US stimulus check - What we know (and don't)

Squawk Pod


I up on today's pod the US government's plan for economic stimulus. The Federal Reserve has announced measures. That it's taking. We've discussed that here on. Squawk POD now the US Treasury Secretary Steven mnuchin has pitched a one trillion dollar package to Senate Republicans now. This plan includes sending Americans checks to help. Households and businesses stay afloat. The trump administration has backed but other Republicans are split. Here's Andrew ultimately what's going to happen is you're already seeing the Elizabeth warrens and others say we're going to give money. We need to clamp down in executive compensation we have these stipulations these stipulations. Frankly what needs to happen and I think from chronically and the two thousand eight crisis and every other crisis is you just need massive stimulus. You actually don't want strings attached because you want as many people that take the stimulus as humanly possible. Which is antithetical. Yes you're right politically where where you typically base to happen Andrew. You want this to happen as quickly as possible. But you probably want it to be more targeted you start thinking about how to handle that much money away and you know look at it needs to go to the people who have lost their jobs who have been put out of work from the small business owners who are in that position of already having laid them off. I. I saw a letter this morning from a guy. I'm hoping we're going to have on the show tomorrow He's a restaurant tour. He's based in Ohio but he's got restaurants I think in. What is it thirty? Seven restaurants fourteen states on Monday. He laid off four thousand employees. He's saying that it would basically take at least two weeks of revenue to get all those places back up and running because he has to bring and managers and staff ahead of time to get restaurants clean to get everything back up and running. I mean I don't need money you don't need money right now. Joe Doesn't need money right now. I'd like to see that money. Go to the people who need it. I talked to an accountant yesterday in New Jersey. Who says that? He's got about twenty clients that just this week have had to lay off fifty percent or more of their staff. He was talking about cancellations of business. That's been booked out of the next two months and no new business coming in. These are people like caterers. Limo service providers moving companies tree service providers. He said they're all dead in the water. And that's where the immediate incredible shock has come across this country and that's where the money needs to and we're definitely having different hats shifting around I saw. Afc yesterday yesterday said something. About wait. A second Boeing had thirty billion in buybacks over the last hour many years. Now we're talking about sixty billion dollar bailout for the industry and I found myself going. I mean that's I mean definitely. There's some some book political. Nobody was savings as being. I agree with that. I almost agree with that here. You blow all this money up at three and four hundred dollars a share joe suggest that ultimately whatever it is and I'm just going to suggest that whatever whatever stimulus program we're going to have is ultimately going to privatize the gains and socialized the losses. That's what happens in a crisis but when the crisis is over there needs to be a real discussion about financial responsibility in this country which we don't have in the best of times to actually have insurance policies in money on hand when these things happen. And that's that's the probably one hundred thousand people because she used to the crisis to change. The policy in the moment is too painful. The problem is that nobody is willing to use not to use the good times to change the policy. And we've had that to be no what's wrong with you. I agree with you. I agree with you but I think that we gotta look at all this. Espn stakeholder stuff that we went through and realize holy cow. We need prophets to do all these great things do. We need profits to share with our stakeholders. And if you if you blow all this money on some CEO's PET PROJECTS VIRTUE SIGNALING. And then you come to a time like this you realize wow shareholders really do need to have prophets share with took satisfy any other stakeholders you need to be profitable and not planning trees and Africa

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