Author Topic: Implications of the Blue Wave  (Read 1737 times)

mattee2264

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Re: Implications of the Blue Wave
« Reply #10 on: January 07, 2021, 09:17:49 AM »
 Are there any fiscally conservative segments of the Democrat Party? It seems like one thing they can all seem to be able to get behind is more bail-outs and hand-outs.

 Aside from the $2,000 checks I've read speculations of a further stimulus early this year anywhere between $600B & $2-3TR.

 I kinda feel Mitch has a point and it is ridiculous giving checks to middle class people/yuppies who have kept their jobs and have nothing to do with the money besides betting on the stock market or bitcoin and a smaller more targeted package makes more sense.


JRM

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Re: Implications of the Blue Wave
« Reply #11 on: January 07, 2021, 09:22:52 AM »
I wonder about student loan forgiveness.  It disproportionately helps middle to upper class educated folks, not so much the people that actually need help.  There hasn't been much talk about it lately.

Read the Footnotes

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Re: Implications of the Blue Wave
« Reply #12 on: January 07, 2021, 10:25:29 AM »
I wonder about student loan forgiveness.  It disproportionately helps middle to upper class educated folks, not so much the people that actually need help.  There hasn't been much talk about it lately.

There has been some limited mention of small efforts, but the really nutty crazy stuff seems to be off the table. Biden and those closest to him have never really advocated for it, so there's no reason it should be on the radar.

They do however have some equally crazy sounding plan which they say is that everyone should be able to go to a state school for free. That would be a huge change with a huge price tag and I suspect the truth is very different from the headline soundbite. I would assume that the fine print on who qualifies will be quite long.

It's actually kind of a dumb idea in some ways, especially if there aren't serious limitations and selection criteria such as similar programs that already exist at the state level. If it was possible, more effective k-12 education would be a better way to spend tax payer dollars and student time in my opinion. The disrupting affects on higher education would also be very large. I would argue that at some point, there are diminishing marginal returns to education and that removing a market force such as a financial cost to education eliminates risk sharing and increases the number of intersectional basket weaving majors.
« Last Edit: January 07, 2021, 10:29:51 AM by Read the Footnotes »

Dalal.Holdings

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Re: Implications of the Blue Wave
« Reply #13 on: January 08, 2021, 11:06:19 AM »
Something to help the conservatives sleep at night:

Quote
[Democratic Senator] Manchin shoots down proposed round of $2K checks: 'Absolutely not'

https://thehill.com/homenews/senate/533355-manchin-shoots-down-proposed-round-of-2k-checks-absolutely-not

mattee2264

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Re: Implications of the Blue Wave
« Reply #14 on: January 08, 2021, 05:52:43 PM »

  Manchin clarified his comments. All he meant was the #1 priority should be the vaccine distribution not the checks but he didnt rule them out although he did hint his preference was for more targeted support e.g. additional unemployment benefits. Besides quite a few Republicans are in favour of the checks. So they will probably pass.

 Then Biden comes along and promises trillions of dollars of immediate fiscal relief with details to follow next Thursday. Scariest thing is he claimed the higher figure was a result of advice from economic experts. Whether he can actually achieve that level of stimulus is another matter but probably kills off any probability of a near term market correction.

 Interesting to see the moves in the 10 Year Treasury yield rising above 1% for the first time since March. I wonder if this could escalate into a massive bond sell off and if so whether that would spook markets? Everything these days seems to get carried too far and along with the V shaped recovery low interest rates are a key justification for elevated valuations.