The growth in new covid cases worldwide has slowed, but United States isn’t out of the woods, far from it. The shutdowns have left tens of millions flat on the canvas, without jobs.
The republicans propose $1 trillion in aid. The democrats are feeling more generous; $3.5 trillion. In the goodie bag already includes either a $600 helicopter payment to all citizens earning less than $40,000 per year or a means-tested $600 payroll tax cut, as well as more in the Payment Protection Program (PPP), money for testing, and support to schools.
The devil is in the details, though. President Trump wants payroll tax cut while almost everyone else thinks direct cash distributions will be most effective.
Yesterday, White House insiders met with Republican senators for the Senate Republican lunch. In basic terms, these politicians all wear the same color, but politics is “a messy business,” said one lawmaker and at least one senator “stormed out” in a fit of rage.
The Reps, ultimately, want that bill now. The Dems claim an agreement won’t come next week. It will have to come soon because lawmakers troop off on exotic summer breaks in a few weeks (in the middle of a crisis, never mind), and momentum will be lost.
It’s true that with each percent the stock market rises, the chances fade of more stimulus to help real people struggling in the real economy. The government doesn’t want to inflate asset prices, but the market has already priced in more stimulus as states re-quarantine.
This is going to be interesting!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
Originally published by Chris Morrissey at https://invstr.com on July 22, 2020.