> We would need to make certain judgment debts senior to mortgage debt to give landlords or lenders skin in the game to ensure they are not profiting from illicit activities
I have very mixed feelings about this. While I love the "skin in the game" as a concept (ask me sometime about my ideas for this regarding Senators and Representatives!) as a one-time small business owner and current very-small-scale landlord I have a fair amount of dislike at the idea of every property owner having to become an effective private investigator too.
That's an amazingly simple idea. It would work. I used to have to get bonds working for the Feds and certain large publicly owned utilities. They are easy to get and relatively inexpensive - IF you have a reputation for performance. Forty years ago, my first bonds had an SBA guarantee - which kept the bond rates low for new risky entrants - but cost the government nothing as long as there was no default.
These bonds are like buying insurance and they are underwritten to control risk. If you are a shady operator - don't plan on getting a bond. If you are wealthy, bond yourself. Competitive advantage, you don't have to give the money to the government to hold, you have to secure your promise to pay. The investment is still yours to manage.
If there is no money - there is no tort pursued in the courts. Bonds solve the problem. It's a brilliant idea.
> We would need to make certain judgment debts senior to mortgage debt to give landlords or lenders skin in the game to ensure they are not profiting from illicit activities
I have very mixed feelings about this. While I love the "skin in the game" as a concept (ask me sometime about my ideas for this regarding Senators and Representatives!) as a one-time small business owner and current very-small-scale landlord I have a fair amount of dislike at the idea of every property owner having to become an effective private investigator too.
That's an amazingly simple idea. It would work. I used to have to get bonds working for the Feds and certain large publicly owned utilities. They are easy to get and relatively inexpensive - IF you have a reputation for performance. Forty years ago, my first bonds had an SBA guarantee - which kept the bond rates low for new risky entrants - but cost the government nothing as long as there was no default.
These bonds are like buying insurance and they are underwritten to control risk. If you are a shady operator - don't plan on getting a bond. If you are wealthy, bond yourself. Competitive advantage, you don't have to give the money to the government to hold, you have to secure your promise to pay. The investment is still yours to manage.
If there is no money - there is no tort pursued in the courts. Bonds solve the problem. It's a brilliant idea.
Thanks! I'm glad you liked it.
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