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Suspending mortgages and interest is absolutely the economically right way to handle this sort of crisis. You essentially want the economy on hold for 6 months

Suspending mortgages and interest is absolutely the economically right way to handle this sort of crisis. You essentially want the economy on hold for 6 months, and then to come back at the end as if nothing happened.

wjnc 7y ago
Tbh suspending interest payments as well would kill already struggling Italian banks. For those countries with the appropriate finances, subsidizing this in the long run would indeed be a good way to handle this. Europe would probably allow it even though it's state subsidy of banks (unless some other mechanism is enacted). But the Italian government isn't in that sort of financial situation. I expect a future upward interest shock since the country will lose capacity driving their debt to GDP even higher.
- 6510 7y ago
  Kicking people out of their home to save the banks has been tried.
- misja111 7y ago
  Many Italian banks were being kept alive by the government already, so this is effectively the Italian government sponsoring house owners.
mrec 7y ago
No word on similar relief for renters though, which makes me a bit suspicious about their motivation.