When COVID19 eases up in Colorado, 450,000 renters could face eviction (2014, foreclosure)

[BornintheSprings]

Originally Posted by Westerner92

We could avoid this discussion as well as the implosion of the housing and non-essential service industries with a bottom-up bail out that's way cheaper than a top-down bailout, but I honestly wonder if the non-working class is even in touch with reality enough to realize it.

Totally agree with this. If the government was smart they would issue a ubi of 1500-2000 dollars a month for all adults. This would prevent an economic collapse and prevent a rental market implosion. Not to mention landlords would be guaranteed there rent.

[Therblig]

Originally Posted by Westerner92

We could avoid this discussion as well as the implosion of the housing and non-essential service industries with a bottom-up bail out that's way cheaper than a top-down bailout...

I don't follow.

[BornintheSprings]

Originally Posted by Therblig

I don't follow.

Bail out people not banks!

[Therblig]

Originally Posted by BornintheSprings

Bail out people not banks!

Okay.

I'm thinking the workable solution is somewhere in the both/middle area here.

[Westerner92]

Originally Posted by Therblig

I don't follow.

When rent gets paid, so does the landlord's mortgage. Businesses won't need as much bailout from the pandemic when their customers have income. In ordinary downturns caused by speculation bubble pops (and not external factors), maintaining demand by bailing out consumers is even more effective.

[Mike from back east]

Originally Posted by Westerner92

When rent gets paid, so does the landlord's mortgage. Businesses won't need as much bailout from the pandemic when their customers have income. In ordinary downturns caused by speculation bubble pops (and not external factors), maintaining demand by bailing out consumers is even more effective.

That's largely what FDR called the "percolator" method where putting money in at the bottom of the coffee pot (to unemployed workers) will see it spent immediately and thus percolate up through the economy. The worker buys food from Kroger, then Kroger pays General Mills, then General Mills pays ADM and the farm co-ops for wheat/oats, etc. The money quickly churns and percolates up through the economy, often changing hands multiple times with only one unit of "input" of money at the bottom.

The percolator method is the opposite of the "drip" method, aka trickle down. Giving factory owners money to make cars does no good if the working stiff has no money to buy the car thus the system stalls.

[Di3s3l_Pow3r]

How about the people that work? Shouldn’t they get a piece of the pie?

Also, What makes you think renters will pay the rent with the bailout money? They will pocket the money and buy crap and still don't pay rent

[Westerner92]

Originally Posted by Di3s3l_Pow3r

How about the people that work? Shouldn’t they get a piece of the pie?

Also, What makes you think renters will pay the rent with the bailout money? They will pocket the money and buy crap and still don't pay rent

So the millions of people that can't pay their bills because they were forced out of work against their own will aren't willing to work and won't pay their bills? What?

Those of us who still have jobs might as well get the same-sized piece of pie, but these trillion dollar bailouts for number shuffling corporations that actually think they're producing anything are a joke. We stopped producing decades ago. We're a demand driven economy.

[StealthRabbit]

All my renters still have their cable / dish TV

I toss their empty boxes for new bigger screen TV's.

I'm all for bringing back the CCC to restore our National Park infrastructure, and teach skilled trades to those interested in working. I thought that would have been a good plan in 2008, rather than bailing out the banks (more money to those who have plenty of money).

The bailout $$$ could have been given to my tax assessor so he could write me a check for what he considers my home is worth. Then I would have stimulated the economy with the cash, , And he could have too! (Resold the home).

Investment Rental properties is not where the money is.... It is just another (risky) place to stash some capital. The benefit is only in the tax code (depreciation), or if by chance there is equity appreciation. Just one of the many games we have to play in USA, as our tax structure needs to remain complicated enough to employ millions of accountants, IRS, lawyers, finance and banking staff. I foresee dramatic increases in rents for next cycle. Most of my renters stay 7-10 yrs, and I never have raised their rents to pass on increased taxes and insurance costs. They get 10% rebates each year if they have kept current. Not a wealth building scheme for me. I have sold my commercial and residential props to the tenant at screaming deals. Really helps the small businesses when they can buy a multi tenant building that is cash flowing positive so their space is free.

[BornintheSprings]

Originally Posted by Di3s3l_Pow3r

How about the people that work? Shouldn’t they get a piece of the pie?

Also, What makes you think renters will pay the rent with the bailout money? They will pocket the money and buy crap and still don't pay rent

How about instead of worrying about what a minority of people do we focus on helping the majority.