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Tuesday, April 21, 2020

Demand is Up. Banks V. Trump.

It's only been 3 weeks since the pause began, but what a 3 weeks it has been.  What is true one week is outdated the next, what is true one day is not the next what is true one hour is challenged the next.

That being said, our evaluation of what this means to the Catskills upstate real estate market remains fluid.  We are fielding a lot of calls looking for homes.  With motivated buyers.

I've been saying since the PPP program came out, putting the onus on banks large and small to lend lend lend with little if no regular due diligence on the loans - I've been saying from day one how would/could any bank trust the word of a President who has spent his life screwing banks.

And then, there you have, a statement he makes in the middle of his daily rantings, where he says 'banks should be lending... according to what we think it right."   What?!  What kind of guidance is that?  it's his opening gambit to blame the banks for a poorly structured loan program.

I'm a small town bank aficionado.  I love small banks, and recognize their value, and the skills and community-knowledge that enables these banks to survive and prosper, for generations, for centuries +.  They occupy a very important place in our society.

And now you have a country asking every bank to step up and serve their community, as quick as possible, with fuzzy rules, to do away with all the due diligence and caution and precision that have kept them in business - and within 3 weeks we start getting comments where the president starts throwing shade on the only thing these banks had to go on - faith that the American Government will make them whole.

If the Feds would screw these small banks in some way, even with unclarity or fear, the damage that would do is incalculable.

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