A Stimulus Plan Seems Very Far Away. Why the Stock Market Rose Anyway.

[NewsFeeder]

A Stimulus Plan Seems Very Far Away. Why the Stock Market Rose Anyway.

“So maybe, just maybe, Mr. Market is looking at the ‘fiscal cliff’ as an unnecessary cause for worry,” one strategist writes.

https://finance.yahoo.com/m/66a0eac...dc7/a-stimulus-plan-seems-very.html?.tsrc=rss

 

[Bullitt]

I somewhat agree here. Unlike the inflation believers, I think Americans are caught in a liquidity trap. There are more dollars to spend on things since we aren't paying for as much gas or extracurricular events. Things such as get-togethers, travel, sports, restaurants, entertainment, are not available for purchase due to shutdowns.

Aging populations are deflationary. So are younger minimalist ones that can't take that trip to a Costa Rican volcano to find that perfect instagram pic.

David Rosenberg of Rosenberg Research argues that investors have, perhaps, gotten used to politicians going down to the wire to get deals done. Then there’s the fact that Americans have been saving like mad since the coronavirus crisis began and were sitting on $3.4 trillion at the end of June. “So maybe, just maybe, Mr. Market is looking at the ‘fiscal cliff’ as an unnecessary cause for worry,” Rosenberg writes.

 

[Bullitt]

There's a lot of talk about zombie companies being kept alive by federal bond buying but the irony is that any additional stimulus is being withheld largely over the US postal service.

Hey Newman, if you could get a package delivered by 1. Amazon, 2. UPS, 3. USPS, who would you pick as your top choice? How about your top two?

 

[Bullitt]

The supreme court vacancy is more important than some stimulus package to ramp stock markets "back to even". Then what?

Agree with below. Let's not forget the forced social security deferral. Seems to be a trend nowadays - just force people to do things.

Federal Reserve Bank of St. Louis President James Bullard said the U.S. economy has enough momentum to continue its recovery from the coronavirus slump even if Congress fails to pass additional taxpayer support.

https://www.bloomberg.com/news/arti...s-u-s-has-already-delivered-enough-fiscal-aid