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A large portion of the stimulus is going to publicly traded companies, so that would have the effect of propping up stocks that may otherwise trend towards zero
by kitotik 6y ago
A large portion of the stimulus is going to publicly traded companies, so that would have the effect of propping up stocks that may otherwise trend towards zero.
- yborg 6y agoThere are more or less no limits on the stimulus money, so corporations that have issued debt to buy back shares can use it to retire that debt and then issue even more debt in the current hyper-low rate environment. It's essentially a way for companies to transfer the money into the hands of their executive management.
- kitotik 6y agoI had a very hard time understanding why this setup was so widely accepted during the last corporate welfare program in 2008/2009 when the amount was in the $500B range. I’m now at a complete loss as to why there isn’t more of an outcry when it’s in the $3T range.
- fallingfrog 6y agoIt’s not being widely reported. Saying that all our troubles are due to Coronavirus allows for a lot to be covered up.
- newshorts 6y agoBecause most people don’t really understand it, or think it’s too complicated to understand