Now that the politicians have failed to get a stimulus package completed before the election, there is the potential for a perfect storm. Here is the scenario:
Prior stimulus package set to expire 12/31/20
Stimulus packages passed earlier in the year will expire 12/31/20, leaving those affected financially by COVID 19 with no protection, very vulnerable, and without a safety net. Remember, over 60 million people have filed for unemployment benefits since this whole thing started.
NO Extension of Stimulus
Without an extension of a stimulus of some kind, Americans and our economy are incredibly vulnerable.
It Takes Time to Transfer Power to a New Administration
A Biden Presidency would not be able to make decisions until late January. Further, it will take some time to implement new relief measures. Americans living unemployment check to unemployment check don't have the luxury of time. We could be looking at a gap of time 2 to 3 months.
President Trump and the current Congress would be useless to get anything done with a new administration coming into office.
There is precedent for this type of problem. The nation was in a financial crisis back in 2008 when President Obama took his first term. The economy was surviving on bailouts and stimulus packages during election time. The country needed leadership following the election. Meantime, President Bush was a lame-duck President. The market dropped roughly -30% between November and February 2009. The economy was in a bad place.
I have always felt that there are consequences for the politicians playing politics with the much-needed stimulus. Of course, politics only serves the politicians' interests and not the people they are sworn in to serve.
Keep in mind; this is just one scenario. This is going to be a long seven days with twists and turns and unexpected surprises. Meanwhile…..the clock is ticking.