3rd Quarter 2020: FEDMEDS are pushed again to Lobbyist/Financial Groups

  As territories close down/re-trench , the FEDs have slowed down their Balance Sheets slowly, and the 2nd round of PPP loans have been FINALLY offered to 'real' Small Businesses.





Continued shorting of the KBRE KBW index
The Airline industry continues to circle the airport at reduced stacking levels every 20 days as the small uptick in travel is rethinked for closer, more secure, car travel destinations. The outlook for a reversal in an uptick is increasing as California, Texas, and Florida take steps to heal their hemmoraging patients on the operating room table. West coast , Cental and Southeast coast travel are very crucial to this industry for revenue.

July 7 2020
“Last week, the Treasury Department announced that American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines, and Spirit Airlines have signed letters of intent setting out the terms on which Treasury is prepared to extend loans under the CARES Act.  We welcome the news that Alaska Airlines, Delta Air Lines, JetBlue Airways, United Airlines, and Southwest Airlines have now also signed letters of intent. 

 It requires borrowers to provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation.  Participating borrowers must also commit to certain requirements under the CARES Act to maintain employment levels and limit employee compensation, dividends, and share repurchases.

In other Developments
 Upheavel at Medicare and Social Security, as the accountant's tool for measurment rises 15% in one year. Meaning a runaway train is gaining speed as it heads into the train station. What is need is an administration with a mandate to protect the system w/o regard for political and its lobbyist ramifications.

Results were mainly due to :
       The excise tax on high-cost, employer-sponsored group health plans (commonly referred to as the Cadillac tax) was repealed. 
     
        The Trustees changed several of their long-run assumptions in light of new analysis and data:  
          The total fertility rate was reduced from 2.0 to 1.95 births per woman.
          Consumer price inflation was reduced from 2.6 to 2.4 percent. 
          The real interest rate was reduced from 2.5 to 2.3 percent. 
          The disability incidence rate was reduced from 5.2 to 5.0 per 1000 covered workers.

The 75-year (2020-2094) actuarial deficit of the Social Security trust funds increased from 2.78 to 3.21 percent of taxable payroll since the 2019 reports. The 75-year actuarial balance is a summary measure that calculates the difference between the projected income and the projected costs of the trust funds as a percentage of taxable payroll.