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The idea of the Paycheck Protection Program (PPP) was criticized early on by many in the Austrian school, like Peter Schiff, who immediately pointed out that everybody - whether they needed it or not - would be applying for the funding, that the government had no way to track where all of it was going, and that waste, fraud and abuse within the program would be rampant.Specifically, there was outcry among FinTwit and the financial world about asset managers (fancy words for ‘people who invest your money’) taking out PPP loans, since (1) many of them are already wealthy, (2) most “asset management” can be done remotely with near-zero interruption, (3) income for asset managers, derived from fees from managing money, likely wasn’t affected by lockdowns and (4) there was no indication equity markets, or other capital markets, would be shut down.As I pointed out on a now-defunct Periscope video I did in Summer 2020, the idea that asset managers needed bailout money was comical compared to hospitality and restaurant businesses that were forced to shut down completely, cauterizing their income streams and ruining their employees, who required day-to-day, in-person business for their take-home pay.
