How Congress will keep an eye on $2 trillion in coronavirus money

2nd April 2020

Here is how those protections are supposed to work: 1) The Congressional Oversight Commission Who’s in charge: Congress’ main oversight tool is a new, five-member panel that is charged with monitoring a $500 billion fund for distressed industries operated by Mnuchin, in partnership with the Federal Reserve. The four top congressional leaders each get an […]

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Economists pan Pelosi’s proposal to lift cap on state and local tax deductions in next bailout

1st April 2020

Such a change would definitely be a windfall mostly for top earners, experts say. And lifting the limits retroactively, as Pelosi has suggested, would only make matters worse, while not offering many benefits to state governments that are also getting hammered by the current crisis. “This is not a good idea,” said Michael Linden, executive […]

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Big banks brace for coronavirus-related onslaught

31st March 2020

“You’re going to have massive defaults as the economy turns down, and a massive amount of dumping of the worst debt as certain investment vehicles like mutual funds are getting out of it,” said Dennis Kelleher, who heads the financial regulation advocacy group Better Markets. “You put those two things together, and there is an […]

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Fears mount of a coronavirus-induced depression

30th March 2020

“The longer it takes, the deeper the ongoing slowdown will be,” said Pantheon Macroeconomics chief economist Ian Shepherdson. “Fed data shows that 40 percent of U.S. households would not be able to come up with $400 for an emergency expense, and data from 2019 shows that 53 percent of U.S. households don’t have any emergency […]

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‘Just damage containment’: Cost of the coronavirus shutdown keeps rising

28th March 2020

“The Federal Reserve and Congress are helping avert for now a massive self-feeding economic and financial decline that threatens a devastating combination of a 1930s-like depression and a 2008-like global financial crisis. That’s the good news,” said Mohamed A. El-Erian, chief economic advisor at Allianz. “There will definitely be a need for a phase four.” […]

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House passes $2 trillion coronavirus package — but not without last-minute drama

27th March 2020

The eleventh-hour drama in the House comes after days of frenzied negotiations among Senate leaders to secure a deal and an intense behind-the-scenes lobbying effort by House leaders to ensure none of their members tried to delay the bill. “People will die today as a result of this virus,” House Majority Leader Steny Hoyer (D-Md.) […]

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How the $2 trillion deal came together — and nearly fell apart

26th March 2020

Ten days later, the price tag for the Senate’s coronavirus economic rescue package has ballooned to more than $2 trillion, twice what Kudlow initially suggested, making it by far the most expensive spending bill in history. The legislation — which passed the Senate by a unanimous, 96-0 vote late Wednesday and is expected to easily […]

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‘Have We Learned Nothing?’ – POLITICO

25th March 2020

The 2009 stimulus did include down payments on several of Obama’s long-range policy priorities, including education reform, scientific research, infrastructure, and yes, green energy, which received a whopping $90 billion that helped create booms in wind, solar, electric vehicles and LED lighting. The current House bill takes a different approach, calling for modest spending increases […]

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The unthinkable: Is it time to shut down the stock market?

24th March 2020

The Trump administration and regulators have tried to tamp down speculation that trading should be shut down temporarily until the implications of the crisis become clearer, arguing that the markets are functioning as they should amid the regular trading halts, known as “circuit breakers,” sparked by dramatic drops in stock prices. “We don’t want to […]

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Coronavirus upends the battle for the House

23rd March 2020

In a recent memo sent to House Republicans, Tom Emmer, chairman of the National Republican Congressional Committee, accused Democrats of politicizing the novel coronavirus and warned his caucus not to do the same. “You should not fundraise off coronavirus directly as the Democrats have done,” the Minnesota representative wrote. “Be sensitive that your donors may […]

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