Investors welcomed the idea of more money flooding the economy on Monday. At mid day, the Dow traded up 600 points to 32,100 for a gain of 1.91%. The S&P traded up 35 points, or 0.93% at 3877. The tech-heavy Nasdaq, which has recently been under pressure, traded down 57 points at 12,862.
Investors are hopeful that the $1.9 trillion spending bonanza will supercharge the economy.
The problem, however, is that the stimulus is coming at a time when the economy doesn’t quite need it — and the economy definitely can’t afford it.
A recent report from the CBO showed that U.S. debt load is on track to equal more than the overall size of the economy this year. By 2051, U.S. will total more than two times the size of the economy.
In other words, we don’t have this money... and our government has NO plan to get us out of debt.