Unboxing the Huge Stimulus Package
Yesterday in Washington, red and blue senators and congressmen and women struck a historic deal. They agreed on a two-trillion-dollar rescue bill to be put before the House for final esteem, a package that will get all the credit when America rebounds from this virus-induced economic hell. Here’s what investors should know!
Blue chips get $500 billion. That money can be used to service debt, so if a big-time employer finds itself with more short-term obligations than short-term means, it shouldn’t have to lay off workers to keep the lights on. Airlines get $50 billion alone.
Smaller businesses get $350 billion, not because politicians love them less, but because fewer angry lenders are chasing them for money (no less angry, however!).
Hospitals get $150 billion. These are essential funds to buy medical supplies like ventilators and intensive care units (ICUs). You can’t throw money at hospitals to make the virus go away, but this will save lives.
The average joe gets a $1,200 check on April 6th, a helicopter payment! Excited? Kids get $500. Whether the money is invested into the stock market or into off-white Yeezys, the economy will benefit. Think of the retail-driven stocks like Virgin Galactic, Tesla, and Canopy Growth that could be about to see a flush of new money!
States get $400 million each for election assistance, meaning President Trump will probably still defend the White House in November as people vote by mail. State governors insisted, however, that Trump’s own companies can tap none of the help in this stimulus package. That will make it an interesting year for Big Don’s beloved Mar-a-Lago!
And that’s pretty much it. The “will they or won’t they” drama of modern politics has led to pent up excitement for this bill on Wall Street. That’s why stocks posted back-to-back gains yesterday for the first time this month. They could make it three in a row today if unemployment figures aren’t too ugly!
Expect a breakthrough in the House of Representatives during today’s trading session!