One of the problems our American economy we will face soon is the effects of the rise in unemployment on working people.
With very high unemployment will come misery and death due to banks' probable unwillingness to adjust their loans and their reliance on traditional foreclosure, eviction and other unspeakable behaviors.
Unemployed people lose incomes and have trouble paying their bills. Some will become homeless because they can't pay rent or loan payments.
Now is the time for a national Rent and Loan Holiday
Don't pay your rent or loan, even if still employed. Live secure because you did nothing wrong and Americans help each other. All Americans should take a holiday from rent and/or mortgage payments for twelve months. And, evictions, repossession and other legal steps should be prohibited for the same period.
Housing costs are a big share of most family expenses. After losing a job and with no other income many will choose between food and shelter. Many will choose to become homeless rather than starve.
Spending can increase when housing is secure for a year.
Imposing misery is not the American way. Americans don't abandon unfortunate people, instead we come together to help all of us survive.
If the economy recovers at the end of the year banks can add the missed payments onto the end of the loan.
Renters should have the same rights, no rent for a year. If the landlord has a mortgage he won't be harmed since the loan will be on holiday.
At the end of the year, borrowers receive an option to renegotiate or sell their property. Homeowners whose houses have declined in market value can start with a new loan at the lowered market value. Their original down payment applies to the new loan and the new loan will be for the new value.
Banks will lose some income but their principal remains since they retain a lien against the property. When prices decline they will retain their relative purchasing power with no real loss.