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That's a false equivalence. Landlords have huge equity advantages that the renters do not. That said, I agree, we should be deferring mortgages and canceling r

That's a false equivalence. Landlords have huge equity advantages that the renters do not. That said, I agree, we should be deferring mortgages and canceling rents.

EGreg 7y ago
Here’s what I don’t get Everyone is paying downstream until you hit the lenders. What are the lenders’ costs? What if they pause repayment for 3 months and tack it on to the end of their loans? Presumably if all the lenders downstream did this, we could really hit pause.
- matwood 7y ago
  You think the lenders don't have anyone to pay? Many mortgages are packaged up into bonds [1]. Those bond coupon payments are often times what retired people are using for their fixed income to pay their bills. [1] https://en.wikipedia.org/wiki/Mortgage-backed_security#Market_size_and_liquidity https://en.wikipedia.org/wiki/Mortgage-backed_security#Marke...
  - EGreg 7y ago
    Alright, but didn’t we send those retired people checks? By the way this is another reason why UBI is good in a crisis. It creates a floor for people to buy food etc. while we suspend rent payments and mortgages for a few months. And with no disincentive to work like we have now. Anyway... so who do the retired people need to pay when everything is on pause? Social Security and Medicare cover a lot of the basics. If they have investments yielding enough for them to live on, then they have savings that they can use 0.5% of in three months. Not to mention, the stock market is down, we can pause bond yields for the retirees for a few months also. The only thing I wouldn’t pause is sovereign debt, since we can print money to service it and confidence in that is paramount. (Another reason why McConnell’s stance on letting states go bankrupt is dangerous. I would have liked to see states and cities have the ability to issue their own complementary currencies.)
AmVess 7y ago
That advantage only works at time of sale, and that only happens when there are people around that can buy what is being sold. Houses here were stacked ten high and ten deep for miles with foreclosure signs in front during the last recession; a lot of them stayed that way for a long time.
manigandham 7y ago
What's false about it? Equity only exists if they paid into it, and is no different than any other savings. Is it now unfair that some people have saved more cash than others?

That's a false equivalence. Landlords have huge equity advantages that the renters do not. That said, I agree, we should be deferring mortgages and canceling rents.

EGreg 7y ago

Here’s what I don’t get Everyone is paying downstream until you hit the lenders. What are the lenders’ costs? What if they pause repayment for 3 months and tack it on to the end of their loans? Presumably if all the lenders downstream did this, we could really hit pause.

matwood 7y ago
You think the lenders don't have anyone to pay? Many mortgages are packaged up into bonds [1]. Those bond coupon payments are often times what retired people are using for their fixed income to pay their bills. [1] https://en.wikipedia.org/wiki/Mortgage-backed_security#Market_size_and_liquidity https://en.wikipedia.org/wiki/Mortgage-backed_security#Marke...
- EGreg 7y ago
  Alright, but didn’t we send those retired people checks? By the way this is another reason why UBI is good in a crisis. It creates a floor for people to buy food etc. while we suspend rent payments and mortgages for a few months. And with no disincentive to work like we have now. Anyway... so who do the retired people need to pay when everything is on pause? Social Security and Medicare cover a lot of the basics. If they have investments yielding enough for them to live on, then they have savings that they can use 0.5% of in three months. Not to mention, the stock market is down, we can pause bond yields for the retirees for a few months also. The only thing I wouldn’t pause is sovereign debt, since we can print money to service it and confidence in that is paramount. (Another reason why McConnell’s stance on letting states go bankrupt is dangerous. I would have liked to see states and cities have the ability to issue their own complementary currencies.)

AmVess 7y ago

That advantage only works at time of sale, and that only happens when there are people around that can buy what is being sold. Houses here were stacked ten high and ten deep for miles with foreclosure signs in front during the last recession; a lot of them stayed that way for a long time.

manigandham 7y ago

What's false about it? Equity only exists if they paid into it, and is no different than any other savings. Is it now unfair that some people have saved more cash than others?