It goes without saying, Coronavirus is impacting us all. Is it the same for the stock market collapse?
We’ve seen it all before. People at the stock exchanges in New York with their heads in their hands. Strange images of bears roaring. Chart after chart, nicely lit up in red to indicate that things are not bueno.
Nothing is different this time, well except that the stock exchange workers now have to work from home rather than risking infection. Just imagine them sitting on their couches in their underwear – but still holding their heads in their hands.
This impacts all of us
Another familiar sight in these times, is the commentary from politicians and the media.
“A hit to the stock market is a hit to us all” goes the saying.
Add in the fact that Donald Trump, has pinned his success as a President to a rising stock market. Then the problem for the US government becomes clearer.
But how much is the impact felt by the average American, who might not even own any stocks? Compared with the CEOs and Execs who really need that extra $10m compensation cheque for their next beach house – maybe not quite as much?
The Government to the rescue
With so much on the line, the US Government decided to step in with a massive relief package, valued at $2 trillion. Trump, the white knight of the story, rides in to save the day.
There’s a re-election campaign to win in November, and an economy to be kept from failure – if he’s to stand a chance.
This relief package, unlike previous ones, was actually created with ordinary people in mind. $1,200 cheques, unemployment compensation at $600 a week, protection against mass firings and small business support.
Trump used major tax cuts and deregulation to make his friends in big businesses happy. But he managed to convince working class Americans that it would benefit them (genius).
Trickle Down Economics proved itself to be a pipe dream once again. Executives took this gift of money and paid it out to investors and themselves.
Now, with less tax revenues and huge national debt – Trump is desperately trying to win over ordinary Americans for re-election and save the economy.
How? By lining their pockets with legislation that spends money faster than any before in history.
How long can it last?
The Daily Bundle reported on Trump’s hope for an Easter return to normality, even though the virus continues to spread faster and faster.
Experts were quick to call bullshit and The Don had to eat his words, with an extension of guidelines until April 30th.
But many believe that even that is too early a prediction. Death estimations and economic outlooks are getting worse and worse by the day.
Band aid over a bullet hole
At the Daily Bundle, we don’t pretend to know everything. We just like to say things as we see them.
And the stimulus package made to save the stock market seems like a small patch trying to cover a large Trump-sized hole.
If economic activity can’t pick back up soon because of Covid-19, there’s not much that the government can do to help.
But back to the title of this article, are we all doomed?
Hard to say. About half of Americans own some stocks – but the average value they hold is low. The bigger impact will be the economy overall, but still nobody knows how bad it can really get.
The one good news story is, the mega rich in society will make it through this – so you can stop worrying.
(Except maybe Trump, if you consider him mega rich.)