Investors brace for consumer debt defaults if US relief stalls | Financial Times
Several issues to consider – 1) how much have loan modifications and forbearance artificially suppressed defaults and delinquencies, 2) how many jobs have been permanently lost due to downsizing and company BK, 3) how many jobs are vulnerable to the ebb and flow of reopening economy.
The reopening economy jobs should be targeted by directly replacing lost income due to social distancing rules. The earlier rounds of funds were poorly targeted. Businesses laid off employees yet still received PPP funds, millionaires and dead people received the $1200 tax credit, etc.
Targeting the reopening economy through tax credits due to low occupancy and direct funding of protective measures makes a lot more sense than scattering billions to consumers and companies who didn’t need it. And it focuses on optimising the health and economic risks.