How many small businesses will survive a couple of months shuttered? How many tens of millions of jobs depend on those businesses? How many tens of millions of people will fall seriously behind on their mortgages or slide into crippling debt?
Exactly. How many folks have a mortgage requiring two incomes? A lot! At this point I see no way we don’t get out of this self inflicted mess without a 2008 style housing crisis. And when a housing slow down aftershock hits a Wu Flu Panic weakened economy it will be devastating.
There will be tremendous political pressure for one bailout after another in the coming years. Dems and statist GOPers must be licking their chops.
I think housing will hold up better than you think. Between massively expanded unemployment benefits + $1200/person + 500/kid and likely more relief, I think its likely most consumers have enough to keep them floating for quite a while. Plus, underwriting for home loans has been MUCH better this time around and large rental companies will be looking to buy assets on the cheap keeping a floor on most markets. I think this will make people think twice about upgrading to a new home, though, or putting their home on the market.