Covid relief bill could be very bad for economy (2021)

How much did stock market crash a year ago?

 

Worked like a charm. He lost.

 

Let's be completely fair, a good part of that crash was very short-term.
And it's not like we haven't seen any economic consequences. (Although most of that probably hasn't been from the stock market)

 

You need to make up stuff to short rebuttals because your claims are partisan to you but in reality it's just business as usual to both parties.

 

Yes short term because of the free money. $3T or so.

 

It is kind of their job.

 

A lot of them were going to go under anyway. Can't compete with Costco and all the other warehouse clubs for price or employees.

 

If Biden does not create the illusion of "growth" then he loses any footing he has to call for new spending on new programs because "we can't afford it" will be the GOP spear and shield.

 

Yes but I don't see how they can keep up the illusion of more and sustained growth for 4 more years.

(I mean just reflected all in the stock prices, not necessarily talking about the economy)

You would think. But American voters and politicians seem to have a very short memory on things like this.

 

You would be surprised at how effective fake it til you make it thinking is. Just look at America's household debt numbers and then add in the federal debt and state and local debt. It is surely closing in on $80T. No worries. Eventually we will win the powerball.

 

I'm wondering, when in recent memory (if ever) has the Fed ever actively exerted pressure to try to increase interest rates?

Why does everyone only ever want low interest rates, even during supposedly "good" times?

Is this really a good thing for the economy?

Doesn't lending out money (at below market interest rates, which is how the Fed lowers interest rates) contribute to inflation?
(That was entirely a rhetorical question)

 

The fed uses it rates to control the flow of money in the economy. It is usually referred to as "liquidity" or "liquid assets" instead of cash or readily cashed in assets. While I understand the point you are making about their obsession with inflation, our economy would go wildly out of control if someone like Walmart, Google, or any of our big companies suddenly couldn't make payroll because there wasn't enough cash or credit in the system (though I doubt those two would ever be in that situation). One company I can think of that did recently have liquidity issues was Robinhood. They had to scurry around at come up with $3B when the National Securities Clearing Corporation asked for them to deposit that much. It is assumed that is the reason Robinhood put limits on trading of certain stocks whether or not they had anything to do with Gamestop.

Banks somewhat set their own lending rates partially with what the fed is doing on long term rates, but often it is simple supply and demand for loans and credit. If Bank of America can process 25,000 mortgages a week, they will tinker with their mortgage rates to try to match the number of applications with the number it can process by going above or below what their competitors are charging.

 

I hate to disagree with you (or to get off the main topic of this thread) but I doubt the difference between 1% interest rate and 5% would really make much of a difference to liquidity issues.

Also the rest of your post, while good and correct, was off the point.

Obviously the interest rates set by private banks are going to be highly influenced by the Fed, since the Fed is lending them the money. Interest rates from banks will end up close to those of the interest rates from the Fed to the banks.

It can get "expensive" for the Fed to loan out all this money (at below market interest rates). The cost is borne in inflation.

(It makes sense of course. If I can borrow money from you at 1 percent, and use that to get a 3 percent return somewhere else, then obviously that wealth has to come from somewhere. But in reality, lower interest rates typically drive up the selling prices of interest-bearing investment assets)

 

TAXATION IS ALL ABOUT ME, ME, ME!

Nope. But if it spends money, that effort will have been well-spent. (Worrying about the funding should provoke us to understand that upper-income taxation is all-wrong, all-wrong, all-wrong.

There are a lot of issues in which we disagree. Is that a discomfort for you? It makes for good debate ... !

More stimulus is not needed but, yes, the US has to worry. It has started too late and the death-rate is already far too high. (Thank Donald-Dork next time you see him! How Americans can be so easily bamboozled by a first-class JERK is amazing!)

The Repicants will make a come-back because Yanks still think it is the Money-Machine that matters most in their lives. Unfortunately, they do not comprehend that Uncle Sam's Money-Machine Taxation is inherently-unfair and incarcerating far too many below the Poverty Threshold. Upper-income taxation should be at 95% and death-taxation as well.

WHAT CAN YOU DO? WHAT CAN ANYONE DO if Americans can't get it through their thick-skulls that the Replicants are the most selfishly egotistical political-party on earth. Their national political-theme is - TAXATION IS ALL ABOUT ME, ME, ME! AND I WANT MY MONEY BACK!

When Uncle Sam learns how to tax-'n-spend properly - on National Post-secondary Education and not the DoD - then just-maybe the proper correction will have taken place!

But not before ...

 

Still more one-liner junk commentary.

If you've got a good argument then make it! For the moment, the one-liner "dairy-air" in this forum is all yours ... !

 

Your position does not explain why as mortgage rates go down consumer lending and credit card rates are going up--way up.

 

Supply side as the capital stays in the market to get lines running again and people working to produce the things people want and need to buy with the money they have horded up.

 

You must have no good argument at all.
You had to go ad hom for your post.

The ad-hom is all yours in this forum.

Why does a fact need more than a 1 liner?

trump spent and gave more money for covid stimulus than Biden. Fact. Simple.

So, trump gave more.

 

So you're saying if the country spends more money, that is a good thing. Yet you say that the country does not need more stimulus.

Does that mean you think this spending of money will serve some positive purpose other than stimulus?

 

FACT THIS!

Sheer pettiness on your part. Nothing more cogent to say?

Above all, when it is well deserved.

Sheer pettiness. Nothing more cogent to say?

My posts have had full justification by means of researched facts.

Which is one helluva lot bettah than the rubbish with which the "rightists dorks" rebut.

You need to buy a dictionary:
Fact: something that is known to have happened or to exist, especially something for which proof exists, or about which there is information:

And in economic debates the facts are in the numbers ...

Pretty dumb as a factoid. Covid Stimulus means that he refused to have an anti-dote delivered free, gratis and for nothing to the American people!

Historical Fact:
*Donald Dork refused early anti-covid inoculations, which is why so many have died. And, as a result,
*So many are lining up FINALLY to get their "shot".
*And, even still, this will not complete put the Covid-fire out. The deaths will continue until a major part of the adult population has been inoculated.
*The over 55, being the most attainable, are about 30% of the population. Around 90 million adults.
*THAT is going to take one helluva long time, since many of the infected are "ripe" - that is, many will succumb to the plague regardless of the inoculation because it was given too late..

Gave more what? Lots of BS that provoked a herd of idiots to physically attack Congress. (Over 300 have since been indicted!)

Five women have invoked a court-case for sexual assault. And a good many more have spoken publicly of his sexual assault upon them. It's all here: Donald Trump Sexual Misconduct Allegations ...

 

Will you STOP taking my quotes out of context! The above is all-wrong, all-wrong, all-wrong!

Depends upon what a country spends the money on.

In the US we want to spend one helluval lotta moulah on the DoD. In Europe, we spend the money on Healthcare and Post-secondary Education. Good policy-management IS SIMPLY A QUESTION OF CHOICE .... !

 

Then could you explain what you meant?
(keeping in context my critique of your post)

The way it seemed to me, the logic you were using in your post didn't seem very consistent.

 

He's saying that Trump offered to throw out a lot more money to everyone (direct cash transfers) than Biden, while - let me add - still keeping the cost to the taxpayer lower than what Biden's "relief" package will cost.

 

trump signed 2 different packages. In total, it was about $3T.
Biden hasn't got that much yet. But will likely be close if the entire $1.9T passes, which it doesn't seem likely at this point.

 

ONE VERY SICK PERSON

Trump "says" a lot of things. Mostly, he does not think before talking. The guy is sick-in-the-head. Sick, sick, sick - and he aint going away.

He's one helluva stubborn "S.O.B" - for instance, see this excerpt here: "Psychologists and Donald Trump":

Need more be said ... ?