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Germany is proving that you can do that. Businesses are not required to file for bankruptcy anymore (because of covid), they can just pretend everything is fine

Germany is proving that you can do that. Businesses are not required to file for bankruptcy anymore (because of covid), they can just pretend everything is fine and their banks do not need do depreciate their debt. Bubble alert is buzzing louder every day. If that exemption law will not be prolonged after end of September interesting things will probably follow

marcosdumay 6y ago
Pausing debt collection on a temporary disruption is a best practice, not some shady number-hiding. If the disruption happens to not be temporary, then it will be a problem (retroactively, so a huge one). But in that case, there are more pressing issues.
- JumpCrisscross 6y ago
  > Pausing debt collection on a temporary disruption is a best practice Pausing collections is fine. Pretending those loans are still performing is an exercise in fantasy.
- munk-a 6y ago
  A large proportion of those debt collectors are gigantic soulless corporations that nobody would mind watching suffering somewhat - but that's the same as every industry. There are a lot of smaller property owners that are really hurting here and pausing debt collection might free those owners from debts but it won't put food on their table. This is, unfortunately, a very complicated problem.
  - WanderPanda 6y ago
    - A large proportion of those debt collectors are gigantic soulless corporations that nobody would mind watching suffering somewhat I would argue that in Germany this is not the case. Everyone minds the gigantic soulless corporations suffering, because only they have the unions deeply intertwined with politics and the sympathy of the media (for whatever reason, ad money maybe?). The Lufthansa bailout was clearly made to benefit the workforce and not the general population. This crises lifts the high-level corruption here in Germany to the next level it seems.
  - marcosdumay 6y ago
    Property owners will suffer anyway. Government help was supposed to alleviate that pain, but I doubt they'll receive any - another point for UBI. But forcing the debtors into liquidation when they could otherwise survive won't help anybody.

marcosdumay 6y ago

Pausing debt collection on a temporary disruption is a best practice, not some shady number-hiding. If the disruption happens to not be temporary, then it will be a problem (retroactively, so a huge one). But in that case, there are more pressing issues.

JumpCrisscross 6y ago
> Pausing debt collection on a temporary disruption is a best practice Pausing collections is fine. Pretending those loans are still performing is an exercise in fantasy.
munk-a 6y ago
A large proportion of those debt collectors are gigantic soulless corporations that nobody would mind watching suffering somewhat - but that's the same as every industry. There are a lot of smaller property owners that are really hurting here and pausing debt collection might free those owners from debts but it won't put food on their table. This is, unfortunately, a very complicated problem.
- WanderPanda 6y ago
  - A large proportion of those debt collectors are gigantic soulless corporations that nobody would mind watching suffering somewhat I would argue that in Germany this is not the case. Everyone minds the gigantic soulless corporations suffering, because only they have the unions deeply intertwined with politics and the sympathy of the media (for whatever reason, ad money maybe?). The Lufthansa bailout was clearly made to benefit the workforce and not the general population. This crises lifts the high-level corruption here in Germany to the next level it seems.
- marcosdumay 6y ago
  Property owners will suffer anyway. Government help was supposed to alleviate that pain, but I doubt they'll receive any - another point for UBI. But forcing the debtors into liquidation when they could otherwise survive won't help anybody.