Vital Statistics:
Last | Change | |
S&P futures | 2799 | 45.4 |
Oil (WTI) | 26.56 | 1.49 |
10 year government bond yield | 0.75% | |
30 year fixed rate mortgage | 3.47% |
Stocks are higher this morning on optimism that things are turning the corner with the COVID-19 crisis. Bonds and MBS are up.
The bond market closes early today, and markets will be closed on Friday.
6.6 million people filed for unemployment benefits last week. That puts the number of COVID-19 job losses at around 16.5 million total.
The Fed unveiled a new round of measures to support the economy this morning. They include a program to augment the SBA’s Paycheck Protection Program by supplying liquidity to banks that participate, allowing them to pledge the actual loans as collateral. The Fed will also purchase loans under the Main Street Lending Program. The TALF program will be increased and more direct aid will be sent to state and local governments.
The Main Street Program will offer 4 year loans to companies employing up to 10,000 workers with revenues under 2.5 billion. P&I will be deferred for one year. The banks will retain 5% of the loan, and can sell the remaining 95% to the Fed.
Interestingly there is still no facility for mortgage servicers. It looks like the issue is finally getting the attention of lawmakers, however we still don’t have anything. In his comments at the Brookings Institution, Fed Chairman Jerome Powell said that he is watching the mortgage servicers closely, which means the Fed is probably considering some sort of relief.
Looks like Wells is out of the penalty box, at least as far as SBA loans go.
Jerome Powell said the Fed will act “forcefully and aggressively” to until the economy fully recovers. “Many of the programs we are undertaking to support the flow of credit rely on emergency lending powers … We will continue to use these powers forcefully, proactively, and aggressively until we are confident that we are solidly on the road to recovery,” Powell said in prepared remarks for an online event hosted by the Brookings Institution.
Filed under: Economy, Morning Report |
Wall Street Journal editorial board rips Trump’s ‘wasted briefings’
The conservative Wall Street Journal editorial board on Thursday published a remarkable take-down of President Trump’s daily coronavirus press briefings:
“The briefings began as a good idea to educate the public about the dangers of the virus, how Americans should change their behavior, and what the government is doing to combat it. They showed seriousness of purpose, action to mobilize public and private resources, and a sense of optimism. Mr. Trump benefitted in the polls not because he was the center of attention but because he showed he had put together a team of experts working to overcome a national health crisis.
But sometime in the last three weeks Mr. Trump seems to have concluded that the briefings could be a showcase for him. Perhaps they substitute in his mind for the campaign rallies he can no longer hold because of the risks. Perhaps he resented the media adulation that New York Gov. Andrew Cuomo has been receiving for his daily show. Whatever the reason, the briefings are now all about the President.
[…]
“The President’s outbursts against his political critics are also notably off key at this moment. This isn’t impeachment, and Covid-19 isn’t shifty Schiff. It’s a once-a-century threat to American life and livelihood.
The public doesn’t care who among the governors likes Mr. Trump, or whether the Obama Administration filled the national pandemic stockpile. There will be time for recriminations. What the public wants to know now is what Mr. Trump and his government is doing to prevent the deaths of their loved ones.”
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Does the WSJ have any sway with DJT?
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I’m not sure who he listens too but he needs to stop these briefings and let Pence and others handle them in my opinion.
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The poll numbers have the most sway. If he starts dropping in the polls, he might change tactics.
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Obviously, the briefings would ideally be held by people who can stay on point. At least a president Biden could likely be sidelined by his team. This doesn’t appear to be an option for Trump.
On the other hand, Trump being Trump is–for some people–a sign of normalcy. So I’m not sure that the overall impact is going to be that negative. Polling thus far would indicate it’s not really moving the needle.
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That’ll show Trump!
https://www.scmp.com/news/china/society/article/3079293/coronavirus-nature-magazine-apologises-reports-linking-covid-19
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By all means, let’s protect the petri-dishes of Asia and the middle east and preserve them for the creation of future pandemics because we don’t want anybody’s feelings hurt.
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I sincerely support this and hope that California goes farther and that other states adopt this posture as well.
https://www.bloomberg.com/opinion/articles/2020-04-09/california-declares-independence-from-trump-s-coronavirus-plans
States need to take back their sovereignty. Hell, I’d support any state that wants to secede.
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I like Ace’s plan–let them form new “nations” by county. Each county votes.
I just don’t see how it can really happen. California would likely have to pay top dollar for national parkland and military bases and acreage. And come to some sort of deal regarding ports. I just don’t see it.
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Your pet issue just made the front page of the Washington Post NoVA.
https://www.washingtonpost.com/health/starved-for-cash-hospitals-and-doctor-groups-cut-staff-amid-pandemic/2020/04/09/d3593f54-79a7-11ea-a130-df573469f094_story.html
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One of the places I call on, an IDN called Bon Secours Mercy Health is estimating they’re losing 100 million a month and have furloughed about 1,000 employees. The system does a lot of other care besides Covid-patients, but they can’t right now.
That’s just one medium size IDN.
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What is starving them for cash? Ultimately, what is making them so cash-strapped?
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