See bottom of email for analyst certification and important disclosures.
Washington DC COVID-19 UPDATE
A lot of moving pieces and the size of package is going in only one direction – UP! While the details are very much a work in progress, the new baseline appears to be $850 billion. Airlines will be part of the package but I believe the $50 billion request was the opening bid. Airlines are also likely to get some unpleasant strings restricting the change fees and other fees they have added in recent years. In 2008 there were also caps put on CEO compensation, not a big deal.
While there is actually little support in Congress for the payroll tax cut it seems that President Trump will insist on it and therefore it will be in Administration proposal and Congress may have to accept it to assure the President’s support.
After some partisan bickering yesterday it seems like the House passed package from last week will get Senate approval as early as today.
In the upcoming bill there is growing interest in sending out checks to everyone as part of an effort to allow people to stay in their homes and buy basic necessities.
White House officials and senior Congressional aides are on the phone getting ideas from just about every sector of the economy and interest groups. They don’t want to leave a key player out by oversight. Also the is a wide spread view that the bill will be big but won’t be the end of the story.
Lot’s happening, evolving story, demonstrating that the government can move relatively quickly when necessary,