by Wolf Richter
But consumers again paid down their credit cards; let’s be honest, that’s abuse of stimulus.
Who would have thought a few trillion dollars, channeled into the right pockets, could be such a big deal! Now everything depends on US stimulus: The stock market, the wealth of the wealthiest, and consumer spending – thereby not only the entire US economy but also imports from other countries, and thereby the economies of China and the rest of the world.
After yanking the rug out from under stimulus negotiations in Congress Tuesday afternoon, causing stocks to swoon, Trump today corrected his error and tried to push the rug back under the stimulus negotiations, and in addition promised voters a huge stimulus deal if they reelect him, while Biden is promising voters a huge stimulus deal if they elect him.