Trump Seeks $850 Billion Stimulus Package, Stocks Rally
Everyone is seeking money and Trump is willing to dish it out to the tune of an $850 Billion Stimulus Package.
U.S. Treasury Secretary Steven Mnuchin is pitching Senate Republicans on a roughly $850 billion economic stimulus package, according to two people familiar with the matter, as the Trump administration works to craft more legislation to cushion the economic blow of the coronavirus pandemic.
Democrats have proposed their own $750 billion package for the third phase of the response, and other lawmakers have started floating a variety of measures, including giving $1,000 in cash to every American.
The Trump administration’s stimulus plan will include roughly $50 billion for the airline industry, according to the people, as well as billions of dollars in general stimulus that could include a payroll tax cut.
The details remain in flux and even the top-line $850 billion figure could change, but Mr. Mnuchin is expected to discuss a number of options with Republicans, including a refundable tax credit to help people struggling with the economic effects of the outbreak and additional assistance for small businesses.
Boeing Wants a Bailout
Note that airlines spent U.S. Airlines Spent 96% of Free Cash Flow on Buybacks.
Casinos Want a Bailout
I had a few choice words for that one.
Stock market Likes Bailouts
The stock market likes bailouts.
But let's see what it thinks in a few days with an eye on Bear Market Support Levels.
Mike "Mish" Shedlock