“A bail-in would have to happen, or it’s going to be the worst-case scenario,” said David Cote, a senior fellow at the Center for Responsive Politics and a longtime observer of bailouts.
“They’re going to have to cut all the benefits, they’re going, and they’re doing it by cutting the payroll.”
Cote added that, “The real question is, what is the cost?
What is the effect on the economy?
The cost to the economy, in the long run, is going to go up, and that’s going go up with this bail-out.”
According to the CBO, in 2019, a total of $7 billion in federal and state spending would be cut, leaving a $4.6 trillion gap in the economy.
Cox also pointed to the impact of the “Covids Project,” which would be announced Thursday.
Covill is a company that helps banks and insurance companies predict the effects of infectious disease outbreaks.
“They have been tracking the virus,” Cote said.
“So if the virus spreads to the United States, then the risk to the financial system and the rest of the world is huge.
The question is how do we deal with that risk?”
As Bloomberg reported in March, Cote’s research into the health impact of pandemic outbreaks, including coronavirus, showed that the financial impact of a pandemic was about $1 trillion a year, according to the Centers for Disease Control and Prevention.
“This is a good idea.
They need to be able to make a decision,” Cot said.
“The question is: What are the costs?
The costs to the country, in my view, are going to rise.
I think they should do it.
They should do this quickly, and I don’t think it’s a bad idea.”
In addition to cutting workers, Cotes said, the bailout would also force banks to cut investments in medical research, which would affect the future health of the economy and the health of people.
“We don’t want to have the same financial problems we have today,” Cotes added.
The bailout would come amid a broader push to cut the costs of financial products, including mortgages and auto loans, in a country that has been hit by the Great Recession.
Last week, the Federal Reserve announced that it would be raising interest rates by the most since 2009, potentially adding to the pressure on banks.