This is a public health emergency so the primary answer is obviously public health. If we don’t address that then we are not even treading water. We will drown. So the first money should go to every healthcare facility, service and worker we can find.
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For better or worse we live in a consumer driven economy. The answer, stupid, is the healthy consumer. It’s not the businesses who want to sell to consumers. Giving money to consumers will buoy demand which will keep businesses afloat. Giving that money to businesses virtually assures that there will be no demand – just bloated banks and mega corporations with nothing to do except buy back their own common stock.
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This is crazy I know. But the way the Fed sees it, just like 2008, is that the banks are the vehicles for getting money into circulation to offset economic downturn. This is piling crap upon crap. This is an opportunity for the government to help consumers and small business owners get out of debt. Like FDR did in the 1930’s and 1940’s if we don’t have a viable vehicle to get money to consumers and small business owners then create one. Giving the money to banks and large corporations will only exacerbate the problem.
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As for lending, relaxing appraisal requirements is a license to sell fraudulent “mortgage backed” securities and fraudulent loan products that will fail — giving the sellers the opportunity to bet on failure. Where will this end?
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Relaxing underwriting standards only assures that more bad loans will be created and thus more bad offerings of “certificates.” How hard is it to understand that?
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Filed under: foreclosure |
As always, right on point. Be safe, we appreciate you
Amen
So right Neil. Please everyone write your representatives. All can learn from what is going on now.
No one cared until they are affected. Foreclosures will increase. They will spread like the virus. This time — we have to stand together.