Someday They're Going To Write Books About This!

By Tyler Durden  Sat, 05/09/2020 - 15:40

Authored by Bruce Wilds via Advancing Time blog,

What is occurring today is absolutely mind-boggling. Someday they are going to write books about this! While there have been some messed up financial conundrums over the years none rival the current situation now before us. The dilemma before us is a fast-moving enigma wrapped in a gossamer cloak.

Not only are the players that make up the global political-financial complex busy buying up bad debt, stocks, and bailing out those they deem too big to fail, they have destroyed the concept of real interest on loans. They have trampled all over true price discovery the basis of a free market.

The budget forecast be damned, its full speed ahead. The only justification we need is saying it will be far worse if we do nothing. The bungled response of a delusional government so obsessed with the idea that by simply passing legislation they can make things happen should not be overlooked.

The Paycheck Protection Program or PPP was originally funded with $350 billion but the money was soon gone. Of the thirty million small businesses in America, only 1.7 million received money from the 2.3 trillion dollar aid package passed to help sustain America during this difficult time.

This resulted in more funding but still, the last report I saw indicated only around 13% of the, less than half the businesses that were eligible, were approved before the fund was again depleted and 60% of these had yet to receive any money. 

Just as poorly handled was rapidly getting out money promised to individuals and creating a system where many people could receive more money by collecting unemployment than returning to work. The problem is that when all is said and done, large businesses with access to cheap capital will again be the winners and the big losers are the middle-class, small businesses, and social mobility.

It has become difficult to comprehend the size of the failure the political-financial complex has designed. This is partly because stocks have continued to soar with every announcement of rising unemployment and even as businesses continue to fail or file for bankruptcy. Bad news is not good news.

The sick idea that poor spending habits are the answer to achieving a faster-growing economy is absurd and twisted. This is not new, politicians seem unable to grasp the fact economic growth does not necessarily bring about economic strength or long-term prosperity. Following 9-11 I remember then-President George Bush encouraging and pleading for Americans to rush out and buy more junk.

In a world where central banks are pouring out money to stimulate an economy eager to die the question many people are asking is will it work? Until now it appears these actions are only postponing the inevitable.

To continue reading, please go to the original article here: 

https://www.zerohedge.com/markets/someday-theyre-going-write-books-about