Date: April 9, 2020
To: All Scheer Law Group Clients and Affiliates
From: Spencer Scheer
Subject: Bailouts, Liquidity Crunch, Unemployment and Uncertainty. Something has to Give
An economic crises strapped to the back of a pandemic threatens the structural integrity of the financial system. Take this headline for example.
“Missed Rent Payments Cascade Across the Real Estate Industry.”
The ramifications go all the way up the line (as opposed to traditional financial shocks that go down the line).
The impact of one or two missed rental payments at the residential level, cascades up to landlords, lenders, investment funds and the government.
Perhaps bailouts at unheard of amounts and Fed backstop will “hold the fort” and be the cure. Some are starting to call for a universal “reset”, a moratorium (and maybe short-term forgiveness) on all things debt, to put everyone on an even keel. Sure seems far-fetched, but the legal system and banking system are putting the possibility in place.
SLG is operating fast and furiously to keep track of the Orders, edicts, regulations and trends that are emerging. Policy changes by the day. Those who see the trends and prepare will be survive and thrive. It takes one part dedication, two parts courage and three part prescience’s to know how this will play out. We aim to help you sort this out. In addition, to Client alerts we post ongoing updates on our website at https://www.scheerlawgroup.com, as well as updates on Linked In.
Please call or email if you have questions.