Trump tripled down on Monday afternoon, stating he was strongly considering sending the US back to work as much as possible:
You think it’s just the coronavirus that kills people? This total economic shutdown will kill people … You look at automobile accidents, which are far greater than what we’re talking about, it doesn’t mean we’re talking about telling people not to drive cars.
When asked about time-frame, Trump was very clear:
I’m not looking at months, I can tell you right now.
While Dow futures are taking it as a positive at the moment, it; s almost impossible to balance the risks of coronavirus.
One the one hand, it will be impossible to manage a functioning economy if the coronavirus is filling hospitals to breaking point
. No-one is going to fly or take a cruise; It does not matter what the government says.
On the other hand, positive economic effects could be achieved for what is expected to be a whopping 2.5 million more unemployed Americans . Discontentment is brewing, and as the White House has indicated, economic vibrancy is linked to health and happiness in the United States.
Investors will need to see an intricate tight -rope being walked by the Trump administration, as they secure at-risk citizens while allowing maximum possible employment.
It’s a boom-bust option for the president, but With Biden enjoying a seven-point lead in the election polls, Trump needs to rev up the economy and stock market to stand a chance in November.
Dow Stocks: Boeing Is In The Way of a Stimulus Package
For now, we still have no agreement in the Senate .
Nordea Asset Management economist Sebastian Galy told CCN.com he believes the hold-up largely reflects the Democrats’ desire to push home their political advantage: The problem from a Democratic point of view is that the economy needs to be weak enough during the US election, yet they must be perceived as having saved the economy and key constituents to win such an election, particularly amongst blue worker that had preferred Donald Trump.
Corporate bailouts are a toxic topic, and Democrats’ will be desperate to avoid being accused of supporting them . Particularly for a company like Boeing (NYSE: BA), which spent a large amount of free-cash flow on stock buybacks and are now staring at bankruptcy.
All signs point to a brighter open for the Dow Jones on Tuesday, with volatility all but assured if there is finally movement on Capitol Hill.
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