Arpit Gupta, City Journal
Most Americans are homeowners, and mortgage payments generally represent their biggest financial burden. Mortgage forbearance—when a mortgage provider agrees to let the homeowner pause or reduce his payments for a certain period—thus has a direct beneficial impact on struggling household finances. Forgiving mortgage debt, however, imposes a significant financial burden, which must be borne by lenders or taxpayers. The federal CARES Act tries to strike a balance between the benefits of household mortgage relief and its costs by imposing a temporary moratorium on foreclosures and allowing forbearance on government-backed mortgages (primarily those by Fannie Mae, Freddie Mac, and the Federal Housing Administration).
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featuring John H. Cochrane via Seeking Alpha
Will the recovery be V shaped, quickly roaring back to the previous level? It does that every January 2 after the long Halloween-Thanksgiving-Christmas-New Year's slowdown, and it did in 1984. Or will it be an agonizingly slow U or L shape, as the recovery from 2008 turned out to be?
Mickey D. Levy & Robert S. Kaplan, Manhattan Institute
Last week’s unprecedented surge of 3.3 million initial unemployment claims quantifies some of the cost of the shutdowns to contain the Covid-19 pandemic. The Federal Reserve is appropriately focused on keeping the financial system operating and preventing a financial crisis, and the $2 trillion stimulus will provide income support to sidelined workers and financial help for businesses that face interruptions in demand and cash flow. But monetary and fiscal stimulus aren’t substitutes for the most important task: getting the unemployed back to work while protecting their health and safety. Read more here....
This is not a standard recession—the sky isn't falling—this is not the result of deep structural problems; rather, it's a government-induced recession to [avoid something worse].
Daniel DiSalvo | National Affairs
The past decade has been a critical juncture for public-sector unions, one that will likely have lasting political and economic effects. Liberals argue that public unions' membership will fall and their political power will decline, which will harm the Democratic Party. But there are compelling reasons to be skeptical about these claims.
Mason M. Bishop | AEIdeas