Vaccine vs. Stimulus
American Congress argues about further stimulus. Will we dole out another $1 trillion or 2, after a $3 trillion dollar stimulus. No big deal, this is about 5-6 times the amount of the cost of the New Deal in today’s dollars. And guess what, we’ve only devoted $10 billion to a vaccine, the CAUSE of the recession. Meanwhile, we’ve pumped money into the economy at an unprecedented scale. In addition to the fiscal stimulus, the Fed has made added another $3 trillion to it’s balance sheet.
Why are we not investing more into a vaccine?
The answer is gross. There is a financial incentive to not solving the problem. Emergency provides an opportunity to pillage the society for “special interests”. Perhaps some of our leaders are not capable of such treachery, but to be sure some of them are. Invest just enough to keep those pesky citizens off of our back and fight over where their money goes. Meanwhile, as millions can’t pay their rent the stock market hits an all-time high. At an all-time high because the government bank has created financial entities (they can’t be called companies, you see) that pump money into ETFs (traded on the stock market) at the discretion of a hedge fund. Yes, this is really happening.
Think very clearly about the financial incentive here
There are many people being paid handsomely by this suffering, and if someone else doesn’t, someone will. This is a terrible moral hazard that no one is talking about.
We needed an excuse to print more money for “deleveraging” from the last leveraging from the last “deleveraging”. Our government needs to take a HELOC on any equity left on the mortgage.
It is either this awful sort of corruption, or our government and leadership is stupid, inept, incompetent. You decide which is worse.
Welcome to the beginning of a lost decade?