XPost: fl.politics, houston.politics, tx.politics
XPost: az.politics, alt.abortion

COVID may last 4 months to over 12 months if we don't do things right. All this
equity should not be destroyed as people continue to earn passive incomes on debt
and rent, while no active revenues are being produced by many companies.

It will not harm the economy any worse to stop all debt and rent payments until COVID passes, will it? How?

The Republican borrowing and lending to corporations who pay their debts to passive income holders, and could just have a stay, is a curious way to spend the
taxpayer's trillions. Though to the extent those sometimes risky trillions are coming back, that lending won't increase the National Debt. Easy credit isn't spending as much as pure spending, but if that's how it is, it sure makes it sound
like a lot more than it is. - Yet why aren't JC Penny and Neiman Marcus borrowing
from the government's $3 trillion credit package?

Yet new borrowing should not be subject to such a stay.

It should be clear, the fact that clothing or any companies were weak before COVID
is not an excuse to let COVID push them over the brink!


Why should people pay their savings, to the rent on their apartments or to their
mortgages, during COVID?


At the least forbearance on some industries like clothing companies - which have
failed and are failing, and Airlines, which are no doubt the brink of bankruptcy.

Medical companies and essential companies may benefit from COVID. Might health insurance companies fail?

Are there essential industries, that yet aren't being used during COVID, that merit the most protection?


And there is the rent of consuming food without pay, spending down your savings.


It should all be on the government. Not on the economy. The economy crashes because the National Debt is defaulted upon, is not what's going to happen. The
National Debt will not be defaulted upon at $40 Trillion. How high above this it
could go, deserves analysis. You just pay the debt by issuing more debt, that's
the way funny money works. And fiat money is what our basis is.

[Greece doesn't have its own central bank, and is like a State, like if California
kept issuing bonds. Before default became impossible for Congress the inflation
and rates would have gone up, and the Fed and Congress are fully in control of adjusting the National Debt in any which way they want in such a crisis, such as
moving rates to 0% just on that debt, while rates on everything else may be high
possibly. This is a time of National Security. Of course, if it wasn't a debt driven society, how would the Fed stop inflation? Like if the Fed has no bonds to
sell, how would the corporate bond rates be higher? Can the Fed create bonds, and
sell them at a high rate, just as it creates money and buys Congress's bonds at a
low rate. Probably theoretically, just like it creates money. However the issue
is what we do today, and default however theoretical, isn't going to happen on $40
Trillion. Okay, so the Fed buys Congress' bonds at a low rate, and high price, and then raises rates, and sells them at a high rate and a low price. No theoretical crisis possible. The Fed appears all powerful. Anyway, a default if
possible would at worst be something we have to accept to save ourselves from COVID. But, yeah, it's good to know if it is possible.].

Again, a default on the National Debt would be an acceptable way to save ourselves
/ our country, from COVID, but 1) The Response to the Greek Example above, just proved it's not possible, and 2) we do still want to know it is a possibility if
it is, before going through with it anyway, we should make all decisions knowing
their implications and assessing how likely given the value of them. But, we're
not going anywhere near a default possibility so far, if it was possible, which it
doesn't seem it is.

So inflation would be the issue, but is not the issue here. After COVID, after the stay is lifted, there may be higher inflation, and resultingly higher rates at
the same Stock Market valuation. This means the economy won't be able to *grow*
as fast in the future. IF we don't want more inflation, we won't be able to issue
as much debt as a society as a whole, after COVID, to spend on purchase of capital
and labor, because we already issued the debt to spend on consumption = sales revenues, during COVID, yet we are concerned with the economy not *shrinking*, and
not having a *meltdown*, and a Great Depression (incidentally, requiring SPENDING
on WAR to get us out of it) right now. It's National Security already.


Tax revenues aren't necessarily going to be very high this year either.


And JC Penny can fail 12 months after COVID-19 is over, and not now.

Evictions stayed for one year after COVID is over, is demanded and imperative.

Except on new borrowing and new lending and new renting.

Allowing businesses to fail, isn't going to help the economy to grow. That is not
free market capitalism. That is madness.


If they're really such poor businesses, they can fail 1 year after COVID-19 is over I guess. ["I guess," cause don't you think it's better to protect all businesses, than to let potentially productive businesses fail. There could be another side to this, like ongoing languishing businesses, but if there is productive opportunity, wouldn't they switch into that, rather than letting them
fail beforehand. So that would be like all bonds are unsecured, thus could only
sue for liens, and any new debt issue or sale would have to pay the liens before
the company or owners could receive it, yet bankruptcies generally wouldn't be, and the company could keep trying. This is just a general contemplation though, not pertinent to COVID. What other sorts of business debt protection could their
be?].

The economy is not suddenly going to be at full steam, the day business doors open
once again, that they will have any money to pay their rents or their debts.


Then Congress or someone should protect credit reports from bad marks for non-payment. Renters can not just stop paying otherwise, or they will be 100% unable to get a lease in the future for their bad credit reports. The point of credit reports all goes to housing, and missed housing payments affect ability to
attain housing the most.
Landlords do not report monthly to credit agencies like bank credit cards. Rather
if there is a missed payment they 1)sue for eviction [-which goes to credit report], 2) could tell a future landlord when a reference is checked, 3) may report nonpayment to a credit agencies without suing? Which probably shouldn't be
allowed anyhow, as many landlords falsely charge tenants who have recently quit for disputed cleaning charges and the like. 70% of landlords are sphincters. That renters have to be able to sue, if subsequently denied housing, for non-payment during COVID-19.

Lenders should not be protected while paused industrious businesses fail. The burden should fall upon the lenders who's investments were at risk, and who will
recover their investments to whatever _normal_ degree after COVID-19, upon which
INTENT AND ABILITY to repay will resume, without consequence for non payment during COVID-19 at all, ever.

The lenders/creditors will get a BETTER RETURN on their investments back if they
hold on to them, rather than getting pennies on the dollar if liquidated due to COVID-19.

Lenders have passive incomes.

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