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Mnuchin requests Fed return unused stimulus money

Spartans9312

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Nov 11, 2004
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Money that Powell and Fink have used to artificially boost the market, making Trump's declarations that he was the sole person responsible for its performance null.
 
In political philosophy vernacular, this is called taking your ball and going home.
Trump's temper has flared in recent weeks with the Fed who has been seen sending the market to all time highs in the face of COVID lockdown, what he sees as election impropriety and high unemployment. This was obviously the reason stimulus has been put back on the table so soon after the election, hoping to head off Mnuchin's threat, but it's unlikely Trump would sign off on a package. I expect McConnell and the GOP to dig in with a low $500-700 billion deal and force the Dems to swallow it.
 
Meh. It was money not being utilized and the program still is in effect until Dec. 31. If Biden wants it back, then it can start up again Jan 22.
I think sitting in an account not doing anything is exactly how emergency funds are to be utilized. It was doing exactly what it was supposed to do, be available for an emergency.
 
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I think sitting in an account not doing anything is exactly how emergency funds are to be utilized. It was doing exactly what it was supposed to do, be available for an emergency.

Yeah, no. It was money intended to stimulate the economy in the face of pressure caused by COVID, if it is sitting in accounts not being used, then it is not stimulating anything. Better to recoup that unused money as apparently whatever it was earmarked for did not need it and redirect it somewhere it can be used.
 
Yeah, no. It was money intended to stimulate the economy in the face of pressure caused by COVID, if it is sitting in accounts not being used, then it is not stimulating anything. Better to recoup that unused money as apparently whatever it was earmarked for did not need it and redirect it somewhere it can be used.

The money is needed and is still being distributed. This isn't easy. Take utility and rental assistance for an example. Care Act funding through city government is being distributed to people behind in rent and utility payments. The process for application and approval is messy and constantly changing. People in crisis are waiting for those applications to be approved. Property owners are waiting for the past rent payments to be made whole. If those funds are not fully distributed, utilities will be shut off, people will be evicted, and those unpaid bills will never be recovered. That will be a double hit on our economy. It's a stupid move to pull back funds that are in process of being distributed.
 
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The money is needed and is still being distributed. This isn't easy. Take utility and rental assistance for an example. Care Act funding through city government is being distributed to people behind in rent and utility payments. The process for application and approval is messy and constantly changing. People in crisis are waiting for those applications to be approved. Property owners are waiting for the past rent payments to be made whole. If those funds are not fully distributed, utilities will be shut off, people will be evicted, and those unpaid bills will never be recovered. That will be a double hit on our economy. It's a stupid move to pull back funds that are in process of being distributed.

Do we even know that is what these funds are? I did not read through the article and am basically saying if money is not used, it should be returned.

As to your other point, people who are for limited government would point to something like this where it takes half a year to get money where it is needed as an indictment on bureaucracy...
 
Yeah, no. It was money intended to stimulate the economy in the face of pressure caused by COVID, if it is sitting in accounts not being used, then it is not stimulating anything. Better to recoup that unused money as apparently whatever it was earmarked for did not need it and redirect it somewhere it can be used.

Hmm, care to explain all that to the Ded. Here is what they said:

“The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy,” the Fed said.​
I see the words "emergency" and "backstop" in that. https://www.politico.com/news/2020/11/19/mnuchin-cutting-coronavirus-aid-economy-438487
 
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Money that Powell and Fink have used to artificially boost the market, making Trump's declarations that he was the sole person responsible for its performance null.
If that's the case, pretty soon Trump can take credit all by himself for any drastic downturn in the market.
 
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Do we even know that is what these funds are? I did not read through the article and am basically saying if money is not used, it should be returned.

As to your other point, people who are for limited government would point to something like this where it takes half a year to get money where it is needed as an indictment on bureaucracy...
Why? Is there some other government program not paying its bills because these funds are sitting in this account? What's the point of moving them other than to make it more difficult to use them if needed between now and the end of the year?
 
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Why? Is there some other government program not paying its bills because these funds are sitting in this account? What's the point of moving them other than to make it more difficult to use them if needed between now and the end of the year?

I am thinking more of rerouting the money. Honestly, everything for the stimulus was borrowed, so it is extra that has to be paid at some point down the road. I am just saying that if it is just sitting there doing nothing, that taking the money back and putting it into something that maybe requires more funding might be a worthwhile thing to look at.

I don't know how much we are talking, but maybe tack it on any new stimulus package to help with another COVID check or whatever.
 
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This is all a bunch of dumb shit. The Fed isn't using these funds... and where the market is right now, is very unlikely to ever need them.

These are programs to stabilize the financial system, and the financial system is fine. There are no liquidy issues in the credit markets.

But even if the Fed did need money.....A Biden Treasury Sect could immediately make them available again.

This is a no news story.
 
Hmm, care to explain all that to the Ded. Here is what they said:

“The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy,” the Fed said.​
I see the words "emergency" and "backstop" in that. https://www.politico.com/news/2020/11/19/mnuchin-cutting-coronavirus-aid-economy-438487


This was never 'stimulus' money... it was just extra leeway for the Fed to backstop the financial system... if it was needed. Considering equity prices are at record highs and corporate credit yields are generally quite low, I really foresee no need for this money.

But the Fed Reserve are bankers, and no banker likes liquidity taken from them.


Congress should do its job and pass appropriate real fiscal stimulus. Not passing the buck to the Fed, which has always been a dubious way to support the economy.
 
Huh? The are expiring on Dec 31, 2020. He isn't calling them now. Five of the programs are just not being renewed for an additional 90 days.

This is all a bunch of dumb shit. The Fed isn't using these funds... and where the market is right now, is very unlikely to ever need them.

These are programs to stabilize the financial system, and the financial system is fine. There are no liquidy issues in the credit markets.

But even if the Fed did need money.....A Biden Treasury Sect could immediately make them available again.

This is a no news story.
I'll be the first to admit I don't understand any of this. I was just curious about Crazy's suggestion that the money could be better used somewhere else. My understanding of how money works in the federal government makes it difficult to follow that line of reasoning.

But again, I don't know anything about this, so I probably should have just stayed quiet.
 
I'll be the first to admit I don't understand any of this. I was just curious about Crazy's suggestion that the money could be better used somewhere else. My understanding of how money works in the federal government makes it difficult to follow that line of reasoning.

But again, I don't know anything about this, so I probably should have just stayed quiet.

What the Fed does in general is rather difficult for most anyone to really understand. When they get into these extraordinary programs it's even more difficult.

There isn't really more money to do anything with. Barring new Congressional legislation.... and it's not like Congress cared about waiting around for this found money.

It's a nothing story. Why the markets totally shrugged it off.
 
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So it appears the plan is to take money and move it to locations Biden/Yellen cannot get to. More landmines.

That sounds like something Trump and his minions are likely to do. What a patriotic bunch we have!
 
That sounds like something Trump and his minions are likely to do. What a patriotic bunch we have!
The only slightly non-negative spin at all that I can see on this is that Trump and McConnell and Mnuchin were not ever going to spend this money on those kinds of stimulus programs anyway.

We need financial (and medical) measures right now, but Trump etc. were not ever going to give them to the country. While Mnuchin's request will delay Biden actions next year, that request did not take anything away from us that we were ever going to get from Trump.
 
So it appears the plan is to take money and move it to locations Biden/Yellen cannot get to. More landmines.

Ah. So partisan hackery was the explanation all along.
 
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