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[–]magnora7 5 insightful - 2 fun5 insightful - 1 fun6 insightful - 2 fun -  (0 children)

That's insane. And the landlords aren't getting paid, so they're going to default on their mortgages too.

It's like Jon Stewart said in 2008... why bailout the banks when you could just bail out the loanholders, which would make the whole system solvent again, at a fraction of the cost of pumping up the stock market, because it addresses the base assets rather than the derivatives?

Apparently the Federal Reserve's answer to this was "It creates a moral hazard".

But them somehow giving literally trillions to their buddy banks for completely failing, is not a moral hazard? They're literally incentivizing failure at the trillion-dollar level with these giant banks, who now price these bail-outs in to their expected budgets! The whole thing has gone off the rails and could be fixed with a little but of unconditional basic income. That $1200 everyone got, should be every month until the end of the year. And that money comes out of what would be given to the banks, since that money will immediately go towards paying rent and mortgages anyway!

It's ridiculous!