> There are many ways of mitigating the harmful effects of the lock down. State aid targeted directly towards individuals (and not corporations) is a good idea, I think. The same goes for a freeze on mortgage payments, rents, evictions etc.
I think it's a bad idea to have people with little understanding of economics, but a high sense of moral superiority, fix the problems they create through their incompetence. Politicians are the last people you want doing this.
Freeze evictions? Landlords go bust. Freeze mortgages? Mortgage servicers go bust. Now what? Mortgages when created are aggregated into securities with guaranteed contractual payments. No payments? What happens to the securities and the organizations that own them? Banks, pensions, retirement accounts, etc? What happens to the mortgage market and the young family who needs to buy their first home?
Actions have consequences. It's nice to have ideas over the internet, but reality is a bit more complicated.
> I think it's a bad idea to have people with little understanding of economics, but a high sense of moral superiority, fix the problems they create through their incompetence.
Not sure who you're referring to here.
> Freeze evictions? Landlords go bust. Freeze mortgages? Mortgage servicers go bust.
Corporations are legal fictions that do not have a right to life. Let them go bust and save the individuals working for those corporations. Once the crisis passes, they will re-create the legal fictions and continue their work.
> Mortgages when created are aggregated into securities with guaranteed contractual payments.
This should probably not have been allowed to happen in the first place.
In general valid replies to your comments are easily available. Your condescension is, however, tiresome, so I will not pursue this thread any further.
It's easy to dodge the questions and act morally superior when you don't personally have to make the hard decisions or accept responsibility for the consequences. Others don't have that luxury.
These are all problems caused by the economic system.
If an economic system can't cope with a relatively minor external stressor - and Covid is not nearly as dangerous or destructive as some stressors - then the problem is with the economic system.
Actions do indeed have consequences - and trying to use the wrong tool for the job because you can't imagine a better tool is possible is not a wise action.
> These are all problems caused by the economic system.
What problems? There are no major structural problems yet. There will be major structural problems if OP's ideas are implemented because they're not sound. That's not related to the economic system, that's related to OP's ideas.
I think it's a bad idea to have people with little understanding of economics, but a high sense of moral superiority, fix the problems they create through their incompetence. Politicians are the last people you want doing this.
Freeze evictions? Landlords go bust. Freeze mortgages? Mortgage servicers go bust. Now what? Mortgages when created are aggregated into securities with guaranteed contractual payments. No payments? What happens to the securities and the organizations that own them? Banks, pensions, retirement accounts, etc? What happens to the mortgage market and the young family who needs to buy their first home?
Actions have consequences. It's nice to have ideas over the internet, but reality is a bit more complicated.