Monetizing a Financial Crisis’ Incubation Period is Bad Medicine

Coming this summer like it or not

With no fiscal priorities, mayhem will follow.

  • In growing economies people equate assets with cash and credit.
  • In shrinking economies people equate assets with expenses and debt
  • As the pandemic’s economic shutdown shrinks asset values, debt remains.
  • We are a country with declining income. As income shrinks, debt increases
  • Debt defaults trail income by at least 3 months, if not a year
  • In a few week’s we’ll have 3 months, March through May, of significant lost income.
  • Only money can make debt and tax payments. If you can’t sell assets, whether it be a sticky-bun in your shop or 30 Rockefeller Center, you default.
  • Bullshit jobs are easy to destroy and difficult to make
  • Most people are both creditors and debtors which is why it isn’t simple for every creditor during the pandemic to forgive loans.
  • Creditors lend money based on assets. To forgive any payment is to pass proportional value over the debtor. The creditor will always feel the debtor owes the money. The debtor will always feel the creditor accept a loss based on events the debtor could not control.
  • It may be better to take the asset backing the loan back and reloan the remaining value to someone else.
  • It is often psychologically easier to believe the property will one day earn its expected income while empty. It’s easier to lease out an empty space than an occupied one.

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