On the heels of more than three million new unemployment claims, Treasury Secretary Steven Mnuchin calls in to CNBC for a phone interview to discuss the coronavirus relief bill that passed last night.
Mnuchin was asked about his reaction to seeing the 3.28 million new unemployment claims reported for the past week during the interview. Mnuchin said, “To be honest, I think these numbers right now aren’t relevant whether they’re bigger or shorter in the short term.” WATCH:
Yikes, the text of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) has been released (full pdf below). The Senate took H.R.748 stripped it out, and replaced the text with this bill. The full 50 page senate record of the activity is available here.
Digging in now. However, at first blush the size of the spending seems to be a considerable state budget deficit bailout [similar to how Obamacare removed the healthcare pension liabilities from unions]. Here’s the BILL:
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Share your thoughts in the comment section….
Think about this… How weak and tenuous does a corporate financial position need to be such that being closed for one week means informing all nationwide landlords of your inability to pay the rent next week? Consider this example:
CALIFORNIA – The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis.
[…] Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.” The letter says that the company hopes to resume paying rent as soon as possible.
Washington DC Mayor Muriel Bowser closes the nation’s capital until April 25th, effectively closing all public gatherings for one month. [Order pdf Here]
There is a certain aspect to dèjá-vu showing up on the horizon… Welcome to an economic civil war. But first, the latest details.
WASHINGTON DC – The intent of the Order is to temporarily cease all non-essential business activities, including tour guides and touring services; gyms, health clubs, spas, and massage establishments; theaters, auditoriums, and other places of large gatherings; nightclubs; hair, nail, and tanning salons and barbershops; tattoo parlors; sales not involved in essential services; retail clothing stores; and professional services not devoted to assisting essential business operations.
The Order goes into effect on March 25, 2020, at 10 pm, through April 24, 2020 (link)
On the horizon it appears the state and regional shutdowns are going to mirror the shutdowns from Obama’s infamous sequester-fiasco from the spring of 2013. That looks like the road-map that will be followed as the coronavirus issue starts to level-off.
Cincinnati Ohio joins a growing list of cities who have modified their police enforcement efforts in response to the coronavirus effort. Cincinnati is suspending all calls for police officers when the suspect is no longer present.
The police will no longer respond to property crimes, robbery, burglary, theft, and assault without hospitalization, amid a new set of law enforcement priorities.
OHIO – […] Police will no longer respond to assault reports, unless a suspect is still present or the victim requires medical attention, breaking and entering reports unless a suspect is still present, menacing reports “unless suspect is expected or threatens to return or is part of the elements of domestic violence” or theft reports “where there is no possibility of immediate apprehension.” (link)
Gee, what could go wrong?…
With caution applied, Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer announced around 2:00am ET a deal had been reached for the nearly $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) bill.
The final language for “HR.748” (stripped and newly assembled) will take place today. Looks like the senate is using an old bill, previously passed by the House, so the House can deem and pass, without formally reconvening. There are ten republican amendments. Speaking from the floor, both McConnell and Schumer made remarks describing the bill.
Thank you Greg Abbott. This is the first smart move by a state leader recognizing the realities of the system at hand. Texas Governor Greg Abbott has signed a waiver allowing restaurants to sell their bulk food directly to retail customers.
Amid all of the reactionary decisions by elected officials, this is a smart, and temporary move that can take pressure off the retail supply chain. Hopefully others will follow.
Leadership is often about recognizing the unique landscape and taking ‘outside the box’ action in response to current conditions. Greg Abbott recognizes there are two distinctly different supply-chains, and this modification can open one distribution valve.
First they released 1,700 inmates. Then the LA Sheriff shut down all the gun stores, saying they were not essential services…. Now LA Mayor Garcetti announces he will shut down water and electricity for anyone who attempts to defy the stay at home edicts.
…”The easiest way to avoid a visit” from the LA storm-troopers “is to follow the rules”… “Your behavior can save a life” Garcetti said, “And that life could be yours.”…
The official “neighborhood prosecutors” have been assigned. The LA Directorate of Coronavirus Compliance has now been activated. Choose carefully comrade citizen. That’s a nice place you’ve got there, it’d be a shame if anything happened to it..
Los Angeles – […] He reminded young people that the virus can hit them too, urging them to stay at home and practice social distancing.
“Your behavior can save a life and take a life,” Garcetti said. “And that life could be yours.”
The mayor addressed President Trump’s remarks from earlier Tuesday about having the nation “opened up and just raring to go by Easter.” Garcetti said he didn’t think L.A. would be back to normal “in that short time.”
[Transcript] – THE PRESIDENT: Thank you, Bill.
Q Unusual circumstances, where you’re trying to communicate with the American people and we’re trying to maybe bring the American people a little closer to you and get some answers.
THE PRESIDENT: Well, that’s true.
Q To you, Mr. President, when was the moment that you thought, “We got to move on this”?
THE PRESIDENT: Well, I think when I started seeing and reading about China, and seeing what was going on in China — Wuhan, specifically. It seemed to come mostly out of there — that area, the province.
And when I saw that, and I saw the kind of death they were, you know, talking about on television, in the papers, and I started reading a lot about it. And, really, when I had to make a decision: Do I stop people from China and specifically that area — but from China — to come into the country? And everybody was against it. Almost everybody, I would say, was just absolutely against it. We’ve never done it before. We never made a decision like that.
National Economic Council Director Larry Kudlow explains the overall picture of the legislative package as coordinated by Treasury Secretary Steven Mnuchin, and the White House economic team. The overall financial package is $6 trillion. $4 trillion of that amount is federal reserve lending authority in case needed. $2 trillion is direct economic assistance.
Democrats are still attempting to add their K-Street pet projects (foreign aid grants, performing arts contributions, union payoffs, election modifications, funds to expand abortion services, subsidies for wind farms, restrictions on cow flatulence, funds for Hollywood productions, airline emissions, turtle training classes and various social engineering topics) to the spending package. That battle continues….