Explaining the Byzantine Congress-Fed Bailout Programs-audio
April 10, 2020 by jackrasmus
In just the past four weeks the US Congress and the Federal Reserve Bank (Fed) have introduced an array of of 3 Legislative Acts (Congress) and multiple Lending Programs (Fed) in response to the deepening economic recession. What are these programs in detail? How are the Congress-Fed programs inter-related? Which address the income needs of the real economy and which that of businesses and the banks. Who’s getting how much bailout from where? Will it be enough to prevent a further downturn of the economy? Will it be sufficient to generate a ‘V-Shape’ snap back recovery in the second half of this year–or is the economy now so wounded that a dynamic has set in that means whatever the outcome in controlling the virus, the US (and global) economy will continue to contract? And what, not least, is the likelihood that a financial-banking crash might eventually occur, thus making the recession even worse? Perhaps even paralleling the 1930s?
Listen to my Friday, April 10, Alternative Visions, radio show where I address and discuss these various questions.
GO TO:
http://alternativevisions.podbean.com
In today’s show Dr. Rasmus unravels and explains the array of bailout measures being passed by Congress (3 Acts + 1 in the works) and the Federal Reserve Bank’s multiple programs to inject trillions of dollars into financial markets and non-financial businesses alike. How are the two bailouts—Congress and the Fed’s—integrated? How much of the trillions of loans, grants, tax cuts, subsidies, unemployment benefits, cash checks to households, etc. are actually getting into the economy and how much in bottlenecks. Is the magnitude of the bailout sufficient to prevent a great recession like 2008-09? What about the ‘composition’ (% spending, tax cuts, loans, grants, etc.)? Is it the right ‘mix’ to have an effect? Will the Fed’s trillions of liquidity injection be enough to prevent business, local government and household defaults that can lead to a financial crash? Why are many economists, following Trump’s lead, saying the economy will recover rapidly in the second half of this year despite the record collapse of the economy in this quarter? How does 2020 compare so far with 2008-09? With 1929-33?
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