America’s Jobless Crisis Goes Nuclear. Fed Leaps In With $2.3 Trillion In New Lending

America’s Jobless Crisis Goes Nuclear. Fed Leaps In With $2.3 Trillion In New Lending

The US got another stark reminder of just how dire the economic situation really is in the world's largest economy on Thursday, as jobless claims surged for a third consecutive week. 6.61 million Americans filed for unemployment benefits in the week through April 4, more than the 5.5 million consensus was expecting. The prior week was revised up to 6.9 million. That brings the three-week total to an astounding 16.8 million. Suffice to say this counts as an existential economic crisis on pa
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21 thoughts on “America’s Jobless Crisis Goes Nuclear. Fed Leaps In With $2.3 Trillion In New Lending

  1. $2TR is, what, about 1 month of US payrolls? If small/medium biz representing a third of US payrolls get the funds, that’s 3 months of those firms’ payrolls.

    It is unclear to me if these loans are forgivable. I assume that even if they are not, they eventually will be.

    1. Absolutely. There is no free-market setting of prices anymore with all this intervention. Buy #stonks covers everything.

  2. If I am looking at the correct data, looks like Germany is printing way less than USA…..I am not surprised- maybe Germans remember what hyper inflation does to your country?

    USA printing massively only works if other major economies do the same.

  3. “That seems like a lot of obfuscation for no readily apparent purpose.” Maybe they get a fee for doing that work in an exchange that helps with their problems from lower interest rates?

  4. “for no readily apparent purpose.” Boy, how are banks supposed to make a nice profit if they don’t “intermediate”? We do not want to cut out Wall Street from this deluge of money, right?

  5. Makes much more sense just to send a check and write down the loans. Fastest and most efficient. Moral hazards, misallocating capital are all second order concerns at this point. The market is broken and it cannot really be fixed in any traditional sense. What a surprise that Draghi understood the breadth and depth of the crisis better than anyone.

    1. Something tells me this is just cracking the taps open… Full Throttle should at least involve UBI and Universal Healthcare.

    2. Not even close to MMT –this is about putting in flooring to keep credit markets from collapsing and a contagion of business failures. Buying municipal bonds not only stabilizes operational budgets but implies there will be support for state and local pension funds many of which were underfunded and depended upon unrealistic ROI that were baked into state budgets especially. Illinois Pension Fund was near junk BEFORE Covid-19 was allowed to spread indiscriminately for two months.

      1. Why isn’t this an example of MMT in practice. MMT only states that govs with sovereign currencies aren’t constrained by taxes to pay for it.
        You don’t hear one Republican now screaming “who’s going to pay for this??” because they know that no one really has to.
        You can talk about inflation as a possible problem, but I’m merely addressing your comment that this is not even close to MMT.

        Looks close to MMT to me

        1. When Jerome walks over to the discount window with his freshly minted 10 trillion dollar coin and gently says “I would like to make a deposit, please,” just let me know.

  6. Explaining this is a simplifiers dream……..When all the system has done for the last decade is throw money around it seems apparent that what all that is inevitably happening is happening by design… The where does it lead part and the unintended consequences are going to be the challenge and 20—20 hindsight in liberal doses will be employed …It is obvious we can never work out of this Fox hole using a deck of 52 cards….I think Geopolitics Rules finally !!!!!

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