THREAD: The Nasdaq is now 1% away from turning to positive territory for 2020.
There has never been a clearer moment to see how the stock market is NOT the economy.
Why does this matter & why is it concerning?
There has never been a clearer moment to see how the stock market is NOT the economy.
Why does this matter & why is it concerning?
Millions of Americans & American businesses are facing real economic hardship.
Given President Trump’s focus on markets, he could absolutely use GREEN MARKETS as his green light to say “the economy is ok” and cut off more economic support - stimulus checks etc.
Given President Trump’s focus on markets, he could absolutely use GREEN MARKETS as his green light to say “the economy is ok” and cut off more economic support - stimulus checks etc.
Trump will love these numbers & most likely use this as a reason to leave many without.
But remember: One of the reasons the markets are still moving is the Fed.
The Treasury announced it will borrow $2.999T this quarter to fund stimulus measures & offset lost tax revenue.
But remember: One of the reasons the markets are still moving is the Fed.
The Treasury announced it will borrow $2.999T this quarter to fund stimulus measures & offset lost tax revenue.
This is almost 6x the last record - $530B in ‘08/worst point in the financial crisis.
The Fed is doing this BECAUSE we are in a devastating crisis — and that support serves investors & Trump loves happy investors.
The Fed is doing this BECAUSE we are in a devastating crisis — and that support serves investors & Trump loves happy investors.
But we are NOT ok.
- 30M+ Americans lost their jobs in the last 6 weeks (with approx 10M more likely eligible and unable to file)
- We are on track for monthly double digit unemployment
- 30M+ Americans lost their jobs in the last 6 weeks (with approx 10M more likely eligible and unable to file)
- We are on track for monthly double digit unemployment
- Despite America re-opening, infection rates aren’t declining & big business lobby is seeking “liability shields” which would protect them from litigation from customers & employees
- Those making big decisions on “going back to work” are doing it from home offices, where they‘ll stay for months.
- At the same time, our labor force, largely made up of more vulnerable Americans, many who don’t have good healthcare, childcare & without safe places to quarantine will use public transport to go back to work & get the economic engine going...potentially at their own detriment.
.@salesforce CEO Marc @Benioff said earlier today, CARES ACT business support was just phase 1.
In order for our businesses to safely re-configure and re-open in a safe & sustainable way, the government must offer significantly more financial support to “re-open America.”
In order for our businesses to safely re-configure and re-open in a safe & sustainable way, the government must offer significantly more financial support to “re-open America.”
