So here’s a question. Do you think our government should provide a moratorium on mortgages during this virus or not?
If so, how is this different than back during the housing crisis of 2009 many piggs were saying we should just let people lose their homes who can’t make mortgage payments?
Personally, imho this time is different in that many people could not “prevent” this thing from happening and it wasn’t an issue about moral hazard. So if that’s the case, I don’t anticipate a sudden wave of panic selling, except maybe in places where the recovery would take longer than average.
That, our everyone sues China. They have money :).[/quote]
Yes. I agree that this is a different scenario. If big banks are getting a stimulus package b/c of the coronavirus, it should be attached with the condition that the average joes should also benefit from it in the form of payment deferment. In the near term this is how I see it’s going to play out:
– stock markets are going to go side-way, but once the virus is “dealt” with it will be a quick recovery (the small potatoes are probably screwed but the warren buffetts and ackmans of the world will swoop in for the deep discounts)
– employment is going to be bad. If companies feel the need to lay off people then it’ll take them some time to stabilize to start growing again. My guess is it’s going to be bad for the next 2 years or so?
– housing will see a down tick. This virus not only inflict major damage to the world’s economies but also to the psychology of the people. Once this is over, people will be hoarding cash.
I am feeling a lot more optimistic today than a few weeks ago now that our gov’t (fed, state and locally) finally shows some leadership.
