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Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 4:45 pm
by _Icarus
Tell me if you've seen this movie before.
The economy teeters on the brink of collapse, the government comes to save the day with cash infusions. Except this time we're talking about a economic stall, not an entire collapse which is what nearly happened in 2009.
Who is in favor of this?
Why aren't we seeing the kinds of disdain we saw from Republicans back in 2009? You know, back when it was "Socialism."
Overall, I'm not sure this is such a great idea. This recession is different from what happened in 2008. Today the economy is still strong. There is no housing crisis, financial institutions aren't having problems making money or lending out money. Consumer spending is stable. The only industries hit by the corona affair are likely to recover nicely once its over which could be a matter of weeks or a few months.
The slashing of interest rates to 0% when they were already close to zero was just the fed showing how it has no independence from Trump's will. This move isn't going to do anything except maybe provide a temporary bump in the stock market which seems to be Trump's only concern leading up to election day.
The announcement of the $850 billion stimulus resulted in a market bump of 1200 points that lasted only a couple hours.
Seems like Trump's power to manipulate the market at will has faded as more investors realize the game he plays.
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:03 pm
by _EAllusion
It’s not a liquidity crisis (yet) but whole sectors of the economy employing millions of people are shutting down while the global supply chain is falling apart. It’s about as serious as it gets.
The optimists on this front seem awfully rosey in their projections of when activity can ramp up again without risking mass death.
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:10 pm
by _EAllusion
Are restaurants going to recover? That’s a famously difficult industry with tight margins. How long can they shut down and survive? When they open back up, it’s not like people are going to order a x month backlog of food.
If they’re not bailed out in some way, it seems like they’re getting smashed against the rocks as an industry. (And they are being legally required to shut down in many cases.)
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:17 pm
by _Icarus
EAllusion wrote:Are restaurants going to recover? That’s a famously difficult industry with tight margins. How long can they shut down and survive? When they open back up, it’s not like people are going to order a x month backlog of food.
If they’re not bailed out in some way, it seems like they’re getting smashed against the rocks as an industry. (And they are being legally required to shut down in many cases.)
Restaurants typically order enough food to last a few weeks, or at least they did back in the day when I managed an Olive Garden. Here locally people have been spreading the idea of buying gift cards from local restaurants to use at a later time.
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:23 pm
by _Icarus
Trump wants start send checks directly to Americans. Nothing says corruption quite like buying votes before an election.
https://abcnews.go.com/Politics/governm ... es_bsq_hed
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:28 pm
by _EAllusion
Icarus wrote:EAllusion wrote:Are restaurants going to recover? That’s a famously difficult industry with tight margins. How long can they shut down and survive? When they open back up, it’s not like people are going to order a x month backlog of food.
If they’re not bailed out in some way, it seems like they’re getting smashed against the rocks as an industry. (And they are being legally required to shut down in many cases.)
Restaurants typically order enough food to last a few weeks, or at least they did back in the day when I managed an Olive Garden. Here locally people have been spreading the idea of buying gift cards from local restaurants to use at a later time.
They have to pay rent and themselves somehow.
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:31 pm
by _subgenius
compare/contrast with current Democrat strategy of buying votes on credit (vote for me today and get free stuff tomorrow)
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:34 pm
by _EAllusion
Seems like a good idea, and the Democratic leadership are failures for getting politically outflanked like this while they try to compromise down on their wholly inadequate relief bill. It’s not Trump’s fault that Nancy Pelosi knows how to pass bills but is terrified of using political leverage.
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:44 pm
by _Icarus
subgenius wrote:compare/contrast with current Democrat strategy of buying votes on credit (vote for me today and get free stuff tomorrow)
Expecting your own tax dollars to pay for necessities like health care and education as it exists in every other major country isn't even the same thing as expecting tax dollars to be used to bail out certain citizens because they chose the wrong career path. If the tables were turned and Obama were President we already know how you'd be reacting and we know the hysteria at FOX News would be about opposing this kind of Socialism because "this is America Goddammit! People need to pull themselves up by their bootstraps like we've been telling minorities to do for themselves."
Re: Government to the Rescue.... Again
Posted: Tue Mar 17, 2020 5:49 pm
by _Icarus
It just seems clear to me that Trump is panicking because he can't manipulate the market anymore as investors have caught on to his game. And so he is now throwing everything and the kitchen sink at a problem in order to get reelected. I haven't started looking up Trump's remarks bout the stimulus of 2009, but it wouldn't surprise me if he were against it.