A Fatal Delay?

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Originally, Senate Majority Leader Bitch Mitch McConnell had a cloture vote scheduled for three o:clock today to move forward with his trillion dollar stimulus package. That vote was pushed back until six o’clock when it became apparent that the Democratic resistance to several clauses in the package would stop Yertl the Turtle from getting the required 60 vote threshold.

Apparently, the Democrats are pushing hard for their vote-by-mail proposal to be included, as well as wanting more severe restrictions on how companies and corporations who receive bailout loans can use the money, such as no officer bonuses, and no stock buy backs. But as Ron Insana of CNBC noted, this could turn out to be a fateful and injurious delay.

Because 6:00 EDT is when futures trading is set to open for the Dow Jones stock exchange is scheduled to open. After losing more than 900 points on Friday, the market is desperate for some sign, any sign that the government has things under control, and that things will at least stabilize. The market has heard nothing but bullish news from the Senate since Friday, forecasting a trillion dollar package, with direct payments to every American, all within two weeks, and swearing that the Senate would not adjourn until that bill was passed. If that bill fails, or has to be delayed until tomorrow, then look for the stock market to fall off of the cliff again from the open, I predict with another circuit breaker halt to trading.

Because this is the new reality. As I pointed out recently, the stock market long ago stopped listening to Trump, they know he’s full of nothing but shit, and when they do pay attention, they piss their pants, and the Dow drops by another grand. But the market also knows that for almost anything substantive to be accomplished, especially on the economic front, congress will have to be the major power player here, not Trump. It requires legislation to craft and implement the kind of structural fix that is needed, and that means congress. So that’s where the market is looking.

The thing that the market hates the most is uncertainty, and right now, that’s all they have. They are getting one set of numbers and predictions from the Trump administration, and then a completely different, and much more ominous set from Governors and Mayors. Trump, congenital retard that he is, continues to insist and act like this is a political messaging crisis for the economy. And it’s nothing of the sort. This is a national health crisis. The market could care less what the closing number is right now, they know that will fix itself under the right conditions. What the market is desperate for right now is reliable information on how bad the crisis is, how much worse it will get, and what will be done to stabilize the situation. Because the simple fact is that the only thing that can fix the Dow is to get the crisis under control, something Trump just doesn’t understand.

Which is why congress is so important right now, and why the market is looking there. Congress has the power to pass the legislation that will at least help to calm the fears of the American public, and give at least the illusion of confidence going forward that the government is functioning, something they haven’t seen up until now. Congress can also demand, and if necessary legislate the kinds of things that the Trump administration needs to be doing to get this under control.

Which is why the delay of this vote today is so dangerous, and possibly even ominous. All weekend the congress has been speaking with a largely unified voice, confident of getting the job done. Had the vote gone off as planned, that could have given the futures market traders confidence that something positive was finally in the works, which may have been enough to send the Dow significantly up at the opening bell tomorrow. Instead, today the Senate gave every indication that it can’t get its shit together either, which can’t be expected to have a very positive effect.

This is about to become a major problem for congress. Pelosi passed two emergency bills, which ended up being signed by Trump. McConnell has vowed a killer stimulus package in a shortened time frame, which will bring instant relief to worried Americans. Basically, by its actions so far, congress is pretty much stepping up and taking responsibility for fixing this problem, and getting it done soonest. But of these procedural votes start to falter, and if Pelosi throws a monkey wrench into the works with a separate House package, and momentum starts to stall and American start to think that no help is on the horizon, then these congress critters and Senators are going to start coming in for a share of the blame that up until now has been reserved exclusively for Trump and his merry band of freebooters. And the election is less than 8 months off. Tick-tock.

To know the future, look to the past.before the insanity of the 2020 election, relive the insanity of the 2016 GOP primary campaign, and the general election, to see how we got to where we are. Copies of President Evil, and the sequel, President Evil II, A Clodwork Orange are available as e-books on Amazon, at the links above. Catch up before the upcoming release of the third book in the trilogy, President Evil III: All The Presidents Fen

 

 

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2 Comments on "A Fatal Delay?"

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Shawn
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Shawn

It is McConnell that is trying to pull a fast one…money that should be available to all will just be another bail out to corporate who will then reinvest in their own stock as they did with the last huge trickle down incentive…that only trickled into their buying back their own stock…..maybe corporations should be more responsible when they billions in incentives….!!!!

MaryS
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MaryS
I hope the Dems keep the pressure going. A stimulus bill in no way should include half a trillion dollars for Mnuchin to hand out to corporations that do not even pay taxes. Not to mention the gall of handing Trump whatever inflated figure he is requesting. This is our money. We lowly people pay the taxes. The rich do not. Now they want us to throw them some more of our money while we all lose jobs and all that goes with that. And then we have to pay for it. ENOUGH. I hope the Dems hang on. This… Read more »