[EconProf]

When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.

[EconProf]

When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.

[EconProf]

When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.

[EconProf]

When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.

[EconProf]

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov’t check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov’t makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

[EconProf]

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov’t check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov’t makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

[EconProf]

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov’t check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov’t makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

[EconProf]

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov’t check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov’t makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

[EconProf]

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov’t check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov’t makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

[EconProf]

qwerty007:
I converted my money market fund into checking just to be overly cautious–there is maybe one in a thousand chances money market funds could be in jeopardy. But frankly, those odds are not good enough. Consider that every fire the Fed & Treas have put out results in euphoria for a day or two, then despair. Look at today’s market reaction. Besides, with T-bill rates falling to near zero, MM rates may be so low as to negate their original appeal.
This will be a dangerous week.

[EconProf]

qwerty007:
I converted my money market fund into checking just to be overly cautious–there is maybe one in a thousand chances money market funds could be in jeopardy. But frankly, those odds are not good enough. Consider that every fire the Fed & Treas have put out results in euphoria for a day or two, then despair. Look at today’s market reaction. Besides, with T-bill rates falling to near zero, MM rates may be so low as to negate their original appeal.
This will be a dangerous week.

[EconProf]

qwerty007:
I converted my money market fund into checking just to be overly cautious–there is maybe one in a thousand chances money market funds could be in jeopardy. But frankly, those odds are not good enough. Consider that every fire the Fed & Treas have put out results in euphoria for a day or two, then despair. Look at today’s market reaction. Besides, with T-bill rates falling to near zero, MM rates may be so low as to negate their original appeal.
This will be a dangerous week.

[EconProf]

qwerty007:
I converted my money market fund into checking just to be overly cautious–there is maybe one in a thousand chances money market funds could be in jeopardy. But frankly, those odds are not good enough. Consider that every fire the Fed & Treas have put out results in euphoria for a day or two, then despair. Look at today’s market reaction. Besides, with T-bill rates falling to near zero, MM rates may be so low as to negate their original appeal.
This will be a dangerous week.

[EconProf]

qwerty007:
I converted my money market fund into checking just to be overly cautious–there is maybe one in a thousand chances money market funds could be in jeopardy. But frankly, those odds are not good enough. Consider that every fire the Fed & Treas have put out results in euphoria for a day or two, then despair. Look at today’s market reaction. Besides, with T-bill rates falling to near zero, MM rates may be so low as to negate their original appeal.
This will be a dangerous week.

[EconProf]

Occams Realtor,

You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.

[Author]

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