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There Will Be Scars.
"Apparently, investors have a great deal of confidence in the remedial powers of mass injections of
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One item comes to mind that has not been mentioned.is….future income tax receipts by the IRS……Could be a subject for a future discussion but a definite negative factor when CFO’s start to calculate loss carry forwards. Not sure if anyone cares about deficits anymore after what we have seen lately !!!!
It stands to reason that with the shutdown lasting a month snd most Americans lacking even $1k of savings…. $1200 is not going to cut it even if everyone gets their jobs back in May…. which they won’t… without serious debt relief programs and direct payments to citizens this is going to cripple the consumption economy in perpetuity. I mean it wasn’t like we got wage growth even back when things were going great.
I hadn’t actually thought much about next year’s problem with receipts. For the working middle class, millions will undoubtedly have big gaps in this year’s income and many won’t get those expected January bonuses. Companies will find every way they can to shed taxable income through non-cash charges, crushing next year’s receipts, meager as they already are after the big tax cuts. What will they do with all that windfall. not give it to their workforce, that’s for sure. And remember, all these government payments are loans or non-revenue grants, all tax-free.