With the $2.2 trillion coronavirus stimulus package — the largest economic bailout in U.S. history — now in effect, taxpayers once again find themselves shouldering a massive and murky emergency package, crafted behind closed doors and rushed through the approval process.
No one is questioning if
The U.S. is facing the biggest financial meltdown in its history. If ever a situation screamed out for a modern-day
But there are many other questions, starting with who exactly is getting what and why? And who will oversee the funds?
For anyone over the age of 25, it’s hard to shake an uneasy sense of déjà vu. In 2008, faced with the prospect of an economic armageddon triggered by the subprime crisis, policymakers scrambled to bail out the banking and auto industries to help cauterize a massive financial wound.
Then, as now, policymakers said there was no time to examine the fine print embedded in what became the
The Biden administration once again extended the pause on student loan payments enacted to help borrowers during the COVID-19 pandemic, this time through the end of August.
The two states' combined plans amount to over $1.5 billion of the Homeowner Assistance Fund included within the American Rescue Plan Act , which was passed a year ago.
An uptick in pandemic-related payment suspensions reflecting new or restarted plan activity previously occurred as the omicron variant spread, but activity has since subsided.
Historians will forever
Now facing another massive downturn, it’s only natural lawmakers would deploy the same tactics used 12 years ago. However, missing this time
Tarp was created to increase liquidity by allowing the government to buy mortgage-backed securities. But it evolved into a program where the government could also purchase dividend-paying stocks in those banks and financial institutions requesting aid.
This created a highly scrutinized environment where banks were incentivized to quickly pay back their billion-dollar loans. By the time Tarp folded, the
The CARES Act
What is known so far is troubling.
As advertised, $1,200 deposits are on their way to qualifying taxpayers. More is available for families with dependents. Unemployment benefits have also been retooled to cover gig workers while qualification periods have also been extended. Beyond these items, protections for the average American get a little hazy.
There is also good news for the besieged health care industry. It will receive a much-needed infusion of
Those expenditures make sense. Others included in CARES are more problematic.
For instance, there is $350 billion earmarked for small-business loans, which is fine, but controls and payback terms are loose: Even small casinos can qualify. Not to be left out, larger casinos are qualified to tap into
The ailing airline industry has been promised nearly $60 billion in grants and loans. One airline alone
Speaking of air travel, Boeing — already enduring its worst year ever — is in line to
The list goes on: CARES offers $150 billion to be used at the discretion of state and local governments. The Defense Department has been granted an additional $10.5 billion. For-profit colleges can keep federal loan monies they received from students who drop out due to COVID-19. Even a Kentucky-based cosmetics manufacturer stands to earn because it is developing “
This is just a sampling of what’s included in the massive CARES package, and even lawmakers admit it will take weeks to sort out the details.
As rushed as the 2008 bank bailout was, policymakers still found time to include oversights and payback incentives, helping to reassure a nervous nation. This time out, a much bigger package was assembled in a much faster fashion.
There appears to be little in the package that seriously addresses widening wealth and health care gaps in this country. There is even less oversight.
This leaves the CARES Act looking less like a remedy for an at-risk country and more like a taxpayer-funded buffet.
