A reader asks about it, after offering good background:
This New York Times article shows a map of the United States with colors that indicate what percentage of the population is behind on rent since the Covid-19 shut-downs.
The federal moratorium on evictions is set to expire soon.
Not only are these renters going to possibly be homeless, but the landlords may end up in foreclosure.
There was a federal fund that was supposed to assist with rent, but the article states that only HALF of the 6.2 Million households behind on rent are even eligible and the application process is onerous. So far, very little of the money put aside for assistance has been paid out.
And the article doesn't even touch on homeowners who are behind on their mortgages due to shut-downs.
QUESTION: The narrative has been that the shut-downs were necessary. Will mass evictions and foreclosures play out on such a scale that more people will realize that the shut-downs were too costly?
I mean, what is worse? Dying of Covid-19 or being homeless?
I cannot read the article without subscribing (i.e. paying) so I have not. (I won't patronize the NYT. Too biased, slanted and hostile to objective journalism, although I do acknowledge many good exceptions occur, possibly in this case. Overall, it is a massive opinion board & a public relations agency for a major USA political party.
I support their activity one hundred percent, they are exercising a sacred right enshrined in the US Constitution.
I am exercising my same right to abstain.)
No matter, The Committee offers a reply from above human paywalls.
C: It is far better to live than die. This you already know, we understand your ironic intent with the final comment, and we sympathize.
The federal government will now step in, to attempt to soften the blow. Landlords are a far easier political target than mortgage lenders.
Firstly, because much of residential dwelling mortgage activity involves debt re-sold to investors after being packaged into bonds. Halting foreclosures will significantly and negatively affect institutional investors, who have influence and clout well above landlords of residential dwellings.
Secondly, mortgage lending is a vital component of any nation's economy; meddling with lender's abilities to foreclose overdue mortgages will cause a significant withdrawal of lending capacity. This will hurt the economy in material ways.
Thirdly, a significant amount of residential dwelling mortgage debt is held by the US federal government already, making it easier to handle the foreclosure problem than it seems, if solely institutional investors not part of the USA's federal or state governments, are considered.
Watch for more bailouts with newly printed money, and forgiveness, moratoriums and other measures on mortgages, in addition to leases and rentals.
Some observers will see costs of restricting human activity as too high, who did not see things this way previously but the wide spread of opinions & viewpoints will continue. The federal government realizes that bailouts will be a political necessity.