Crying for another bailout, which will bring financial pain to a broad swath of the country, instead of concentrating it where it’s most deserved.
Does anybody remember the term “moral hazard”? Buehler? ANYONE?
Turn it into prison space.
I smell another too big to fail event.
Last time, when they gave out ~2T in bailouts, even though those loans were repaid, that additional 2 trillion became part of the baseline budget, i.e., you’d think the next year’s federal budget wouldn’t have to start from +2T but it did and remained thereafter.
Same happened recently w/COVID spending which was probably worse since your state kept its covid funds in their baseline.
Too many Communists, Socialists in power, crippling fuel, WFH much more significant thanks to COVID-19(84)...plus who really wants to travel into cities any more?
I got tired of potholes and orange/white barrels.
Not to mention city earnings tax on top of the extra gas and drive.
If the right job came along (I suppose) and I got my cars back to 100%.
I have confidence in pResident Potato to do further damage to the economy and the Treasury Department via wanton spending
Better to let the market sort itself out.
It’s not a bailout of the commercial market.
It’s a scheme that ends with saving Big City marxists and their unions
Government is not the answer
Remember the adjustable mortgage rates of the 1970’s and early 80’s? A fixed rate was unavailable during that time....a time of inflation.
Repeat, but worse coming??
We didn’t have a national debt in the trillions then. It was in the billions.
This is far worse than 2008.
An aside, I am never going back to an office.
There are millions in agreement with me.
So if it means letting the commercial real estate owners getting foreclosed and banks going belly up then I am all for a bailout.
If it means allowing current investors to hold onto their real estate that they leveraged too high to cover for a downturn, then NO I am not for it. If it means the banks that wrote the risky financing get made whole then NO I am not for it.
Sure explains why bank CEOs like Jamie Dimon have been so vocal, forceful and adamant about employees needing to return to the office.
This is what needs to happen:
If commercial office loans aren’t performing, banks need to seize and sell off the underlying assets. Other real estate managers will buy these properties from the banks manage them anew—or perhaps redevelop them as residential properties.
That is how the system is supposed to work and would work, if left to go through the intended process.
Otherwise, losers are rewarded, the moral hazard of careless bank loans is increase, and more responsible lenders are not relatively rewarded.
If some banks go under, so it goes. That is how the rest of the economy works.
An apt metaphor is a forest in which neither fires nor cutting of underbrush are allowed until full conflagration comes.
The wealthy win no matter what and the middle class and poor pay for it.
LET THEM FAIL !
They can (and will) bail out the banks, but how can they bail out the (Democrat) cities?
NYC commuters were earning about 2 x as much as the average NYC resident. I paid a lot of taxes when I worked there. (I utilized minimal services and I couldn't vote there, as well.)
Access to features of the city like Broadway shows and museums is nice, but it is not worth as much as as the convenience of remote work and personal safety.
Will most US cities turn into Detroits?
The problem is that cities are obsolete.
The real estate is just no longer required
building -> limited partnerships of rich people -> fancy ‘art studios’ for rich people -> condos for themselves
Prime metropolitan real estate commands $300 to $1000 per square foot.
SOHO in NYC was converted from factory space to artist space to prime residential.
What the difference between an ‘art studio’ and an apartment? A fold-out couch.
The solution to this problem is simple. It’s called failure. Life goes on. People and businesses recover, perhaps in another form. You can’t have capitalism without loss. It has never been the case that investing only has winners. It’s great when both sides of a transaction benefit, but without loss there is no lesson for improvement.
What part of ESG, BLM, defund the police, COVID 19 lockdowns did these guys not back to the hilt?