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I think the issue is cash-flow. So the govt should do things to mitigate cash-flow. Such as pause rent/mortgage payments for 2 months for anyone that is out of
by matt_the_bass 7y ago
I think the issue is cash-flow. So the govt should do things to mitigate cash-flow. Such as pause rent/mortgage payments for 2 months for anyone that is out of work due to this.
- kshacker 7y agoIt maybe works for mortgage as government deals with banks regularly. But what if you rented from an individual owner who needs your rent? Liberalized (without proving that you are looking for a job for let us say next 3 months) unemployment insurance may be a better solution that keeps the economy churning.
- matt_the_bass 7y agoI agree it’s not as simple as only mortgage freeze. But if the land lord needs the rent, probably that’s for their mortgage. But yes, I agree better unemployment insurance is a good idea.
- LeoTinnitus 7y agoA mortgage freeze would save the landlord and they wouldn't need the rent. If they need the rent when their mortgage payment is frozen, then they're not a good landlord. Chances are, they won't be a landlord for long when the lender calls the loan due as well. Let's not offload the onus on landlords personally responsibility to manage their finances. If they don't have a mortgage to pay, they'll get by just fine if they can't collect rent.
- tree3 7y agoAs that does is shift the cash flow problems to someone else.
- matt_the_bass 7y agoMy point is that cash-flow is the issue. And most Americans pay a substantial portion of their income towards housing. What does cutting the fed interest rate by 1% do for “typical” Americans? I don’t think it reduces day to day stress which in turn causes more problems. I don’t have a complete answer, but I feel like the answers that are given by the government are not the best answers and not the most effective use of funds.