3 ms·

I'd prefer capital owners to hedge their risk appropriately.

by bsanr 7y ago

nate_meurer 7y ago
So would I. Maybe I should ask a different questions: would you give OP the same critique if they'd offered their tenants rent reductions instead of deferrals?
- salawat 7y ago
  That's absolutely what should happen actually (rent decrease coupled with price falls). There's no way that real estate prices can stay stable given the current environment. Prices should be going downward fast across the board, due to the drying up of overall chances to transact for most people. Without those opportunities to engage in business, what little business we can keep going should be kept going. I think the solution is somewhere in the realm of "pay what you can, and everyone keep adjusting prices down to keep as many people doing the necessary work that we can keep taking place." Trying to act like the securities depending on on pre-covid conditions mean anything now is like clutching a Reichsmark or Confederate dollar and expecting a satisfactory exchange with a vending machine. The apparatus simply won't support it. The social structure that backed that store of value isn't there. I think when we look back on this, this pandemic may be quite literally the transition point in Market philosophy moving forward. I'm not sure what it'll look like, but I know if I had a choice in what to hand down to those coming after me, it would be a reset in which those that come after me can have a chance to build up what my parents and grandparents had the chance to. Maybe I'm just resigned to being the Lost Generation v.2; but the Gilded Age nonsense we've been cruising with up until now needs to stop; both in a normative moral sense, and in a pragmatic, people need to not be sacrificed so the inequality created by current market structures can be perpetuated. Tear down/stop the pumps trickling wealth up, dump value back in the bottom, let people sit on what productive assets they are physically using, and let people adapt to this new physical threat. We'll figure out the rest in time. Frankly, the people worrying about a transition to a command economy should realize we were already in one. It was just one where the top 1% were accountable to no one, and growth numbers were what was being optimized for even if there wasn't any net benefit to society at large. See the increasing frequency of corporate malfeasance (Boeing, opioid epidemic, Telcos, PG&E etc) if you really don't believe that everything was reaching the point of too big to fail. We just needed something like this pandemic to happen in order for everyone's physical survival to decouple from the economy's idea of survival to ram the point home. Around each and every person is the corpse of an industrialized society. We need to figure out what the hell to do with it to maintain carrying capacity. Then we need to just do it. Ugly times these. Ugly times indeed.

I'd prefer capital owners to hedge their risk appropriately.

by bsanr 7y ago

I'd prefer capital owners to hedge their risk appropriately.

So would I. Maybe I should ask a different questions: would you give OP the same critique if they'd offered their tenants rent reductions instead of deferrals?

salawat 7y ago
That's absolutely what should happen actually (rent decrease coupled with price falls). There's no way that real estate prices can stay stable given the current environment. Prices should be going downward fast across the board, due to the drying up of overall chances to transact for most people. Without those opportunities to engage in business, what little business we can keep going should be kept going. I think the solution is somewhere in the realm of "pay what you can, and everyone keep adjusting prices down to keep as many people doing the necessary work that we can keep taking place." Trying to act like the securities depending on on pre-covid conditions mean anything now is like clutching a Reichsmark or Confederate dollar and expecting a satisfactory exchange with a vending machine. The apparatus simply won't support it. The social structure that backed that store of value isn't there. I think when we look back on this, this pandemic may be quite literally the transition point in Market philosophy moving forward. I'm not sure what it'll look like, but I know if I had a choice in what to hand down to those coming after me, it would be a reset in which those that come after me can have a chance to build up what my parents and grandparents had the chance to. Maybe I'm just resigned to being the Lost Generation v.2; but the Gilded Age nonsense we've been cruising with up until now needs to stop; both in a normative moral sense, and in a pragmatic, people need to not be sacrificed so the inequality created by current market structures can be perpetuated. Tear down/stop the pumps trickling wealth up, dump value back in the bottom, let people sit on what productive assets they are physically using, and let people adapt to this new physical threat. We'll figure out the rest in time. Frankly, the people worrying about a transition to a command economy should realize we were already in one. It was just one where the top 1% were accountable to no one, and growth numbers were what was being optimized for even if there wasn't any net benefit to society at large. See the increasing frequency of corporate malfeasance (Boeing, opioid epidemic, Telcos, PG&E etc) if you really don't believe that everything was reaching the point of too big to fail. We just needed something like this pandemic to happen in order for everyone's physical survival to decouple from the economy's idea of survival to ram the point home. Around each and every person is the corpse of an industrialized society. We need to figure out what the hell to do with it to maintain carrying capacity. Then we need to just do it. Ugly times these. Ugly times indeed.