Has anyone recognized the role of the coronavirus in revealing the widespread folly of our era? It’s surprising how little is discussed about this topic online, and we aim to change that narrative.
At present, Congress is deliberating various stimulus packages. Given the chaotic election year and a surge in unemployment, there’s an impetus to capitalize on public sentiment. The three prominent proposals include the Automatic Boost to Communities (ABC) Act, the Emergency Money for the People Act, and the Monthly Economic Crisis Support Act.
With such appealing names, who wouldn’t support them? Each proposal centers on providing a $2,000 monthly stimulus check. The differences lie in the duration and eligibility criteria.
The ABC Act, introduced by Congresswomen Rashida Tlaib and Pramila Jayapal, is marked as the most ambitious. This act proposes $2,000 monthly payments to all taxpayers and their dependents for a period extending one year after the official termination of the coronavirus emergency—whenever that may occur. Continue reading
Globally, central planners exhibit a strong disdain for the free exchange of goods and services. They operate under the delusion that they possess the capability to restructure the world to align with their ideals. This misguided belief often leads to damaging interventions.
Some central planners, such as Fed Chair Jay Powell, assert they are rescuing the global economy by flooding it with printed money. Others, like AOC, seem indifferent to economic stability as they focus solely on redistributing wealth to match their vision.
The chaos instigated by extensive government intervention has intensified due to the coronavirus crisis. Central planners have taken a precarious situation and made it significantly worse, ostensibly to ‘build back better.’
The initial lockdown was enacted to flatten the curve, resulting in over 33.5 million new unemployment claims within a mere seven weeks. Subsequently, large bailouts for major corporations were introduced to stabilize collapsing financial markets. Furthermore, one-time relief checks were distributed to the general public. And this is only the beginning. Continue reading
The S&P 500 has seen an increase of over 30 percent since its closing low on March 23. Remarkably, it is now only about 18 percent short of its all-time high closing value from February 19. Is it possible that the tumultuous market phases are behind us, with only clear skies ahead?
Why not? Fed Chair Jay Powell is energetically directing monetary policies, Treasury Secretary Steven Mnuchin is comforting his Wall Street allies, and a determined Congress is pushing for a staggering $4 trillion deficit.
With all this artificial money flooding into financial markets, now seems like the perfect time to invest in stocks—right? The answer, of course, hinges on personal risk tolerance.
Billionaire Carl Icahn doesn’t share that optimism; rather, he sees the stock market as overvalued. With decades of experience in stock market fluctuations, he knows what he’s talking about.
Instead of purchasing stocks, Icahn is stockpiling cash, shorting commercial real estate, and bracing himself for potential “significant downturns” triggered by the coronavirus. Continue reading
Investor and American icon Warren Buffett has been relatively inactive lately, a stark contrast to his actions during the 2008-09 financial crisis when he eagerly invested in firms like Goldman Sachs and Bank of America in exchange for favorable returns. But times have changed.
Currently, instead of pursuing deals, Buffett states he’s “…drinking a little more Coca-Cola” to ward off the effects of the coronavirus. But is that truly the extent of his activities? Bill Ackman, a Buffett admirer, believes otherwise. Ackman, who has been aggressively expanding his stock portfolio, suspects that Buffett is quietly putting his substantial cash reserves to work. When asked about this, he noted that Buffett could be maintaining a low profile to ensure he can acquire stocks at lower prices. “Once he invests that $100 billion and change,” Ackman remarks, “he’ll make his moves known.”
Perhaps that is the case. Ultimately, kudos to Buffett and Ackman. If they are prepared to commit billions into the stock market right now, more power to them. Continue reading
In summary, the intersection of government intervention and economic turbulence has revealed a complex landscape. As various proposals seek to address the fallout from these trying times, it is essential for citizens to remain informed and engaged. By maintaining a keen awareness of the economic environment, individuals can better navigate the challenges and opportunities that lie ahead.
