The entire place of landlords in the economy is to absorb risk for banks and skim off the top. A pandemic and eviction moratorium are part of that risk. The fact that they don't understand this and think that being a landlord is just free money is ridiculous.
I've also had the thought that the use of pro small business policies by the bourgious parties and banks are a way to create a massive army of reactionaries.
Like the black owned business investment fund by Goldman sachs. Creating thousands of new black little capitalists is a solid way of preventing the BLM current from going farther left.
It sounds like it helps average everyday folk but in the end itll only help a few with the added negative of creating new reactionaries.
That’s a really interesting mechanism to mitigate risk. Is it the default risk where tenants who can’t pay rent would possibly also default on mortgage if they had purchased?
Exactly, they're very foreclosure averse because it costs a bunch in legal fees and other expenses and loses them a ton of interest money. In some states foreclosure can also be a 4+ year long legal process that mostly happens on the bank's dime. Then they now become in charge of upkeep on the house as well as selling it, typically at a discount from its actual market value.
Banks really like sure things, that's why they have switched to consumer debt products after 2008. When they give you a credit card the limit is typically a number they predict that you can max out and comfortably pay interest on forever. Low risk of default but nearly guaranteed interest money from the customer and guaranteed interchange fee money from merchants.
The entire place of landlords in the economy is to absorb risk for banks and skim off the top. A pandemic and eviction moratorium are part of that risk. The fact that they don't understand this and think that being a landlord is just free money is ridiculous.
I've also had the thought that the use of pro small business policies by the bourgious parties and banks are a way to create a massive army of reactionaries.
Like the black owned business investment fund by Goldman sachs. Creating thousands of new black little capitalists is a solid way of preventing the BLM current from going farther left.
It sounds like it helps average everyday folk but in the end itll only help a few with the added negative of creating new reactionaries.
Black capitalism is why I feel the Tulsa Massacre is held up high especially lately.
Tulsa Massacre seems to me to be a repudiation of the case for black capitalism, but I guess it's all in how the history is presented
very good point!
That’s a really interesting mechanism to mitigate risk. Is it the default risk where tenants who can’t pay rent would possibly also default on mortgage if they had purchased?
Exactly, they're very foreclosure averse because it costs a bunch in legal fees and other expenses and loses them a ton of interest money. In some states foreclosure can also be a 4+ year long legal process that mostly happens on the bank's dime. Then they now become in charge of upkeep on the house as well as selling it, typically at a discount from its actual market value.
Banks really like sure things, that's why they have switched to consumer debt products after 2008. When they give you a credit card the limit is typically a number they predict that you can max out and comfortably pay interest on forever. Low risk of default but nearly guaranteed interest money from the customer and guaranteed interchange fee money from merchants.
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