Okay, so we've missed out on a lot of sports, but the ECONOMY has not been destroyed.
You guys are funnier than the "everybody's gonna die" crowd. Way funnier actually. The "everybody's gonna die" crowd's kinda morbid. More of that dark humor, I reckon.
We've smashed previous unemployment claim records. We aren't seeing it the extent of the damage yet b/c it will take a little while to show. If we get back to business in the next couple of weeks (which I don't think people are expecting to happen), I think it will be a significant dip but something that we can sort of take in stride. There will be knock on effects as people tighten their belts to recover, but we won't have a financial crisis to go along with the economic crisis. But beyond that, I'm not sure.
We can't evict people right now, so of course we're not getting paid rent by a significant number of tenants. Some of those b/c they aren't getting paid, and we will probably get a significant portion of that rent eventually because the tenants want to pay. Some of those because we have properties with the type of tenants that are always being chased by creditors, so getting a few months free rent and then moving when evictions are allowed is a no brainer decision for them. We won't get any of that rent back.
Right now, the bank is just letting us add our payments, with interest, to the end of our loans. There is a limit to how long they will do that and a limit to how long we are going to be willing to do it. That is a simple case. that is happening in the commercial lending market also, for both property and equipment (on top of having a oil war that would devestate the domestic fracking market regardless of the pandemic). The only reason it's not happening in the bond markets is that there is no central lender to grant forbearance, and not making payments would cause all sorts of pain, but you will see bond defaults if it keeps going.