WASHINGTON (AP) — The Federal Reserve is taking additional steps to provide up to $2.3 trillion in loans to support the economy. The money will target American households and businesses, as well as local governments besieged by the coronavirus outbreak.
Loans? More individual and business debt.
Please keep Trump out of any decisions on how the money is doled out.
The Federal Reserve is taking additional steps to provide up to $2.3 trillion in loans to support the economy.
And all the money will go to businesses, which have no incentive to operate with their major markets shut down.
FDR already showed that if you want to spur the economy, money has to go to the people who need it most – business can not be relied upon to act as an effective intermediary for aid in an economic collapse. Even Boris Fucking Johnson got that.
Presses running over time.
Liberal wackos, let people and businesses sort it all out on their own like Republicans always tell us to!
Trump Taxpayer Trillions Titillate Titans.
I think that’s the idea. Businesses across America will be enslaved by the financial sector…which is a GOP wet dream.
I wonder why giving money to biz won’t make them lazy and destroy their incentive to work but it will if given to people? And isn’t it funny how quick the GOP could get 2.3 trillion out to save the economy when a GOP’er is president but 1 trillion to do so when a Democrat was POTUS was just so wrong.
They have no incentive to work: who’re they gonna sell to?
Or, are they gonna increase their overhead by putting all the product in storage for fatter times? In that case, we might as well go with Keynes’ suggestion of directly paying people to bury and dig up gold. That way, at least we cut out the cost of the middle man.
Really, it just looks like a part of the right’s long term plan for an upward redistribution of wealth in this country. At the very best, the return on that in depressed economy is going to be worth pennies on the dollar, IMHO.
The justification is the preservation of small biz so that when the economy does restart it will be there to hire folks. I can’t speak to the feasibility in that but it does seem like more GOP wet dream stuff. Now we have a 555 billion dollar slush fund that’s near impossible to follow and who wants to bet where that’s going?
I suppose a set of bootstraps will be provided with each loan to soothe the concerns of congressional nihilists?
Funny that… I’d think the best way to preserve small businesses, most of which serve a relatively limited and relatively local clientele, is to put money in the hands of their prospective customers. Whether directly or indirectly, that involves getting money to consumers, whose spending will ramify up a purchasing chain.
Of course, that reduces the opportunities for creaming the system.
Or have I misapprehended the global economy?
During the dust bowl, Hoover wanted to primarily give federal funds to businesses, so they could produce more product to sell.
FDR said there was no purpose in doing that if the average citizen didn’t have any money to buy those products.
FDR won in a landslide.
Let’s do that again this fall.
It is the government’s job to provide aid to individuals
The Federal reserve bank deals in loans
and monetary policy not fiscal
Maybe we should drug test them first. Like Rick Scott did in Florida.
My 60+ year-old brother, with wife, three kids, mortgage, car payments, was laid off yesterday. I’m checking into getting $$$ from my savings to help him, while also continuing to help my ancient parent who’s surviving on $830/month. I have Medicare for All (of Me) and Democratic Socialist Security, but I’m feeling the Bern, I mean, feeling the strain. Living the American Dream!
What good are bootstraps when you’ve been cut off at the knees?
That’s a bingo! WE are the economy, not THEM.
Are there any incentives/directives/requirements that the businesses receiving these loans pass the money on to the employees they laid off?