President Donald Trump will seek a $1 trillion aid package from Congress this week as part of its effort to cushion the economic blow that is almost certain to hit the U.S. economy in the coming months. Japan is reported to be discussing significant stimulus for its economy, which is also being supported by trillions in liquidity from the Bank of Japan, while Britain unveiled a near $500 billion package of loan guarantees yesterday.
Jim Cramer weighs in on the plan.
Watch the video above for more.
And you can tune in to Jim's conference call at actionalertsplus.com at 11:45 AM this morning. Jim, this stimulus package of $1 trillion... Is this going to be enough for the market?
Or does Wall Street need to see more?
No. What's enough... I keep thinking what Dr. Fauci said yesterday, when people said, "Is it going to be 45 days?" And he was just saying, "Look. If I say 45 days, and it goes 47 days, whatever, I'm going to be wrong." We're going to look back in history, and we're going to say either, "Why didn't people think bigger? Because what it led to were consequences that have not been unleashed in this country in a very long time." No one's going to say, "I cannot believe we thought so big for something that was so small." And when you do it that way, when you think of it that way, what happens is, if the government invests in all these industries and we solve the virus, the government's going to clean up.
I mean, one of the new ones, my friend Matt Horween, my writing partner, just suggested... We have gigantic sums in Social Security, in Medicare. It's all invested. But, well, let's divert some of that into corporates, into corporate bonds if we have to, or even into equity. Other countries do that. Why can't we do that? And the answer, Katherine, is very interesting. The reason why we can't do that is this. We're not willing to think big enough. And when you're not willing to think big enough, you make mistakes.
I mean, I always come back to General Marshall because General Marshall is one of my heroes. FDR goes around the room about what's needed. We had 17th largest standing army, two years before we had to beat, along with the Russians, the Germans and the Japanese. And everyone just said, "We're fine." The Army says, "We're fine." This says... Everyone says, "We're fine," because they're afraid of FDR. And he says to the President, "We need as many planes as we can get. We need as many bombers as we can get. We need aircraft carrier. We need everything we can." He didn't put a number on it. He was then addressed by FDR, and FDR called him by his first name, George. And he made it clear after that that his name was General Marshall. And he was not going to be called George.
We're in that moment where there's got to be someone in that room who says, "Mr. President, I don't care what you say. This is what we need," and is not afraid of being fired. Because I think there's too much tyranny in the White House. You need someone like a General Marshall, who says, "You know what? I'm going to speak up and say what's needed. The worst that happens is I'm fired." Because what we need is a Marshall approach to World War II and a Marshall Plan after World War II. Because there's a man who wasn't afraid to think big.
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