Is it big? Yes. Is it bold? Yes. And we can get it done.
Fact Check: these are all true.
At the Carpenters Pittsburgh Training Center, President Biden formally announced his $2 trillion plus “American Jobs Plan” (AJP) targeted at increasing growth in jobs for the US economy. This is not merely an infrastructure plan, but truly a wide ranging spending plan covering a gamut of goodies areas outside of roads, bridges and tunnels. Candidate Biden proposed many of these during the campaign and is following through on those promises. Unlike the…
Why Democrats will move on it
Key Takeaway: It is a logical political path, prepare for it now
Where we’ve been
After the passage of the $1.9 trillion stimulus bill, the Biden administration is moving on to the other items on their legislative agenda. As we’ve been writing and speaking over the last 18 months, this is an ambitious list of spending and tax programs to drive Democrats’ agenda. The list includes the environment ($1.7T), infrastructure ($1.3T), healthcare ($650B) and affordable housing ($640B).
While Democrats have a unified government with the House, the Senate and the presidency, they have a…
A Hint of Better Times Ahead
What’s astonishing about this data is how strong job creation was during a February cold snap that forced people to stay inside and a devastating storm which plunged Texas into the dark.
379,000 more workers found work in February, quite a surprise from the 225,000 expected.
But I’m Still An Apocaloptimist
My apologies: There is no returning to a pre-pandemic economic “normal”
We have seen the best our technology can produce when Moderna and Pfizer announced their vaccines at the end of December. The speed and efficacy are breathtaking and miraculous. As of this week, the US has given out over 57 million doses and globally it’s 186 million. At this rate, the Biden administration is easily meeting their goal of 100 million doses in 100 days as the nation is immunizing 1.69 million per day according to Bloomberg’s Covid-19 Vaccine Tracker. …
Why Elon Musk is Like a Greek God
Let’s state this right at the start: the goal of the Biden administration, Congress and the Fed is to make the economy white hot.
Not trend growth, not strong growth, but 8–10% GDP growth.
Let that sink in for a minute.
The US economy will recoup the lost economic growth from 2020 in 2021. Remember in June of last year, the Congressional Budget Office estimated it would take 10 years to recoup this lost economic output or output gap. They are everything we’ve come to expect from a government economic research group.
Top 5 Driving the Economy and Markets Right Now
#1 AOC, Redditt and GameStop. It’s hard not to smile when I see what’s going on with GameStop and Redditt as the once less-powerful retail investor took on bigger hedge funds and won. Turns out, they do know about options and what happens when the underlying price approaches the strike price. It makes the shorts have to buy to delta hedge, driving the price up and creating a short squeeze for the ages and crushed a few hedge funds along the way. It reminds me of the axiom I followed when…
1. Vaccine Hesitancy
2. Virus Mutation
3. Cyber War
4. Protracted Congressional Fighting
5. Credit Crunch
The combination of 1 & 2 will be tragic. But if accompanied by 3,4 or 5, then the optimism for the economy and the enthusiasm for stocks by investors will both shift down significantly.
With the world and US trying to cope with COVID-19, you probably haven’t thought much about what’s going to happen in the first 100 days of the Biden administration. The good news is we have and will be sending out our research on what to expect. Our mantra is: prepare now or get left behind. Our job is to prepare you for what we see coming to drive your success.
Today, we’re covering Biden’s top 5 priorities for the US economy. The size and impact of these policies will shift significantly should Democrats win both Georgia senate races. …
Andrew B. Busch is the former 1st Chief Market Intelligence Officer for the US government.