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kentuck

(111,499 posts)
Tue Mar 24, 2020, 11:30 PM Mar 2020

"Fake" Stimulus

I was just watching a discussion on Lawrence O'Donnell's show and how this economic downturn was worse than the bank crash in 2008 and the stock market fall in 1987. Lawrence thought it was worse than the stock market crash of 1929.

The point that stood out for me in the discussion was that this economy cannot be stimulated in the condition that it is presently in. That is a shocking statement.

And it may be true. All the trillions of dollars that the White House and the Senate want to throw at the stock market and into the pockets of consumers will not stimulate the economy at this time. People are dying and they are afraid to leave their homes.

There will need to be more confidence and a lot less fear before we can recover from this frightening virus. The stock market has little to do with Main Street at this time.

The stock market and the economy cannot be the primary concern of our leaders in Washington. They must be focused on saving the lives of Americans. The growth line of the virus in the US has now surpassed all other nations. (The speed at which it is growing is above all other countries)

The sad fact is that Donald Trump and his sycophantic followers must get on the same song sheet as the rest of America. Going to church on Easter Sunday and praying that God will save us might not be enough. God may have given us science, and data, and knowledge for a reason?

Money cannot save us. It cannot save our economy. It cannot save our country. We must all fight this disease together or it will strike a terrible blow upon us all.

12 replies = new reply since forum marked as read
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"Fake" Stimulus (Original Post) kentuck Mar 2020 OP
people will spend the money to pay bills not go on a spending spree closed stores nt msongs Mar 2020 #1
Paper money, gold and silver only is worth it's value . . Iliyah Mar 2020 #2
We don' t really know the speed of growth. The numbers are jumping because with more testing... pat_k Mar 2020 #3
I agree. kentuck Mar 2020 #12
He makes $4 million a year DashOneBravo Mar 2020 #4
We should be holding on MoonlitKnight Mar 2020 #5
Yes. kentuck Mar 2020 #7
I think it is important not to panic... kentuck Mar 2020 #6
It Is An Odd Situation, Sir The Magistrate Mar 2020 #8
Welcome back Sir DashOneBravo Mar 2020 #9
Yes Sir, it is different from all other recessions and depressions... kentuck Mar 2020 #10
My God I think I'm in love. HarlanPepper Mar 2020 #11

Iliyah

(25,111 posts)
2. Paper money, gold and silver only is worth it's value . .
Tue Mar 24, 2020, 11:35 PM
Mar 2020

when consumers spend. Consumers mean, the little people, like me.

pat_k

(9,314 posts)
3. We don' t really know the speed of growth. The numbers are jumping because with more testing...
Tue Mar 24, 2020, 11:37 PM
Mar 2020

... more are detected.

The number tested per 10,000 in WA and NY has been skyrocketing in the past 10 days or so.

I don't mean to minimize how dire things are, but we will not have any real sense of the actual rate of increase until testing is fully "ramped up" (in at least a few states) and running at the same capacity for some period of time.


kentuck

(111,499 posts)
12. I agree.
Wed Mar 25, 2020, 07:45 AM
Mar 2020

We will not know the real increase until we get more testing. It seems very minimal up to this point. Some honesty and competence would do a great deal to restore confidence in the people.

DashOneBravo

(2,679 posts)
4. He makes $4 million a year
Tue Mar 24, 2020, 11:40 PM
Mar 2020

And has a net worth of $16 million. He’s not even going to feel a financial effect at all.

MoonlitKnight

(1,584 posts)
5. We should be holding on
Tue Mar 24, 2020, 11:42 PM
Mar 2020

By paying workers so they can pay bills.

Then focus on an infrastructure plan that will start when we emerge.

kentuck

(111,499 posts)
7. Yes.
Tue Mar 24, 2020, 11:50 PM
Mar 2020

I think those are the types of solutions that we will need. If the government needs to create jobs, then so be it.

kentuck

(111,499 posts)
6. I think it is important not to panic...
Tue Mar 24, 2020, 11:49 PM
Mar 2020

We do not know if this virus will mutate and become even more deadly?

But people have only been in their homes for about 8 days. The stock market has been free falling for somewhat longer.

But, if our economy cannot survive for a couple of weeks without its workers, then that is another question?

We need to find a vaccine and we need to keep the hospitals from overflowing and we need to work together.

The Magistrate

(95,636 posts)
8. It Is An Odd Situation, Sir
Tue Mar 24, 2020, 11:51 PM
Mar 2020

Usually such a downturn owes to destruction of capital, failures of liquidity. This one does not, it results from a forced reduction in consumer spending which has nothing whatever to do with fluctuations and panic in the money markets. Capital is not so much destroyed as put into 'mothballs', like so much military equipment after WWII, and maintained inactive though still quite capable of function. Once the contagion is under control, things can taken out of their cosmoline and got back in use. The joker is that no one can say how long this period will last. Pent-up demand should get things humming in short order, once the contagion is more or less under control. But people have to be maintained at a reasonable standard during the quarantine which for some while will be the only weapon against the contagion, and businesses, too, must be maintained through the period of greatly reduced demand. This will take grants of money, there is no other practical way. Financiers and other sharpsters cannot be allowed to use this genuine need to soak up public monies to their own use.

kentuck

(111,499 posts)
10. Yes Sir, it is different from all other recessions and depressions...
Wed Mar 25, 2020, 12:05 AM
Mar 2020

It has attacked the heart of capitalism itself.

We should not be that concerned with large corporations or Wall Street, at this time, in my opinion.

We should try to maintain our small businesses and our working population.

If government needs to create jobs for people to maintain order and survival needs, then so be it.

These are the solutions we may have to look at when we do recover?

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