More than half of American retailers didn't pay their rent in April and May
businessinsider.com
More than half of American retailers didn't pay their rent in April and May
1–10 of 227 posts
Re: More than half of American retailers didn't pay their rent in April and May
#2Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
Re: More than half of American retailers didn't pay their rent in April and May
#3Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
A collapse of the banks I suspect and having to rescue them again.
Re: More than half of American retailers didn't pay their rent in April and May
#4Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
This would make sense to me. Why are some businesses being shut down and have to deal with income losses and others like landlords can keep going and demand their income? This seems fundamentally unfair to me.
Re: More than half of American retailers didn't pay their rent in April and May
#5Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
It would probably be hard to find a rental during that period, as legally you wouldn't have to pay to occupy the space. Though landlords might be cash strapped enough to let you move in to get the down payment.
Re: More than half of American retailers didn't pay their rent in April and May
#6Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
As long as the people that did pay get theirs back.. that’s cool.
Re: More than half of American retailers didn't pay their rent in April and May
#7Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
This would make sense to me. Why are some businesses being shut down and have to deal with income losses and others like landlords can keep going and demand their income? This seems fundamentally unfair to me.
Ah, but comrade, paying rent itself is inherently unfair. It allows for profit off merely having bought something sooner than another had a chance to. If the rent stops now, why should the rent start back up?
Re: More than half of American retailers didn't pay their rent in April and May
#8Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
People who make a living by renting out a room/floor would need government assistance to survive.
Re: More than half of American retailers didn't pay their rent in April and May
#9Earlier quoted context omitted.
This would make sense to me. Why are some businesses being shut down and have to deal with income losses and others like landlords can keep going and demand their income? This seems fundamentally unfair to me.
Ah, but comrade, paying rent itself is inherently unfair. It allows for profit off merely having bought something sooner than another had a chance to. If the rent stops now, why should the rent start back up?
It should start up when the renter is not forbidden by government to make money to pay rent.
Re: More than half of American retailers didn't pay their rent in April and May
#10Purely as a thought experiment, if we suspended mortgage repayments for N months and rental payments for N months, what bad (or good) effects might we see?
The whole banking system would collapse like in 2007-2008 because "everyone stops paying mortgages all at once" is basically what happened then.
Renters stop paying their rent so landlords go broke. Landlords stop paying their mortgages. Mortgage-backed securities go into default. Anyone with lots of exposure to mortgage-backed securities folds. Their counterparties in all sorts of financial arrangements can't collect (insurance, bonds, you name it). Credit markets dry up, and all the Main Street businesses that are rolling over some of their debt find they can't borrow, so they file for bankruptcy. Normally, they'd take out loans to make it through bankruptcy and restructure... but no loans are available, so they liquidate.
EDIT: worth noting that this is less likely now than in '07-'08 because the Federal Reserve has been buying up bonds like crazy (that basically means financial institutions, governments and businesses are often able to get unlimited cheap credit) but if they scaled that back or stopped doing it, things are already so bad there would've been a credit crisis in March or April without a national rent/mortgage freeze. So imagine how much worse it would be with one.