Highlight of the Week
US Treasury to borrow a record $3t this quarter
- The money is being used in large part to subsidize economic rescue efforts in the wake of the coronavirus pandemic.
- The total US government debt is now near $25t, with the current fiscal year’s deficit running at $744 billion.
Coronavirus updates (as of Tuesday morning)
- COVID-19 has registered 3.6 million cases and 250,000 deaths worldwide. There are over 1.2 million recovered cases.
- The US has accounted for over 1.2 million cases and will surpass 70,000 deaths today. One updated model now predicts 135,000 deaths by August.
- Georgia has almost 30,000 cases and 1,246 deaths. A CDC report determined, “83% (of Georgia coronavirus patients) are black… the high percentage reflects patients’ occupations – the fact that African-Americans are essential employees in our system” (NYT).
Banks have extended $500 billion in PPP loans
- The SBA and Treasury Department said there is roughly $145 billion left in the PPP fund. The average loan extended in the second PPP round was about $79,000. Currently, some 30 million people are out of work due to the pandemic.
- The program has experienced numerous issues – technology problems, missing paperwork, the misdirection of funds – and will have to cover loans that were “hastily arranged”.