Mnuchin's Folly...
Early this morning on CNBC, Mr. Mnuchin misleadingly spoke as if he were simply “following the intent of the law” by yanking this monetary aid away and he put the onus on “Congress to re-appropriate these funds,” even though widespread reporting suggests his boss, President Trump, has no interest in new deals. Tellingly, a couple of programs that help Wall Street were allowed to live on “in an abundance of caution,” as the secretary’s letter claimed.
Secretary Mnuchin’s move comes just as President-elect Joe Biden is preparing to name his own Treasury secretary, and it fits a growing pattern of Mr. Trump’s team doing everything it can to undermine and kneecap the incoming administration’s ability to crisis manage.
We have a long way to go until Inauguration Day, yet the Fed can begin to prepare itself now to act as more than a backstop. Based on the prospects for action from Congress, our states and local communities will need it.
David Dayen in his newsletter with a different take on Mnuchin's work...
Rhetorically, however, what Mnuchin’s saying is completely on point, and should be taken up by Democratic leaders. Even the Republican Treasury Secretary is now admitting that Wall Street has had enough support, and it’s time to give the same support to the general public in this critical moment, as a bridge to the vaccine’s eradication of the virus.
@Madken65 I have no proof but it makes me wonder if the PPP loan program was more of a free for all that we’ve seen. Mnuchin must be afraid of what going to come out. There’s a reason the WH has had a steady stream of small-mid size businessmen into Trump’s office for all those photos and laying of hands sessions.
But again, no proof of any of that. Pure speculation on my part.
@Shelleyaw123
And I really don't understand it fully enough to provide any clarification. I was perplexed in the different takes, but do believe this has largely been about propping up Wall Street, because again, they saw the opportunity, and the rest of us wait for the trinklets to trickle down.