The biggest bailout in history is currently unfolding with the American government announcing they are to directly send $1,000 to every American.
Treasury Secretary Steven Mnuchin said they are to send checks to Americans immediately.
Americans need cash now, the president wants to get the cash in their pocket now, in the next two weeks.
The proposed payroll tax is over months, while this is much faster, it can be done pretty quickly and accuratly.
Mnuchin said they don’t want to give $1,000 to people earning a million a year, but Donald Trump, the US president, said they want to ensure these checks go out as soon as possible.
“We have to do this now,” Mnuchin said, with Trump stating there are 4-5 ways they can do it, further details to be provided later as a whole package is to be announced to ensure Americans get the money in their pockets quickly, but also for businesses, airlines, etc.
Among other measures $300 billion in tax payments can now be deferred for 90 days for anyone that owes up to $1 million or any company that owes up to $10 million.
US treasury is to make available $10 billion for a Fed special purpose vehicle to guarantee commercial paper purchases.
Stock markets are to stay open, according to Mnuchin. “We are going to do everything to ensure Americans have access to their money in banks, to their 401k, and stocks.”
Banks are in a strong position, Trump said, unlike in 2008 this is a natural disaster and hopefully a temporary one with Trump stating he hopes the economy bounces right back as soon as corona clears.