Stimulus & Bailout Watch Thread

Pressure

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CookoutGang
As someone who ran for POTUS said, its capitalism that doesn't start at zero
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:troll:
For me any good will was lost at the must be spent part?

What's the enforcement mechanism in place? Will they merely be taxed on that money or be subject to collections?

Or is there something more sinister at play where they're given a card :francis:
 

BK The Great

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For me any good will was lost at the must be spent part?

What's the enforcement mechanism in place? Will they merely be taxed on that money or be subject to collections?

Or is there something more sinister at play where they're given a card :francis:


I’m wondering what will happen if people just want direct deposit and not a card.
 

voltronblack

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A $500 billion Treasury Department fund created by the Cares Act in March to help stabilize the economy has lent barely any money, according to an initial report issued by a Congressional Oversight Commission created by the law.

The panel issued its first report Monday, as required by law, even though it still doesn’t have a chairman. That person must be appointed jointly by House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Mitch McConnell (R-Ky.).

They still haven’t agreed on an appointment — an example of how oversight of the trillions of dollars Congress approved to fight the coronavirus is getting off to a slow start.

However, the commission has four other members who were appointed individually by congressional leaders, and they produced a 17-page report that contains mostly questions about how the Treasury fund is going to function.
The report describes the lending facilities the Treasury Department has created to operate through the Federal Reserve, and says that only one of them has received funding. It is called the Secondary Market Corporate Credit Facility and is supposed to purchase corporate debt. It has received $37.5 billion.

The $500 billion Treasury fund also set aside $46 billion to make loans and loan guarantees to the airline industry. None of that money has been disbursed. Although the White House and numerous states are pushing forward with efforts to reopen parts of the economy, the severe economic trauma caused in the past two months does appear to have dealt a heavy blow to a large number of businesses and workers. A growing number of businesses, particularly those that rely on direct customer interaction, have closed and are not expected to reopen. And others have expressed frustration about the changing terms of government aid programs.


The Treasury Department has announced five lending facilities to disburse other portions of the money, including a Main Street Lending Program that is supposed to help small and medium-size businesses.

The report describes how even before any money from the Main Street program has been lent, the terms of the program already have evolved. The changes include increasing the size of loans, eliminating a requirement that companies have to attest they need money “due to the exigent circumstances presented by” covid-19, and modifying a requirement that companies make “reasonable efforts” to maintain payroll and retain employees during the term of a loan. Instead, they will be required to make “commercially reasonable efforts” to do so.

The report poses questions to the Treasury Department and the Federal Reserve, including asking about risk to taxpayers and how the agencies will assess success or failure of its programs.

The Treasury Department had no immediate comment on the report.


The report underscores the wide discretion the Treasury Department has in using $500 billion in taxpayer money as it sees fit. Congressional Democrats including Sen. Elizabeth Warren (D-Mass.), who headed a similar oversight commission after the 2008 financial crisis bailout, have criticized the money as a “slush fund” for corporations.

The commission consists of four members: Rep. Donna Shalala (D-Fla.), who was appointed by Pelosi; Sen. Patrick J. Toomey (R-Pa.), appointed by McConnell; Rep. French Hill (R-Ark.), appointed by House Minority Leader Kevin McCarthy (R-Calif.); and Bharat Ramamurti, a former Warren adviser appointed by Senate Minority Leader Charles E. Schumer (D-N.Y.). The fifth member is supposed to be the chairman, appointed jointly by Pelosi and McConnell.

Aides to Pelosi and McConnell had no update Monday on when that appointment will be made.

The Congressional Oversight Commission is one of a series of overlapping oversight mechanisms created by the Cares Act and separately by Congress, all of which have gotten off to a slow start. The Cares Act also created a special inspector general position to oversee the $500 billion Treasury Fund, but the Senate has not yet confirmed the man named to fill that role.

Congress passed the $2 trillion Cares Act in late March as a way to try to soften the economic fallout from the coronavirus pandemic.

Treasury Secretary Steven Mnuchin and other senior officials have worked aggressively to stand up the legislation’s Paycheck Protection Program, which is being run jointly with the Small Business Administration. That program is not covered by the $500 billion fund that was the focus of the commission’s report on Monday.


The report comes as congressional Democrats and Republicans are sparring over the next steps in responding to the pandemic. Congress has approved four bipartisan bills totaling nearly $3 trillion in spending to address the economic ravages of the pandemic.

On Friday, House Democrats pushed through a $3 trillion bill that would fund all aspects of the response, including a second round of stimulus checks to taxpayers and more money for testing.

But Republicans and Trump administration officials say they want to wait and see how the money approved so far works in the economy before agreeing to any more spending. That’s despite warnings from Federal Reserve Chair Jerome H. Powell that the economy could enter a prolonged downturn if Congress does not pump out more money.
 

voltronblack

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THIS WEEK, with at least some members of Congress expected to be in Washington and a fourth phase of coronavirus relief legislation on the horizon, the House of Representatives needs to make remote voting a priority. This is not simply a public safety issue — as has been argued in the New York Times — it’s also about being able to wield Democratic power. Democrats are not, as Vox’s Ezra Klein recently asserted, “governing from the minority.” Rather, they are failing to govern even the House of Representatives, where they hold an ample majority.

House Speaker Nancy Pelosi has dragged her feet on the issue, using Congress’s lack of remote voting arrangements to shore up her influence over legislation and effectively shackle progressive members of the Democratic caucus. As long as it is impossible to meet in person, progressives in Congress are effectively powerless, and House Republicans, though the minority party, have veto power over the chamber’s legislation.

Instead of instituting rules allowing for the House to hold committee hearings and vote remotely when the House was last in session in March, Pelosi has spent the last two months running the House through “unanimous consent” procedures. This is exactly what it sounds like: A measure can be blocked if any present member offers objection. By doing so, she ceded substantial control to Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy.

The House has historically been ruled by the majority with an iron fist. Democrats should be setting the terms of the debate by passing bold bills as a negotiating tactic. Just look at the CARES Act — the third phase of coronavirus relief that passed in March. Pelosi could and should have had the House approve a simple, popular, progressive relief package that, for example, offered even more generous unemployment benefits, canceled student debt, and paid everybody in the country $2,000 per month through the duration of the crisis and then dared the Senate not to pass it. She didn’t because under unanimous consent, anything more liberal than what the Senate passes will be blocked by Republicans.

Indeed, it just took one Republican, Kentucky Rep. Thomas Massie, to block Pelosi’s attempt to rubber stamp the CARES Act using unanimous consent. Massie’s call for a recorded vote spurred House leadership to fall back on its next-best option for moving in a hurry under existing rules: Usher a bare majority of members back to Washington to try to achieve a quorum and pass the measure using an unrecorded “voice vote.” Since leadership of both parties had signed off on the $2.2 trillion corporate giveaway, it didn’t matter — and remains unclear — whether a majority of those voting were Republicans or Democrats.

That we lack a complete accounting of who was present at the vote for such a consequential and controversial piece of legislation is a travesty. Though his actions frustrated many of his House colleagues and invited the Twitter wrath of Donald Trump, Massie’s attempt to force a recorded vote was justified. Voters have a right to know where their representatives fell on the bill so they can hold them accountable, and the same goes for any major legislation moving forward. (The Intercept has conducted its own roll call of members’ positions on CARES.)

Until remote lawmaking is in place, progressives’ hands will be tied. The more progressive a hypothetical bill is, the more likely it is that Republicans will block passing it by unanimous consent. If there’s a push for a roll call vote, Republicans could kill the quorum — the requirement that a majority of members of the House be present — unless 216 of the 233 serving Democrats are in the chamber. (There are five vacancies in the House right now, meaning a quorum is lower than it would be were all 435 seats filled.) Meanwhile, as the crisis continues, the risk increases that representatives will be unable to travel to Washington.

As things stand, Democrats are unable to act as watchdogs. The Treasury and the Federal Reserve are managing a multitrillion-dollar crisis response under a cloak of darkness. The CARES Act includes weak oversight provisions, including the institution of an inspector general — whose work Trump intends to frustrate — and an oversight board without subpoena power. This problem is compounded by Pelosi’s appointment of Rep. Donna Shalala to be her designee on this board. The Florida Democrat has expressed a lack of interest in being aggressive and was found to have violated ethics rules by failing to disclose hundreds of financial transactions she has undertaken during her year or so in office. Meaningful oversight is more likely to be driven by House committees with relatively intrepid chairs, but only if Pelosi chooses to allow them to function remotely so that they can hold hearings, demand access to information, and even issue subpoenas.

The work that can be achieved in such settings can be profound. When the likely magnitude of the impact of the coronavirus was just becoming apparent in March, Rep. Katie Porter, D-Calif., gained notoriety for extracting a pledge from Centers for Disease Control and Prevention Director Robert R. Redfield that coronavirus testing costs would be covered even for the uninsured. If committees are not meeting, then this sort of exchange cannot take place.

According to research by Data For Progress, 67 percent of people polled supported remote voting and only 16 percent said the rules should not be changed (the rest were unsure). The public clearly wants Congress to keep working during the pandemic, and many legislators agree. In March, dozens of representatives signed various letters advocating for changes to House rules to allow remote meetings. “We need to provide a mechanism through which Congress can act during times of crisis without having to assemble in one place,” one letter with over 50 signatures insisted. The Constitution, the authors pointed out, permits each House to “determine the Rules of its Proceedings.” The founders may not have explicitly endorsed virtual voting, but they also didn’t prohibit it.
 

BK The Great

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So once the fed chairman said to pass a stimulus or else we’ll risk a recession the stock market dropped afterwards? That’s crazy.

 
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