Great Depression 2 continued

Residential debt is non-recourse. The lender can get collateral, but can’t seek out on any further compensation even if the collateral doesn’t match the defaulted amount in full. Commercial debt is recourse so the lender can seize other assets from the debtor. Now after countless small and midrange commercial enterprises have tumbled into financial ruin, with bankruptcy filings in the thousands. This pillar of capitalism may fall changing how loan defaults are handled. This results in senate bill 939. This would allow small businesses change lease deals if they been affected by the lockdowns and economic tultant from the global health crisis. Landlords couldn’t do rent increases. It would allow businesses to put more money toward employees rather then rent. The widespred shuttering of small businesses and nonprofit would be a loss of goods and services that they provide. One these businesses close, they would be unable to get on their feet. If small businesses have lost 40% of their revenue or if social distancing affected it , then small businesses can renegotiate their least agreements. If two parties can’t negotiate after 30 days, the tenets can back out of the lease. That means no liability for future rent, fees or other costs would be mandatory under the lease. That would shift commercial loans into non-recourse debt. People argue that commercial non-recourse debt is not constitutional. They argue that landlords would be completely vulnerable when the tenants can abandon their leases under less dire circumstances. 80% of California apartment owners are independent. Landlords cover upkeep, mortgage payments, and other projects. After travel came to a halt, bill 939 has been targeting the hospitality sector or hotels. Bill 939 will expire at the end of 2021. The California business properties association said Bill 939 could cause a financial collapse. When land lords become unstable, lenders can put out cash calls. Because real estate runs on carefully networked relationships, a clear advantage to one side a deep distrust and sense of injustice. Renters need a full decade to make good on their rent payments without added interest while landlords receive tax credits with the value of unpaid rent. They said receiving rent payments as usual is not possible in 2020. The grocery store has increased the most in 50 years. 5 trillion has been spent by the Federal Reserve this year and by the end of the year 10 trillion will be spent. One indicator of a great depression 2 is drop in consumer spending. Second is a economic plunge caused by a pandemic that is causing a financial crisis, Third is shuttered businesses and corporate greed like buybacks of corporate stock, investor overconfidence. No growth in the GDP, in a couple of years, a spike in unemployment rate. The great depression of 1930s caused 27.8% plunge in GDP. The 2020 depression may cause 50% plunge in GDP. Many households refusing to spend on anything other then groceries and healthcare. The economy should open sooner so its not crippled by the healthcare crisis, Only 7% of American would like to go to a movie theater. 4% would like to go to Concerts, amusement parks or theater performance. The third indicator is social inequality for keeping businesses running and employees employed.