Quote:
Originally Posted by The Porn Nerd
Repugs don't want to give another dime. $1200 and that's it suckers. That additional $600 goes away in a couple weeks, then the foreclosures and evictions begin....fun times ahead.
Thanks Trump!
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Depends on what is in the stimulus package. Here part of ours is that they made it so banks have to let you defer any loan or leasing payments free of charge specially to prevent people defaulting on loans.
They can't allow mass foreclosures because it will cause a domino effect that will take out the whole housing economy.
- Bank forecloses on house (or factory or whatever)
- Someone becomes homeless, bank doesn't need the house so they put it on the market
- Market is flooded with houses. Less buyers because banks not as willing to give mortgages. Supply and demand = housing prices fall
- Those that WERE paying their mortgage are now underwater and may walk away, compounding the issue further.
- Banks profit projections take a shit, because they are selling houses at a loss and not making profit from interest rates that they projected when giving those loans.
- Banks require bailout.
The least disruptive thing is to bailout the banks and make a moratorium on loan repayments.