Friday, March 20, 2020

Big Bank Economist: "Don’t send checks — let the banks quickly compensate businesses so they’ll hang on to workers" (JPM)

He may or may not be right but I do know this: If the helicopters are flying and they don't touch down near the average person, this time around there is going to be hell to pay.
From MarketWatch:

A modest proposal for U.S. lawmakers from Jim Glassman, labor-market expert 
Memo to Congress
From: Jim Glassman, J.P. Morgan Chase economist and labor-market expert.
Subject: Don’t send checks to workers. It is inefficient.
What to do instead? In an interview with MarketWatch, Glassman says that he would like to see the Trump administration use the banking system to channel funds to the business community, large and small entities alike.

The idea is that banks will tell their business clients that they will be compensated for any loss of revenue caused by the cessation of activity. As the government wants work to stop to halt the spread of the coronavirus, they should pay for the damage caused by the stoppage.

The kicker is that banks would tell the businesses that the only way they would get the money is if they continue to pay their existing workforces. No layoffs....MORE