Dividends and US Treasury defends coronavirus relief programs

One of the reasons why we love democracy is that senior officials have to testify about what they are doing and how they are doing. Many times you may not like the answers, but one can ask. In mid May it was the Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell’s turn to take the seats. These men have lead more than $5 billion in stimulus to the economy. Are they doing it right? on the correct track? who is getting helped? and a multiple number of of issues were raised.

In an article by David Lawder of Reuters, both said more stimulus will likely be needed. Both departments have done the work in record time, however there were still areas not being helped from the side of the opposition.

Congress is considering more aid to states, increase pay for essential workers, and trying to help the small and medium sized businesses.

The federal reserve has slashed corporate interest rates near 0% and has worked to keep banks giving out credit. It established lending facilities for companies through the purchase of corporate bonds (prior to the virus, the fed only bought government bonds and corporate bonds were allowed to fail. Companies known as vulture investors came in to pick up good assets and Chapter 11 the rest. At the moment this is not happening is that good or bad for the economy as a whole?)

While Treasury has acted quickly, there has been errors but given 30 million on layoffs, hopefully more good was done than bad. Has expectations and oversight changed?

Linking to dividend paying stocks, the oversight of most companies is their annual meeting where shareholders can ask questions. Most meetings have been how has the company managed and will the profits be continuing? Easy questions to ask, hard to answer.

There are more questions than answers, till the next time – to raising questions.

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