Category Archives: Stimulus

Blue State Pre-existing Condition

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Blue states have a pre-existing condition that makes them more vulnerable to the Corona virus lockdown. And Nancy Pelosi has a plan for that. But Mitch McConnell pronounced her $3 trillion bailout cure dead on arrival. Instead, he prescribed bankruptcy.

But the U.S. Constitution might pronounce that idea is dead on arrival too.

The plan could be raised from dead though. Bloomberg Businessweek says red states need bailouts too.

Dismal Science of Ending the Shutdown

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It’s a dismal science for the governors of Georgia, Tennessee, and South Carolina as they re-open their states for business. And public health officials aren’t excited about the prospect. Here’s Dr. Fauci:

“We are scientists, physicians, public health officials. We’re not economists,” he said on CNN’s “New Day.” “We’re sensitive to the idea that the economy could suffer, but it was patently obvious looking at the data, that at the end of the day if we try to push back prematurely, not only would we lose lives, but it probably would even hurt the economy.”

Kevin Liptack, CNN

Dismal Science

So, how much is a life worth? Economists have a plan for that:

Economists use the Value of Statistical Life. It measures the value placed on changes that increase likelihood of death, not the value on a human life to avoid death. “It’s used in court cases when assigning damages,” Camerer said. I could make a highway a little safer at a very high cost. This is one reason economics is called the dismal science.

Quentin Fottrell, MarketWatch

Race Against Time, Virus vs. Savings

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It’s a race against time. Can the virus be spent before your savings?

701,000 American jobs were lost in March and the unemployment rate rose from 3.5% to 4.4% in one month according to the WSJ.

Meanwhile, The Guardian says about 35 companies are working on a vaccine and Moderna is about to begin human testing. And “many many‘ groups are working on immunity-giving antibody tests that provide results in minutes.

Two Trillion Dollar Stimulus Brings Back Bull, For Now

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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.

Senate Stock Market Tycoons

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White House and Senate agreed to a $2 trillion stimulus deal for the economy. And the economy likes it. The Dow shot up 11% for its best day since 1933.

Speaking of stocks and Senators, some senators dumped stocks just before Corona virus market meltdown.

Senate Stock Market Tycoons

Here’s Professor Jonathan Turley writing in The Hill:

Senators Richard Burr, Kelly Loeffler, James Inhofe, and Dianne Feinstein together are responsible for as much as $11 million in recent stock sales. It turns out that many lawmakers become market investment geniuses after they enter Congress. A University of Memphis study found that 75 percent of randomly selected members had made “stock transactions that directly coincided with legislative activity.” A Georgia State University study noted that, from 1993 to 1998, senators beat the stock market by 12 points with their portfolios and outperformed “corporate insiders” by 8 points.