May 5, 2021

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Covid Bill vs Stock Market Drop

3 min read

Covid Bill vs Stock Market Drop

Today on Neil Cavuto he showed charts where the fed rate at 1.5 percent has intersected with the stock market drop. He said this could mean that it is better to have money in savings than investing into stock. He also said what is odd is the market is losing as the economy is trying to grow. That growth is people going back to work. He also said that the 1.9 trillion covid bill may be a bad thing because more people that do not need the money would have more money and the ones that do need the money would have less. The ones that do not need the money would save it and not invest.

This makes sense to me because it was the blue states that shut down the economy and induced no growth and a loss with a need for federal money for unemployment with plans to open sometime after the election and in January. But the partial reopening in January will not bring back the jobs and small business that had to close up for good. The small business engine they destroyed was 66% of the national economy. Now they want to raise the minimum wage to 15.00 dollars with no plan to bring back the small business that created growth. That is why these two points are intersected. We in my view are in a free fall and to create union jobs at minimum wage of 15 dollars an hour will not increase enough growth because there is no demand in an economy, they created to intersect at this time which is like a flat line. All this free money is going to cause the problem with the fed rate at 1.5 which should not be adjusted higher because then all hell might break loose. I said it would go dark this year with Biden. Let us wait and see.

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If you tried to create growth with a low interest rate you will not have any profit to pay for material break down. It would be an act of consumption with no end for the consumption to rest from because there can be no return. If Biden does that covid bill it is what I said he would do in the first year and that is tank the economy. My opinion.
Also in the news Pelosi is trying to take his nuclear codes away from him. I told you she would move to get rid of him right away. There must be something wrong with him and they know that.