4 ms·

I'm sure the employees would much rather have been laid off to stick it to the asset holders.

by birken 5y ago

manquer 5y ago
With weaker demand rents would have actually fallen a lot more than now. That in turn would have an impact on asset prices in the long term. Will it be fairer to employees ? I don't know, there will be lot more pain for employees without government intervention. However with Quantitative Easing or bailouts and COVID loans means the rich are not paying the same price as well, that is why rich are becoming richer, poor suffer either way.
- sangnoir 5y ago
  > With weaker demand rents would have actually fallen a lot more than now In this sentence, is "weaker demand" euphemism for mass homelessness?
  - diordiderot 5y ago
    It's amazing how sociopathic economics is without context
  - manquer 5y ago
    Not necessarily, demand in Bay Area for example is not really connected to homelessness all that much. While rents have dropped a bit here, it more likely to get 2 months rent free rather than actual drops. In a tough economy I would expect rents to drop and in turn asset prices as well. The 6 trillion pumped in has to go somewhere, if it’s not inflation of consumer goods, it is inflation of capital goods. This has made it incredibly harder for mobility and wealth inequality
missedthecue 5y ago
I have come to realize that many people are haunted by the constant fear that someone somewhere might be making a profit. I think it's a great thing and a credit to our institutions that millions of citizens of my country weren't evicted last March and April. Who cares if landlords got paid for rent or if a bank received a mortgage payment?
- daddylongstroke 5y ago
  >...Who cares if landlords got paid for rent... Hmmm...unfortunately, most landlords are people who own a single rental, often the one they lived in previously that they cannot sell. By not bailing out landlords (not speaking of institutional investors here that buy up distressed mortgages in cash by the hundreds), you've hurt average-earning middle income citizens. So yes, with the moratoriums, you've transferred wealth from a chunk of the middle class to a different chunk of the middle and lower class.
  - GFischer 5y ago
    Most landlords own a single rental, but most rental properties are owned by large companies (notably REITs like MAA that has over 100.000 properties)... So what you're saying is both true (in that it saves average-earning citizens) and false (most of the money went to large corporations like https://en.wikipedia.org/wiki/Mid-America_Apartment_Communities https://en.wikipedia.org/wiki/Mid-America_Apartment_Communit... ).
    - daddylongstroke 5y ago
      >...most of the money went to large corporations... As far as I know, no landlord, large or small got any bailout. Are you saying investor-landlords received some type of direct stimulus? If so, can you elaborate?

I'm sure the employees would much rather have been laid off to stick it to the asset holders.

by birken 5y ago

I'm sure the employees would much rather have been laid off to stick it to the asset holders.

With weaker demand rents would have actually fallen a lot more than now. That in turn would have an impact on asset prices in the long term. Will it be fairer to employees ? I don't know, there will be lot more pain for employees without government intervention. However with Quantitative Easing or bailouts and COVID loans means the rich are not paying the same price as well, that is why rich are becoming richer, poor suffer either way.

sangnoir 5y ago
> With weaker demand rents would have actually fallen a lot more than now In this sentence, is "weaker demand" euphemism for mass homelessness?
- diordiderot 5y ago
  It's amazing how sociopathic economics is without context
- manquer 5y ago
  Not necessarily, demand in Bay Area for example is not really connected to homelessness all that much. While rents have dropped a bit here, it more likely to get 2 months rent free rather than actual drops. In a tough economy I would expect rents to drop and in turn asset prices as well. The 6 trillion pumped in has to go somewhere, if it’s not inflation of consumer goods, it is inflation of capital goods. This has made it incredibly harder for mobility and wealth inequality

missedthecue 5y ago

I have come to realize that many people are haunted by the constant fear that someone somewhere might be making a profit. I think it's a great thing and a credit to our institutions that millions of citizens of my country weren't evicted last March and April. Who cares if landlords got paid for rent or if a bank received a mortgage payment?

daddylongstroke 5y ago
>...Who cares if landlords got paid for rent... Hmmm...unfortunately, most landlords are people who own a single rental, often the one they lived in previously that they cannot sell. By not bailing out landlords (not speaking of institutional investors here that buy up distressed mortgages in cash by the hundreds), you've hurt average-earning middle income citizens. So yes, with the moratoriums, you've transferred wealth from a chunk of the middle class to a different chunk of the middle and lower class.
- GFischer 5y ago
  Most landlords own a single rental, but most rental properties are owned by large companies (notably REITs like MAA that has over 100.000 properties)... So what you're saying is both true (in that it saves average-earning citizens) and false (most of the money went to large corporations like https://en.wikipedia.org/wiki/Mid-America_Apartment_Communities https://en.wikipedia.org/wiki/Mid-America_Apartment_Communit... ).
  - daddylongstroke 5y ago
    >...most of the money went to large corporations... As far as I know, no landlord, large or small got any bailout. Are you saying investor-landlords received some type of direct stimulus? If so, can you elaborate?