When Moral Hazard Becomes Blackmail

David Rosenberg had a pithy note Wednesday morning, observing that the cure has been way bigger than the disease:

The economy is a bicycle on training wheels and the data have been pumped by over $5 trillion of fiscal and monetary pump-priming this year,which has more than doubled the actual economic loss from the pandemic!

For those who think there is anything truly organic about what we are seeing unfold in the economy, the math shows that if not for the gift that keeps on giving from the gobs of fiscal stimulus already handed out, real GDP would have contracted at a 10% annual rate in Q3 as opposed to the ballyhooed +30% consensus view.

That’s right. And who do you think is leading the charge to pile another $1.6 to $2.2 trillion on top of all the free stuff which has gone before?



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