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Biscuit (Noun) : A person who is willfully ignorant and almost certainly incompetent

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Stimulation!

Moving with the speed only an elderly snail could appreciate congress is creeping closer and closer to passing “something” that looks like a $1,900,000,000,000 Covid relief bill.

The part of that bill which most Americans are interested in is the inclusion of a “stimulus” check. Extra points if you’ve managed to breed of course, but basically $1,400 for every person with a limitation of $75K of income for single folks and $150K for married folks. At least we can agree that for the most part this time the “rich” will not be participating in a government giveaway.

This would effectively pump around $281 Billion into the economy. Without question this would give the economy a boost. Argue the size and or effect of that boost if you want, but it will boost it in some fashion.

Lost, however, in that cash drop is another government cash drop that occurs every year: The annual receipt of the Earned Income Tax Credit for low income earners. Most estimates I can find scattered throughout various government websites say that should pump another $70 billion into the economy. Again, bonus points for breeding!

So the government over the next forty five days or so will dump about $350 billion dollars into the pockets of the lower quartile of income earners. That’s one hell of a cash drop. Take a moment to go buy some Wal-Mart and Huggies stock.

While I was digesting that amount of cash in my head this morning I also came across another article of doom regarding how far behind tenants supposedly are on their rent. According to this article if the eviction moratorium is lifted that as many as 40,000,000 people could be evicted from their homes.

First, I don’t believe that. It’s the auditor in me thinking this number is made up for effect. It’s also the landlord in me where my personal rental portfolio is 100% occupied and almost all of them paying as usual. Maybe people getting thrown out of their overpriced shit in San Francisco could be the best thing to ever happen to them.

Second, a $350,000,000,000 cash drop into the pockets of the folks most likely to be behind on their rent seems like it would take care of that. For most of my tenants the stimulus checks alone would pay four to five months of rent.

My primary concern in the end though is what happens when those months do go past? With cash dumped in their pockets will people go to work? Or will they wait until the money is depleted first? And when it’s depleted, what happens next? Are we not right back where we started?

I honestly don’t know for sure. But it’s a scary prospect. Particularly since we know that the media will sing from the top of the mountains about how Uncle Joe has come along and saved us all from the Covid. One thing I am sure of is that this money printing debt spiral is unsustainable.

So for now this guy is saving up his cash. Opportunity is a coming and I have a feeling that when it does it will be a doozy.

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