Steve R.
Retired
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- Joined
- Jul 5, 2006
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Unfortunately, good intentions also seem to have negative unintended consequences. The financial incentives to keep businesses and people financially "liquid" (able to pay their bills) may only partially achieve the desired effect. For example, the financial aid package (besides giving people money) has provisions that if people do not pay their rent; they cannot be evicted. Seems reasonable, but it also assumes that people and businesses when they receive the financial aid would actually pay the rent with it. So how many people, when they receive the money, will actually pay their rent?
On the news this morning several companies, such as WeWork and Staples were identified as withholding rent obligations. These are very weak companies. Even before the Covid-19 Pandemic, these companies were in decline. The financial being provided may never save these companies, only prolong the agony of their decline. The leaseholders in the end, may never get paid the deferred rents.
Of course, at this time, it is to soon to know how if people and businesses will use the financial aid as intended.
On the news this morning several companies, such as WeWork and Staples were identified as withholding rent obligations. These are very weak companies. Even before the Covid-19 Pandemic, these companies were in decline. The financial being provided may never save these companies, only prolong the agony of their decline. The leaseholders in the end, may never get paid the deferred rents.
Of course, at this time, it is to soon to know how if people and businesses will use the financial aid as intended.