As we receive our bailout checks to ease us through this COVID-19 period with over 30 million now unemployed, I wonder what the effects will be on our economy in the future? We are going through an unprecedented event that could have unknown implications. The safety net that has been thrown can create a slippery slope as the federal government injects trillions of taxpayer dollars into the system to ease the pain.
There is exists a delicate balance, both financially and morally in our economic system. We are already deeply in debt and this infusion of cash just continues to overextend our battered nation. Very bad events have occurred in the past when record-breaking deficits have been combined with cheap credit, and less money being received by our weakened treasury. The after-effects can bring runaway bear markets, and personal pain for investors. Furthermore, we can see a large scale depression that could rival that we experienced in the 1930s following the Wall Street crash. Already, our marketplace is totally performing erratically. Add to that our lack of a healthcare system in crisis where too many are uninsured, and too many of our citizens are two weeks away from falling into poverty with little or no savings. Also, I have little trust in the banking establishment after seeing what happened in the “Great Recession” back in 2008, the echos of which we are still feeling today.
I hope I am wrong, but the cure could be worse than the disease.
- Lou Reinitz LJR Insurance Solutions LLC