the dems in congress. are very likely to add more ■■■■. like student loan forgiveness or something about illegals.
but it looks like airlines are about to get an influx of free cash. govt looks like to take a stake or some form of nationalization. good for their workers and the equity holders.
Am I getting a check?
yea since you make less than 100k
At least I’m trying.
at least ur working. a ton of people are getting laid off. cant wait 6 months from now once unemployment dies off. a ton of people in california have no money. 65% of them dont even have $500 of emergency money. and 50% of their salary was going to rent. now they have no jobs. and the govt will continue to keep this shut down. its a ■■■■ show. stimulus bill is good. but it aint enough to keep them afloat. but a lot of opportunities abound for those who can keep their jobs. leverage is key.
in terms of bailout money for corporations. imo govt should take an equity stake. dilute current shareholders at current prices as punishment. and take board seats and control. force them to keep workers employed to further punish weak companies for their div and buyback policies in the last 10 years.
Get rid of -npv people now!!!
A big time crisis might have been pushed further into the horizon. What I’m worried about is that now when we’ve taken this path of unlimited asset purchases, QE, helicopter money and what not, how will a future crisis look like? At some point markets will completely lose faith in monetary policy and the power of central banks.
It’s been the same song and dance since subprime. I’m calling this now. This will lead to the mother of all crises. These packages are akin to pissing your pants when you’re cold. This will end in tears.
We already saw cracks in the markets’ faith that one weekend (March 15th I think) when fed announced their first stimulus package and the markets took a nose dive. Sooner or later we’ll find ourselves in a free fall without the central bank parachute and that’s going to be ugly.
I think this was the perfect response to this crisis, both get an A+ on fiscal and monetary although the Fed was the better of the two. The F goes to our failure to repair our nation’s fiscal position ahead of this kind of need and I do think will only add to the coming pain points in mid 2020’s as SS and Medicare needs run headlong into a building deficit to push a difficult to absorb number of treasuries into the market.
We’ll see how this thing plays out. IMO, throwing the kitchen sink at it at this point was premature. If the covid-19 situation deteriorates big time in the US in the coming months and the markets/economy follow suit, what tools does the Fed have left to turn the tide?
If you are going to lose a lot of credit, then you might as well do qe and fiscal spending to make up for it.
Here’s what I typed in a LinkedIn post:
This is more than most people want to read, so I’ll keep it brief:
Most people will get checks/direct deposits of $1200 per adult and $500 per child in the next few weeks. This is an “advance tax credit” from your 2020 tax return (the one due in April 2021). Meaning, it’s just like a tax credit, but you’re getting the money NOW, instead of when you file return a year from now. It phases out for people who make more than $150k (married filing jointly) or $75k for single filers.
You can take up to $100k out of your qualified retirement plans (IRA, 401k, etc.) without being subject to the 10% penalty (for people under the age of 60). However,
a. You have to pay it back within three years, AND
b. You have to have “experienced adverse financial consequences from being quarantined, furloughed, laid off, had hours reduced, or unable to work due to lack of child care”. So if you are currently “working from home” and still paid your full-time salary, you probably don’t qualify.
- “Over-the-counter menstrual care products” can now be purchased through your HSA’s. (Thank you Congress. I’m glad you’re focused on the important things in life.)
There are many other provisions in the CARES Act bill, but this is what most people want to know.
Here’s the AICPA’s take on it.
i dont think you gotta pay it back within 3 years.
Retirement plans: Taxpayers can take up to $100,000 in coronavirus-related distributions from retirement plans without being subject to the Sec. 72(t) 10% additional tax for early distributions. Eligible distributions can be taken up to Dec. 31, 2020. Coronavirus-related distributions may be repaid within three years. For these purposes, an eligible taxpayer is one who has been diagnosed with SARS-CoV-2 virus or COVID-19 disease or whose spouse or dependent has been diagnosed with SARS-CoV-2 virus or COVID-19 disease or who experiences adverse financial consequences from being quarantined, furloughed, or laid off, or who has had his or her work hours reduced, or who is unable to work due to lack of child care. Any resulting income inclusion can be taken over three years. The bill also allows loans of up to $100,000 from qualified plans, and repayment can be delayed.
Well, broad market purchases of stocks…this is how the government ends up owning the means of production. I mean, we are already on the way to socialism as a result of this crisis (/s kind of).
In Japan, the government is already a top-10 owner in 50% of NIKKEI stocks. Maybe this is the path the Fed and the ECB will follow?
Haha yea they got some hard losses on their etfs. Imo government should be allowed to purchase stocks especially since it’s so cheap.
The entire American financial system just collapsed.
Needed an immediate $6 trillion cash injection to prop it up.
I think the stimulus is OK. Would been better if they used some funds to buy tests and get this under control.
No economic system can survive a sudden, complete stop. If it did, it wouldn’t be an economic system. The stimulus package was the only option to prevent a wave of bankruptcies.