The American Eviction Crisis: Countdown to Doomsday

[San Lumen]

For starters, if they can't afford the property taxes

costs them $0 to keep their house.

or can't afford the repairs to keep the property in good condition.

If someone's house becomes unfit for human habitation then we should probably just give them somewhere else to live, rather than force them out on the streets.

How are you going to do that?

[Vetalia]

If someone's house becomes unfit for human habitation then we should probably just give them somewhere else to live, rather than force them out on the streets.

But then you're back to square one...and deteriorating/abandoned houses aren't exactly going to be good for the rest of the neighborhood, nor would anyone want to have them nearby.

[Vetalia]

Yes, I'm wrong about that.

Honestly, we'd be better off if they were publicly owned...without adequate competition, of which there is none (in fact it's an oligopoly) the entire model is doomed to failure or more appropriately outright fraudulent ratings as were the case with the CDOs. Everybody knew they were complete dogshit but there was an incentive to rate them how the issuers wanted because that's how the ratings agencies made their money.

[Ethel mermania]

Yes, I'm wrong about that.

Honestly, we'd be better off if they were publicly owned...without adequate competition, of which there is none (in fact it's an oligopoly) the entire model is doomed to failure or more appropriately outright fraudulent ratings as were the case with the CDOs. Everybody knew they were complete dogshit but there was an incentive to rate them how the issuers wanted because that's how the ratings agencies made their money.

you have the same problem with accountancy, a company can shop around for an auditor who is a little less... diligent in their public auditing practice. I

The bond raters should have been jailed for that bubble. Remember the bailout money technically didn't go to the banks, it went to the guys who insured the bonds so they could pay off the claims against them (by the banks). And those rates were set by the rating of the bonds.

[Vetalia]

you have the same problem with accountancy, a company can shop around for an auditor who is a little less... diligent in their public auditing practice.

That is one I am personally very familiar with as I work in public accounting, specifically audit...with the wave of consolidations that happened in the 1990s and then the demise of Arthur Andersen, you have an effective oligopoly of the Big Four that has prevented there from being any real competition in the industry. Only a small number of SEC filers use other accounting firms and in many cases companies are required to be audited by one of the Big Four in order to secure loans. At a previous firm one of our clients was a commercial property firm and their tenant required them to have a Big Four audit of the property in order to sign the lease.

To a degree there is some protection via state accountancy boards and the AICPA, as well as vigorous competition at the non-public company level, but this is much less robust and effective for the Big Four. Most of the punitive damages for audit failures imposed by the SEC and others are a token measure that does nothing to address the fundamental problems with the structure of the industry. They have gotten away with the kind of negligence that would destroy a smaller firm, the most recent and egregious Wirecard fraud comes to mind.

The bond raters should have been jailed for that bubble. Remember the bailout money technically didn't go to the banks, it went to the guys who insured the bonds so they could pay off the claims against them (by the banks). And those rates were set by the rating of the bonds.

Absolutely, there was never any real action taken to punish those responsible for the global financial crisis. Hence why it's just a matter of time before it happens again, but even worse, and on top of that why the global economy has been on life support for the past 11 years.

[Diopolis]

This is also a problem with no easy solution.
The eviction moratorium has to expire, otherwise landlords will be stuck paying for a huge number of units with no rent getting paid on them(we forget that rent is very much a bubble but also very much goes somewhere- it has to pay for upkeep and maintenance, taxes, etc.). Predictably landlords will go under and then these apartments will simply fall apart with no one maintaining them. And they're apartments, so you can't just give them to the tenants and say fuck the landlords- you'd have to nationalize all of them.
On the other hand, there's going to be a heck of a lot of evictions as soon as the moratorium expires because a huge number of people have not paid their rent, owe it in a lump sum, and drank whatever rent money they had.
TLDR this wasn't thought through in the first place and was inevitable.

[Trollgaard]

This is also a problem with no easy solution.
The eviction moratorium has to expire, otherwise landlords will be stuck paying for a huge number of units with no rent getting paid on them(we forget that rent is very much a bubble but also very much goes somewhere- it has to pay for upkeep and maintenance, taxes, etc.). Predictably landlords will go under and then these apartments will simply fall apart with no one maintaining them. And they're apartments, so you can't just give them to the tenants and say fuck the landlords- you'd have to nationalize all of them.
On the other hand, there's going to be a heck of a lot of evictions as soon as the moratorium expires because a huge number of people have not paid their rent, owe it in a lump sum, and drank whatever rent money they had.
TLDR this wasn't thought through in the first place and was inevitable.

What if there was a debt reset...basically the government cancels all debt and then people go from there?

[Diopolis]

This is also a problem with no easy solution.
The eviction moratorium has to expire, otherwise landlords will be stuck paying for a huge number of units with no rent getting paid on them(we forget that rent is very much a bubble but also very much goes somewhere- it has to pay for upkeep and maintenance, taxes, etc.). Predictably landlords will go under and then these apartments will simply fall apart with no one maintaining them. And they're apartments, so you can't just give them to the tenants and say fuck the landlords- you'd have to nationalize all of them.
On the other hand, there's going to be a heck of a lot of evictions as soon as the moratorium expires because a huge number of people have not paid their rent, owe it in a lump sum, and drank whatever rent money they had.
TLDR this wasn't thought through in the first place and was inevitable.

What if there was a debt reset...basically the government cancels all debt and then people go from there?

It'd cause chaos to go whole hog with it, but it's a good idea to just hit a reset button on evictions- no back rent(or cap on back rent), and rent is due from here on out.

[Ethel mermania]

What if there was a debt reset...basically the government cancels all debt and then people go from there?

It'd cause chaos to go whole hog with it, but it's a good idea to just hit a reset button on evictions- no back rent(or cap on back rent), and rent is due from here on out.

And when the landlord doesn't pay the electric, water bill, and property taxes, what happens?

[San Lumen]

It'd cause chaos to go whole hog with it, but it's a good idea to just hit a reset button on evictions- no back rent(or cap on back rent), and rent is due from here on out.

And when the landlord doesn't pay the electric, water bill, and property taxes, what happens?

according to some they dont matter.

[Diopolis]

It'd cause chaos to go whole hog with it, but it's a good idea to just hit a reset button on evictions- no back rent(or cap on back rent), and rent is due from here on out.

And when the landlord doesn't pay the electric, water bill, and property taxes, what happens?

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

[Ethel mermania]

And when the landlord doesn't pay the electric, water bill, and property taxes, what happens?

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

Excuse me while I have a small coronary event.

[San Lumen]

And when the landlord doesn't pay the electric, water bill, and property taxes, what happens?

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

Enjoy paying three hundred dollars for a loaf of bread

[Diopolis]

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

Enjoy paying three hundred dollars for a loaf of bread

There's no avoiding the inflation whether we manage to buck an eviction crisis or not.

[Ethel mermania]

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

Enjoy paying three hundred dollars for a loaf of bread

if my salary is 3.5 million a week, it works out.


MEDIC!!!!

[San Lumen]

Enjoy paying three hundred dollars for a loaf of bread

There's no avoiding the inflation whether we manage to buck an eviction crisis or not.

or we could have thought things through better and not done something so stupid to suspend rent and then be surprised this is occurring

[Diopolis]

There's no avoiding the inflation whether we manage to buck an eviction crisis or not.

or we could have thought things through better and not done something so stupid to suspend rent and then be surprised this is occurring

Well, yes. Water under the bridge would be nice to have back on this side too, wouldn't it?

[Genivaria]

We're due for mega inflation anyways, might as well just forgive property taxes this year, bail out the utility companies(and forgive backpayments) and print money to cover it.

Enjoy paying three hundred dollars for a loaf of bread

We're pretty much already dealing with this considering that our current administration doesn't understand why just printing money for the stimulus checks was stupid.

[San Lumen]

Enjoy paying three hundred dollars for a loaf of bread

We're pretty much already dealing with this considering that our current administration doesn't understand why just printing money for the stimulus checks was stupid.

It seems many of our leaders are and their popularity is dropping

[Saiwania]

Inflation in the US has been historically low for too long anyways. If prices rise by too much, the Federal Reserve can simply raise interest rates to take extra money out of the economy if it is overheated. The current situation is that there arguably isn't enough stimulus. The other problem is that there is too much deficit spending during both boom and bust times when deficit spending is ideally done during a recession but paid for during economic expansions.

[Kowani]

Enjoy paying three hundred dollars for a loaf of bread

We're pretty much already dealing with this considering that our current administration doesn't understand why just printing money for the stimulus checks was stupid.

…You realize that that doesn’t cause inflation, right?
Our debt is denominated in US dollars, we’re not about to become Weimar Germany.

[Borderlands of Rojava]

I love living in a country where we arrest people for not being able to have a house.

Like we don't give them the means to get by and then arrest them for something they can't control which is not having a home.

[San Lumen]

I love living in a country where we arrest people for not being able to have a house.

Like we don't give them the means to get by and then arrest them for something they can't control which is not having a home.

None of this was through through and we are going to end up creating a worse situation than any pandemic ever could

[Borderlands of Rojava]

I love living in a country where we arrest people for not being able to have a house.

Like we don't give them the means to get by and then arrest them for something they can't control which is not having a home.

None of this was through through and we are going to end up creating a worse situation than any pandemic ever could

There's already shitloads of homeless people in my town. When this is all said and done, there's gonna be a skid row style shanytown extending all the way down Hall Road.

[San Lumen]

None of this was through through and we are going to end up creating a worse situation than any pandemic ever could

There's already shitloads of homeless people in my town. When this is all said and done, there's gonna be a skid row style shanytown extending all the way down Hall Road.

New York will be a shell of its former self.