U.S Senator Elizabeth Warren has stated what her plan is to see the U.S through the rampaging Coronavirus. In a tweet, the 2020 presidential candidate suggested that she would enact at least $400 billion fiscal stimulus package. As analyst Alex Kruger has been quick to point out, this is just $75 billion short of the 2008 Troubled Asset Relief Program that helped bail out financial institutions.
Coronavirus Leads U.S To A Financial Crisis.
The Coronavirus continues to spread and hit investors hard. Just last week, the stock market lost over $6 billion in the five days. This prompted the U.S FED chairman to make a statement over the future of the market and the current state of the economy.
In his statement, it was clear that the Coronavirus could prompt interest cuts in March and its impact was yet to be fully felt. He also added a warning that the epidemic had the potential to interrupt the economy.
The disruption could amount to that seen back in the 2008 financial crisis according to many analysts. Now, Senator Elizabeth Warren has backed this thought with some figures.
Back in the 2008 financial crisis, then-president George W Bush introduced The Troubled Asset Relief Program to stimulate the economy, under the program, a $475 billion package was introduced to boost financial institutions.
Warren going on the offense, looking for a $400 billion fiscal stimulus package to fight against coronavirus.
For perspective, the 2008 Troubled Asset Relief Program for bailing financial institutions out was for $475 billion. https://t.co/fzTQDKh3rq
— Alex Krüger (@krugermacro) March 2, 2020
With the recent suggestion from Senator Warren, it’s a sign that there is fear that a financial crisis is on the horizon. As analyst Kruger notes, she wants to get ahead of the situation and be on the offense.
Stocks And Crypto In The Green Zone
There is no doubt that the Coronavirus epidemic is having a huge impact on the markets. Although earlier today, the stock market was in the green. Notably, so has the crypto market. The fear is not gone.
If the US government was intervening on US equities, we would be looking at a vertical rally
– this is not the case.
– if things got that bad and that scary, the US would ultimately put to good use it’s zero cost of borrowing and nearly limitless access to liquidity
— Thomas Lee (@fundstrat) March 2, 2020
According to Reuters the CDC has just confirmed 43 new cases of the Coronavirus in the country. Monetary easing policies are inevitable. This should see Crypto’s popularity rise in the coming weeks. Especially Bitcoin, we could see new ATHs.
As Cardano CEO noted a few days ago, crypto will be the best hedge. And with this, prices will soar to new highs.
Source: Coin Gape