He doesn't understand that "payroll thing"
I mean, that implies working, he doesn't know why anybody would work for a government check
he was being serious but inner-city public schooling doesn't teach you about paying bills, starting businesses, proper grammar, and funding payroll which is why he had to google "PPP" to suddenly be an expert in small business ownership. Tom Nichols wrote a great book about this condition called The Death of Expertise where a bored, uneducated, unsuccessful street-squatter now has search engines to fancy himself an expert about any subject
and what Ali-G didn't understand (shocker) was that both you and Will confirmed my network's belief that it's time to go back to banking with regional banks and credit unions because the nationals don't care about the 2-20 employee companies that make up 98% of all American businesses. My accountant told me PNC, specifically, started with clients doing as close to $5M/yr with 49 employees as possible to push them to the top (so $4.2M and 41 employees got preference over $2.2M and 12 employees no matter who applied first)
not true Will. he explained to all of us deadbeats that you can't call yourself self-made in America unless you're an immigrant....if you were born here then you have no claim that you built anything.
(sad thing is we're even talking about this fn cvnt like he matters)
Doesn’t take a rocket scientist to know you small business owners have been shit out of luck. And then you try to chastise people who get government help. You’re a clown ass hypocrite. Fuck your small business.
Pig? Uneducated? Dawg. You better come correct, red neck. Right now you’re shooting from the hip.
Those are the same search engines that allow you and your dumb klan friends dig for their propaganda memes and right wing extremist articles. Yeah. Better recommend that book to your buddies
Pig? Uneducated? Dawg. You better come correct, red neck. Right now you’re shooting from the hip.
Those are the same search engines that allow you and your dumb klan friends dig for their propaganda memes and right wing extremist articles. Yeah. Better recommend that book to your buddies
Health Insurance and retirement benefits could absorb a bunch. But to use it all he'll need a cash balance or defined benefit plan, they can enable you to pound retirement benefits
FWIW, my best guess us that they're going to expand and / or extend forgiveness and repayment terms
Personally I think they should have given way more than $1,200 to everyone and less to this program. Although I get every person doesnt need the $1,200 check and there are a signifcant amount of people that their income has not changed at all. Why should someone that is retired be getting money.
This program definitely has flaws and is not going to the small business that was most in need. I dont recall what Cheddar does....I do recall a post saying he got some contract or something that was great for his business. So just for the sake of argument lets say his business is doing fine. That $60,000 is basically a gift from the government and was not needed to keep his business alive....which was not the intent of the program.
There are other business owners that were forced to close for 30, 60, 90 days. Still had rent to pay and other bills. That is the business that the program was meant to help.
I had one business owner who is up and running with no change in his revenues tell me he wished their was a pandemic every year because he was getting close to $300,000 and it was like a bonus.
This program definitely has flaws and is not going to the small business that was most in need. I dont recall what Cheddar does....I do recall a post saying he got some contract or something that was great for his business. So just for the sake of argument lets say his business is doing fine. That $60,000 is basically a gift from the government and was not needed to keep his business alive....which was not the intent of the program.
There are other business owners that were forced to close for 30, 60, 90 days. Still had rent to pay and other bills. That is the business that the program was meant to help.
I had one business owner who is up and running with no change in his revenues tell me he wished their was a pandemic every year because he was getting close to $300,000 and it was like a bonus.
That's harsh. Hopefully their landlords will work with them and defer their rent. I know the fed has given banks guidance in allowing them to defer p&i for 90 days with the potential for another 90 days if things don't open up. Adding the payments to the end of the balloon or maturity. Capitalizing interest isn't optimal but you do what you have to do to survive. The banks are encouraging their borrowers to pass the deferrals on to their tenants.
Bank's had to classify loans in 2008-12 if they deferred and capitalized loans. They called them TDR's (Trouble Debt Restructure) and examiners came down hard on banks that did not identify their problem assets.
Difference between 2020 and 2008 is that examiners are encouraging banks to restructure debt. I think they will find that the end result won't be perfect but a lot better than 10+ years ago
If there was an easy way for the underlying mortgage holder to tell some commercial property owner we are going to defer payments for some period...lets say 6 months and you dont have to make payments. We will just tack the interest on the end of the loan. All they really have to pay in taxes and insurance.
If they then told the small business owner you dont have to pay rent for 6 months. There would have been less impact on the economy and there would not have been the need to do some of these small business loans.
Same in the residential market.
I work with a significant number of commercial real estate investors. It will be interesting to hear what happens in May. The numbers from the streets were 80% of the office tennants paid rent on April 1. Only 30% of the retail tenants paid. What are they going to do boot them out? Not like someone is waiting for that space. If you were a business like a barber shop.....the best thing for you to do is say I am not paying until I can open and start getting revenue. If they want to kick you out. Probably be the best thing that happened to you. Move across the street and you will probably get better rent terms.
If they then told the small business owner you dont have to pay rent for 6 months. There would have been less impact on the economy and there would not have been the need to do some of these small business loans.
Same in the residential market.
I work with a significant number of commercial real estate investors. It will be interesting to hear what happens in May. The numbers from the streets were 80% of the office tennants paid rent on April 1. Only 30% of the retail tenants paid. What are they going to do boot them out? Not like someone is waiting for that space. If you were a business like a barber shop.....the best thing for you to do is say I am not paying until I can open and start getting revenue. If they want to kick you out. Probably be the best thing that happened to you. Move across the street and you will probably get better rent terms.
I deal with a lot of banks. They all are saying similar things. I think the math is the 25% is theoretically used for rent and utilities. That part is the loan that could not be forgiven.
All that being said its speculation. Nobody knows....hell they changed the rules and process just hours before the PPP went into effect
Bad press and no tenants to replace the evicted. Not a good place to be in if you are a landlord
What's going to be more interesting is what happens to businesses that apply for loans next year? No way they underwrite based on 2020 financials. It's all about cash flow and debt service coverage and many businesses are going to have a really bad year.
Many think that it will be a quick turn around but it may take longer than most realize.
I agree the turnaround is going to be tough. Even before anything happened....retail commercial real estate was not a place I would want to be plus I think it got significantly worse. Retail is getting tougher every day. Apartment buildings seem to be going up left and right. People still need a place to stay. They are going to have issues too.
The commercial REITS have been hit pretty good, Not everyone is the same. I heard Chamath saying they were looking at the portfolios of all the REITS and looking for the ones that had clients like Walmart and other solid companies renting large properties and not going anywhere, This seems like a very logical approach to me. Pick up a solid asset that was beaten down by the company they kept.
