Economics Thread

The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday, leading to a backlash that prompted one company to give the money back and a Republican senator to say that “millions of dollars are being wasted.”

Thousands of traditional small businesses were unable to get funding from the program before it ran dry. As Congress and the White House near a deal to add an additional $310 billion to the program, some are calling for additional oversight and rule changes to prevent bigger chains from accepting any more money.

Ruth’s Chris Steak House, a chain that has 150 locations and is valued at $250 million, reported receiving $20 million in funding from the small business portion of the bailout legislation called the Paycheck Protection Program. The Potbelly chain of sandwich shops, which has more than 400 locations and a value of $89 million, reported receiving $10 million last week.

Shake Shack, a $1.6 billion burger-and-fries chain based in New York City, received $10 million. After complaints from small business advocates after the fund went dry, company founder Danny Meyer and chief executive Randy Garutti announced Sunday evening that they would return the money.

https://www.washingtonpost.com/busi...=wp_main&utm_medium=social&utm_source=twitter

I'm surprised that companies of that size and with access to capital markets were allowed to borrow from the PPP funds.

My small business did get approved by my bank last week for a PPP loan (less than $200K) so I can't complain. The program can really help small businesses stay afloat. And I'm glad Congress is going to provide more funds for it.
 
If only there were in an independent Inspector General that was tasked with overseeing the distribution of the funds so things like this wouldn't happen.

Would be a shame if the stimulus bill created one and then days after the bill passed they got fired...
 
The Chosen One said:
If only there were in an independent Inspector General that was tasked with overseeing the distribution of the funds so things like this wouldn't happen.

Would be a shame if the stimulus bill created one and then days after the bill passed they got fired...
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Oversight is the antidote for the corruption and incompetence that are the hallmarks of government under poorly chosen one.
 
sturg33 said:
Asset prices completely inflated and distorted by fed.

No idea how all this turns out but my boy Ron Paul has been calling it for years
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actually that would be an example of deflation...which is the opposite of what your boy has been predicting
 
nsacpi said:
actually that would be an example of deflation...which is the opposite of what your boy has been predicting
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I said everything is distorted or inflated. There's no fundamentally back prices anymore bc the fed has propped everything up.

The whole market is put of whack.
 
Buddy of mine says the Nymex settles every day at 230.

There will probably be suicides over that today.

Said many people lost over 5+ million if you only had 100k barrels, and that’s a small quantity for most
 
sturg33 said:
I said everything is distorted or inflated. There's no fundamentally back prices anymore bc the fed has propped everything up.

The whole market is put of whack.
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Ron Paul has been on the inflation/debasement of the dollar schtick for decades now. But I guess he isnt an expert in monetary policy and shouldnt be held up to too high of a standard.
 
nsacpi said:
Ron Paul has been on the inflation/debasement of the dollar schtick for decades now. But I guess he isnt an expert in monetary policy and shouldnt be held up to too high of a standard.
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The fed balance sheet is going on $9T.

If that doesnt cause inflation nothing will. Either math is real or it isn't, right?
 
sturg33 said:
The fed balance sheet is going on $9T.

If that doesnt cause inflation nothing will. Either math is real or it isn't, right?
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you might want to ask yourself why inflation didn't rise with the balance sheet expansion the Fed did in the last cycle...it would seem to offer a counterfactual to your "math"
 
nsacpi said:
you might want to ask yourself why inflation didn't rise with the balance sheet expansion the Fed did in the last cycle...it would seem to offer a counterfactual to your "math"
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There's a lot of reasons. I dont think you're that interested in hearing about them.
 
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