By Ebony Bowden, NY POSTS
WASHINGTON — An emergency stimulus package to bailout the U.S. economy amid the coronavirus pandemic will total $6 trillion — a quarter of the entire country’s GDP, the White House said Tuesday.<
>
Trump administration economist Larry Kudlow said the package would include $4 trillion in lending power for the Federal Reserve as well as a $2 trillion aid package currently being hammered out by Congress.
“This package will be the single largest main street assistance program in the history of the United States,” Kudlow said at the White House coronavirus task force briefing on Tuesday evening.
Included in the package is Congress’ almost $2 trillion emergency bill which, when passed, will issue direct checks for American families, bailouts for the airline industry and a $350 billion loan program for struggling small businesses.
The other $4 trillion will allow the Federal Reserve to make huge emergency bailouts to whatever entity it chooses — a measure that was used to prop-up Wall Street firms from collapse during the 2008 financial crisis.
“This legislation is urgently needed to bolster the economy,” Kudlow added, warning the economy had tough times ahead.
“We’re heading for a rough period but it’s only going to weeks, we think. Weeks and months. It’s not going to be years, that’s for sure,” he said, echoing comments from President Trump that the economy will bounce back to its pre-pandemic high.
Kudlow, a former Reagan administration adviser and media personality, said the huge bailout would “position us for what I think can be an economic rebound later this year.”
A tidal wave of U.S. workers are facing unemployment in the wake of the COVID-19 outbreak — with White House officials warning of a 20 percent unemployment rate.
“U.S. initial unemployment claims for the week hit 3.3 million!
That’s 12 times more than the previous week.
It means the unemployment rate is headed for 30% or more, at least TRIPLE the worst unemployment of the Great Recession.
It means that corporate earnings aren’t just going down. They’re disappearing, turning from black to red.
It means millions of people will rush to sell any asset they can lay their hands on — not just stocks and bonds, but also homes, farms, used cars, antiques, rare coins, even baseball cards.
And it inevitably leads to an unprecedented destruction of wealth … which, like the virus itself, does not distinguish between rich or poor, middle class or elite. Everyone loses, except for the small minority like you and me that are prepared.
No wonder Congress is in a mad rush to pass the largest economic stimulus package of all time!
And no wonder we can already hear a loud chorus of voices saying it won’t be nearly enough!
Most people seem to think this is all caused by the coronavirus. But is it really?
Or is it primarily the natural consequence of the Bubble Decade?
A giant Everything Bubble, driven by massive Fed money printing … financed with near-zero interest rates … fueled by wild speculation … and just waiting for the right black swan event to bring it all down?
We shall soon find out.” From the Weiss Ratings site, March 26.
@ Michael S:
That’s the first time I ever heard or read about Chinese people cheering 9/11. If it were true not only would it have been reported back then, but with all the hatred happening now it would be bound to have already come out. Can you provide a legitimate source? If not, then…..
@ Buzz of the Orient:
Buzz, my intel has it that many Chinese have been saying just that — just as they broke out into applause when they saw the airplanes crashing into the World Trade Center in 2001. Now that China is on the receiving end of the virus instead of the dishing out end, they are harrassing obvious Westerners like my daughter.
People stink, the world around. That’s why God struck the whole world with this coronavirus.
I don’t think China will bail America out or even assist taking into consideration the amount of interference in China’s domestic affairs as in Hong Kong and the Uyghurs, topped off with blaming China, and inciting xenophobia, racism and hatred with their “China virus, Kung Flu and Wuhan Virus” ON TOP OF starting and continuing a trade war and military provocations at the South China Sea and Taiwan. I would not blame China if they told the USA to go f*** themselves.
History suggests that this massive increase in the money supply will debase the value of the dollar. Read your Roman History.