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More than half of American retailers didn't pay their rent in April and May

businessinsider.com

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Re: More than half of American retailers didn't pay their rent in April and May

#51

Post by chkaloon »

icedchai wrote: post #47
chkaloon wrote: post #34

I am afraid we are in a real Wile E Coyote moment here. You know, where he's suspended in air for a few seconds before he goes crashing to the ground? Our crash may come in the fall when UI payments stop and the rent floats become unsustainable. About the time the second wave hits. https://66.media.tumblr.com/bbbf0aec68490ae2679ef489709c3d18...

I wouldn't worry about it: it's an election year. Those UI payments will just get extended another 6 months.

Not if Mitch can help it, unless, of course, his eventual KY challenger starts climbing in the polls.

Re: More than half of American retailers didn't pay their rent in April and May

#52

Post by ohyes »

chkaloon wrote: post #34

I am afraid we are in a real Wile E Coyote moment here. You know, where he's suspended in air for a few seconds before he goes crashing to the ground? Our crash may come in the fall when UI payments stop and the rent floats become unsustainable. About the time the second wave hits. https://66.media.tumblr.com/bbbf0aec68490ae2679ef489709c3d18...

This is an interesting analogy because the roadrunner just runs without looking and everything works out fine.

Wile E. Coyote only has problems because he is aware of what a huge mistake he’s made.

I don’t know what the behavior analogous to road runner is in an economic sense. Perhaps suspending capitalism? I can’t imagine anyone going along with that.

Re: More than half of American retailers didn't pay their rent in April and May

#53

Post by opportune »

aazaa wrote: post #37

> Bed Bath & Beyond, Famous Footwear, H&M, and the Gap, AMC and Regal movie theaters, and 24 Hour Fitness gyms have all missed payments, jeopardizing the stability of their property management companies and municipal governments that rely on property taxes, The Post's Heather Long reported. All roads lead to the Federal Reserve. Stores defaulting on rent payments starves landlords for cash. Landlords unable to servic…

Depreciation (writing off a loss on the fed balance sheet) might cause a lot less problems than you think. Recessions like this are already deflationary. Plus global economic slowdowns increase demand for dollars

Re: More than half of American retailers didn't pay their rent in April and May

#54

Post by rwmj »

AnimalMuppet wrote: post #41
rwmj wrote: post #32

Earlier quoted context omitted.

> Renters stop paying their rent so landlords go broke. Landlords stop paying their mortgages But I said in my question: "if we suspended mortgage repayments for N months and rental payments for N months" Landlords are not paying their main cost (the mortgage) so why do landlords go broke? They have some fixed overheads but those are usually a few % of the mortgage.

That doesn't help the mortgage holders, though...

The normal way payment holidays work is the missing months are added at the end, and the interest (historically incredibly low at the moment) accrues as normal. So the mortgage holders are not really out of pocket here. Nor are the landlords since they can charge another tenant at the extended end of their mortgage term.

Re: More than half of American retailers didn't pay their rent in April and May

#56

Post by stormbrew »

ohyes wrote: post #52
chkaloon wrote: post #34

I am afraid we are in a real Wile E Coyote moment here. You know, where he's suspended in air for a few seconds before he goes crashing to the ground? Our crash may come in the fall when UI payments stop and the rent floats become unsustainable. About the time the second wave hits. https://66.media.tumblr.com/bbbf0aec68490ae2679ef489709c3d18...

This is an interesting analogy because the roadrunner just runs without looking and everything works out fine. Wile E. Coyote only has problems because he is aware of what a huge mistake he’s made. I don’t know what the behavior analogous to road runner is in an economic sense. Perhaps suspending capitalism? I can’t imagine anyone going along with that.

A complete rent, mortgage, and property tax holiday/pause for the duration of the emergency, along with universal income assistance at the individual (not corporate) level.

As is, only some of those things were done in some places, which almost certainly leads to conflict.

Re: More than half of American retailers didn't pay their rent in April and May

#57

Post by 5ociety »

AnimalMuppet wrote: post #48
5ociety wrote: post #16

Earlier quoted context omitted.

and whose better at designing systems than you and me?

Unless you're an expert at designing systems as complicated as the entire economy, maybe a lot of people.

because they're doing such a good job?

Re: More than half of American retailers didn't pay their rent in April and May

#58

Post by chkaloon »

stormbrew wrote: post #56
ohyes wrote: post #52

Earlier quoted context omitted.

This is an interesting analogy because the roadrunner just runs without looking and everything works out fine. Wile E. Coyote only has problems because he is aware of what a huge mistake he’s made. I don’t know what the behavior analogous to road runner is in an economic sense. Perhaps suspending capitalism? I can’t imagine anyone going along with that.

A complete rent, mortgage, and property tax holiday/pause for the duration of the emergency, along with universal income assistance at the individual (not corporate) level. As is, only some of those things were done in some places, which almost certainly leads to conflict.

Problem is, there's always two parties in every transaction. Holiday for the rent payer is a death knell for the landlord. Mortgage holiday is the same for the bank and its bondholders/depositors.

Re: More than half of American retailers didn't pay their rent in April and May

#59

Post by fooey »

chkaloon wrote: post #51
icedchai wrote: post #47

Earlier quoted context omitted.

I wouldn't worry about it: it's an election year. Those UI payments will just get extended another 6 months.

Not if Mitch can help it, unless, of course, his eventual KY challenger starts climbing in the polls.

I think the GOP is more likely to start trying to implement austerity measures than they are to try to help people.

They've been building up a drum beat about debt and deficits over the last several weeks

Re: More than half of American retailers didn't pay their rent in April and May

#60

Post by masnaox »

aazaa wrote: post #37

> Bed Bath & Beyond, Famous Footwear, H&M, and the Gap, AMC and Regal movie theaters, and 24 Hour Fitness gyms have all missed payments, jeopardizing the stability of their property management companies and municipal governments that rely on property taxes, The Post's Heather Long reported. All roads lead to the Federal Reserve. Stores defaulting on rent payments starves landlords for cash. Landlords unable to servic…

you forgot where the fed gets their money.

yes, it all goes to the fed, then to the tax payers.

and all that bounce back to where it began, and the 1% uses it to either buy realstate or save the money in a way its immune to the incomming inflation, making things worse in the long run

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