Category Archives: banking

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.

Not Just First Woman of Color Anymore

elizabeth warren, school teacher, first woman of color, pocahontas

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Before she was the first woman of color at Harvard Law School, Elizabeth Warren was a school teacher. But then she got pregnant and the principal “showed her the door.”  At least that’s how she tells it. But that’s not what happened. She quit. Her contract was extended that spring but Elizabeth decided to go another way. And the board accepted her resignation with regret.

Much More Than First Woman of Color

She went back to school, earned a law degree, became a bankruptcy expert, helped found the Consumer Financial Protection Bureau and went on to regulate big banks.

Manafort’s Money

Manafort's Money

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President Trump’s former campaign manager Paul Manafort was convicted on eight charges of bank and tax fraud. The judge ruled a mistrial on 10 other charges. The conviction isn’t related to Robert Mueller’s collusion investigation.

But maybe it was related to Manafort’s taste for the the finer things in life. He once spent $15,000 on an ostrich jacket. Not that there’s anything wrong with that. Except that he lied to banks for loans and didn’t pay taxes on $16 million.

Vox follows Manafort’s money here.