a lot of pension plans on the public sector side.

[wastedyears]

[LegendHasIt]

Sorry, I don’t believe it.

Sure a lot of FReepers and others like them might have done that, the ones who didn’t invest in ammo, But I bet most of it went into Nike gear, Game machines, food and liquor.

[upchuck]

I donate generously to various charities every month. I have no debt. I’m retired and live alone.

Given all that, I took the $1400 from Uncle Sam, added my state and federal income returns to it and invested the whole shottin’ mess in the market. Seemed the logical thing to do.

[Lurkinanloomin]

Lots of it is going for guns.
259 background checks today.

[DugwayDuke]

We’re using ours to buy two standard poodles. We’re naming them ‘Biden’ and ‘Harris’.

[blueplum]

Extending condolences in advance for your upcoming boating accident :)

[redgolum]

A bit more than 10%.

They need it more than me.

[whistleduck]

I invested previously in precious lead and lead dispensers.

[Lurkinanloomin]

Good thing, ammo is very hard to come by these days.

[Clemenza]

All of you fools who supporter “Trump Bucks” in the amount of $2K, but now oppose “Biden Bucks” please raise your hand for hypocrisy. ;)