8 ms·
What happens to the people living on fixed income from the dividends of those bonds backed by those mortgages? This is why I think some of the European countri
by matwood 7y ago
What happens to the people living on fixed income from the dividends of those bonds backed by those mortgages?
This is why I think some of the European countries have the right idea. Don't stop people from paying rent or mortgages, instead give all those who lost their jobs some percentage of their income until this is over. This lets people continue paying their bills so all of the second, third, and forth order effects keep happening.
It's like the pig farmer story out of Las Vegas. Once the strip shut down along with all the buffets, the local pig farms lost their primary source of food (buffet throwaway). Now the farmers are struggling to find enough food which may end up impacting the pork market.
- xxpor 7y agoWhat happens to the bondholders when the landlords evict the restaurants for not paying rent, thereby guaranteeing there won't be rental income for a year+? Someone's going to have to suck it up. In this case, it is the bondholders. It's not a risk free investment.