Category Archives: bailout

Two Trillion Dollar Stimulus Brings Back Bull, For Now

stimulus, 2 trillion, bull market,
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The Senate passed a two trillion dollar stimulus bill Wednesday night. And the Dow lurched forward 6.4% on Thursday. And that followed an 11% bump from the day before. But the 401k party was over by Friday and it was still down over 20% for the year.

Cure Worse than Disease?

cure, Covid-19 virus, economy
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Is the cure worse than the disease? The war against the Covid-19 virus is destroying businesses and jobs. The Wall Street Journal in an editorial titled Rethinking the Coronavirus Shutdown thinks maybe so:

In a normal recession the U.S. loses about 5% of national output over the course of a year or so. In this case we may lose that much, or twice as much, in a month.

Our friend Ed Hyman, the Wall Street economist, on Thursday adjusted his estimate for the second quarter to an annual rate loss in GDP of minus-20%. Treasury Secretary Steven Mnuchin’s assertion on Fox Business Thursday that the economy will power through all this is happy talk if this continues for much longer…

And David Katz, the founding director of the Yale- Griffin prevention research Center, wrote in the New York Times

I am deeply concerned that the social, economic and public health consequences of this near total meltdown of normal life — schools and businesses closed, gatherings banned — will be long lasting and calamitous, possibly graver than the direct toll of the virus itself.

…A pivot right now from trying to protect all people to focusing on the most vulnerable remains entirely plausible. With each passing day, however, it becomes more difficult. The path we are on may well lead to uncontained viral contagion and monumental collateral damage to our society and economy. A more surgical approach is what we need.

Feds Plan to Make Everyone Flush

feds,$1000, toilet paper
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The feds are trying to stimulate the economy out of the toilet. The plan so far is to make everyone flush with free money. Thousand dollar plus checks could be in the mail soon.

Trump Base Battle

Trump Base

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The economy  is booming but the Trump base is taking a hit.

GM is shutting down Chevy Cruze production at its 6 million square foot Lordstown plant. And Reason says the billion dollar cost of steel and other tariffs might have something to do with it. Steel workers are an important part of the Trump base. So are autoworkers and 1400 of them are about to lose their jobs.

Trump Base

“The U.S. saved General Motors, and this is the THANKS we get!,” tweets Trump.

Kevin Williamson at NR says it was dumb to bail out GM in the first place. American carmakers can’t compete on sedans with the likes of Honda or Audi. But they’re good at making trucks and SUVs people like. They should have focused on that sector long ago, he says. But we “paid them not to.”

Electric cars too. NPR reports the government subsidies electric cars to the tune of a $7,500 tax credit for buyers.

So now GM will focus on what it’s good at. In Mexico.

Bill O’Reilly Sexual Harassment Retirement Party

Bill O'Reilly

Bill O’Reilly joined Roger Ailes in enforced retirement on Wednesday. Both were accused of sexual harassment.

Not to worry though. CNN Money says O’Reilly’s golden parachute falls just a little south of the $25 million contract he recently signed. That compares to his former boss’s $40 million bail out.

Bill O’Reilly Sexual Harassment Charges Lift All Boats

Also, there’s a trickle down payout effect. The NYT says O’Reilly and Fox paid about $13 million to various women who accused him of sexual harassment. He admits nothing.

Still, Fox gave him the boot.