Interesting. Rent default domino effect.
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Replying to
This is the sort of thing that a sensible government should have predicted in week 1 of COVID and created measures to prevent. Put the economy into suspended animation : all debts, taxes, indefinitely frozen. Government pays the minimal actual needed to keep each actor afloat.
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Replying to
I don't think it's a prediction problem. Anyone can see this failure cascade a mile off. It's a trust and incentives problem: who has an incentive to try to solve the problem, and are they trusted enough by others. I personally don't trust government backstopping here.
Replying to
Well clearly the government isn't doing it, so can't be trusted to do it.
If they DID do it, then I'm not sure what trust most peopl would need. You'd just not pay your bills, and no-one would come after you. Landlords wouldn't have to pay their bills either. Etc.

