After breaking hard from the gate, all major markets gained tremendously today, with the DJIA achieving a record one-day point gain of 2,112.98, reaching 20,704.91at closing. Negotiations continued throughout the day, with Senate members on both sides saying that the differences on a coronavirus economic relief package are simple enough to be hammered out. Democrats have been railing on Republicans for building a typical “trickle-down” bill around the interests of big corporations and providing plenty of available money for the corporations to do what they have the greatest propensity to do with available cash, stock buybacks. Democrats want assurances for workers arguing that the buyback process inflates stock values and triggers executive bonuses, but does nothing for workers who find themselves at the bottom of the corporate food chain.
Realizing the urgency, even President Trump was motivated yesterday to encourage Senators to focus on a viable economic relief package and get it done. However, Democrats are demanding accountability for the funds and Green concessions from airlines and cruise lines. Opportunities to hold the feet of huge corporations to the fire are few and far between, say Democrats who are reluctant to give without getting Green and worker assurances.
Republicans have included $500 billion for large corporations with what Democrats are calling nothing more than a promise of “oversight” to the spending and at market close, Democrats still weren’t biting. Democrats want strings attached to the backstop loans, ensuring that taxpayer dollars can’t be used for stock buybacks and employees of those companies get protection from being laid off. With Rand Paul coming down with the virus himself and four Republican colleagues out due to potential exposure and now under self-quarantine, Democrats hold more clout than usual, particularly because it takes 60% to vote in favor.
Regardless of an agreement being reached today or not, another smaller bill is waiting in the wings. Some of the loose ends could be pushed off to that next round, but the rising unemployment numbers and general recession all but assured by this pandemic have the power to prevent a major recovery from being even remotely quick, regardless. There is no shortage of confusion, but President Trump tweeted on Sunday that, “WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF.” And yesterday he urged Congress to ditch the Green Deal “nonsense” and approve the GOP relief package. Gold and other precious metals remain one of the best and most time-tested ways to protect assets, portfolios and family legacies. It’s far too early to imagine this economic downturn is over and the recovery could take much longer than in 2008. Don’t become a victim of this economic pandemic. Call the experts at American Bullion now, at (800) 653-GOLD (4653).
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