The US Senate and the White House have reached an agreement on a $2 trillion relief plan to buffer the economy as fears of a deep global recession continue to mount amid the coronavirus outbreak.
RT’s Boom Bust is joined by Todd Horwitz of Bubba Trading to discuss the measure and its impact on financial markets.
Horwitz says that the stock markets’ positive reaction looks like a short-covering rally, and is not a big deal.
“Stimulus is not going to create growth,” he says, explaining that if people are going back to work that does not mean that “we are getting growth, it is not going to affect the companies’ earnings.”
“This is only another temporarily bandage that they are slapping out. No difference what the Federal Reserve is doing with these bandages they continue to apply, in the meantime accumulating massive amounts of debt which we’ll never get out of.”
The strategist says that the agreement will not change the situation and the market sell-off will continue.
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