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0 pointsdragonwriter6y ago0 comments

> The bailout of the banks has started with 0% rates and massive QE, which at the end of the day while I think necessary to prevent a credit crisis

Well, no, if you bailed out businesses and consumers directly, there also wouldn't be a credit crisis.

Structurally, though, that's fiscal stimulus, which isn't the Feds job, and good luck getting much of that through Congress, and by that I mostly mean the Senate Republican Caucus.

> We should consider more radical measures like temporary rent/mortgage freezes.

While not that particular measure, a number of states and localities have adopted or are considering eviction and/or foreclosure bans, which leaves mortgage/rent technically due but limits nonpayment consequences.

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6 comments · 2 top-level

smt886y ago· 4 in thread

HN's culture against partisan political statements looks particularly like sticking one's head in the sand these days.

Coronavirus is not a political thing, but our (partisan) elected leaders had an enormous amount of power over how prepared we were, and their agendas shape the on-going response. It's impossible to talk accurately about the problem or solution without mentioning parties and politicians by name.

tathougies6y ago

This is crazy. There is nothing any party could do to have prevented the virus from reaching the United States, aside from a complete shutdown of the borders, including for American citizens. It is too transmissible, too undetectable, etc, to prevent it. Containment is the only feasible option, and America is actually ahead of the curve. Unlike Italy and France and Europe, American states are shutting down before hospitals have yet to be overrun.

adamsea6y ago

There is so much the US could have done if it had exercised an international leadership role earlier in the crisis.

And the current administration messed up big time by not manufacturing sufficient coronavirus tests and instituting some sort of testing regime.

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woofie116y ago

Of course we could have contained it. See Taiwan for a golden example. About one case per day since this started.

China, Japan, and South Korea or other examples.

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smt886y ago

You're attacking an argument I didn't make.

I did not say anyone could prevent the infection from reaching the US. The damage can vary wildly once it's here. Containment is not a binary outcome.

Among the tools govt has: funding science, appointing competent officials at CDC and State Dept, travel bans, quarantines, financial relief, effective messaging, targeted testing, subsidizing tests and treatment, restrictions on gatherings, anti-smoking campaigns, regulations to reduce air pollution, not telling people that it's an exaggeration or a hoax, inviting the other party to discuss a compromise on life-saving measures, acting on the CDC's recommendations, sending govt workers home, enforcing anti-gouging laws... it's a long list.

As has been discussed here and elsewhere, many of Trump's behaviors and much of the Republican agenda has pulled us in the opposite direction of where we needed to be to deal with this. In the CDC, many people are "acting" roles because Trump refuses to fill vacancies. The same is true of the State Dept.

djannzjkzxn6y ago

The gap between the rates on the 30 year treasury and the 30 year mortgage increased from ~1.5% to over 3% and getting worse, before QE4 was announced (and this was already pricing in some fed action). This indicates that investors stopped buying mortgage-backed securities which would have eventually resulted in home buying activity stopping and a housing market crash. I don’t think any bailout for restaurants and bars or mortgage/rent holiday would have helped with this. I’m not saying such stimulus isn’t necessary, but it doesn’t replace fed policy.

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6 comments · 2 top-level

smt886y ago· 4 in thread

HN's culture against partisan political statements looks particularly like sticking one's head in the sand these days.

tathougies6y ago

adamsea6y ago

There is so much the US could have done if it had exercised an international leadership role earlier in the crisis.

And the current administration messed up big time by not manufacturing sufficient coronavirus tests and instituting some sort of testing regime.

1 more reply

woofie116y ago

Of course we could have contained it. See Taiwan for a golden example. About one case per day since this started.

China, Japan, and South Korea or other examples.

1 more reply

smt886y ago

You're attacking an argument I didn't make.

I did not say anyone could prevent the infection from reaching the US. The damage can vary wildly once it's here. Containment is not a binary outcome.

djannzjkzxn6y ago

j / k navigate · click thread line to collapse