With nearly 33 million Americans receiving some sort of unemployment assistance as of last week, there is now a serious concern pertaining to the amount of people facing evictions over the coming months. During the pandemic response, federal and state authorities have issued various moratoriums with respect to renters and home-owners with mortgages. These temporary stays are coming to an end over the next month. If Congress and/or state legislatures do not act, some 20 to 28 million Americans may face eviction over the coming months. For comparison, during the GFC, which at the center was a real estate collapse, some 10 million Americans over the course of a few years were evicted. So even if half of this new estimate should come true, then we’ll match the GFC or worse. And even if “something” is done by government authorities – how much will it cost and will it simply just delay the inevitable?
Many landlords are a part of the “middle-class,” and use real estate as a means to generate extra income and cash flow. Many of these landlords are not outright owners of their properties and as such, also have mortgages and other loans to pay. Well, if their tenants are not paying, then how can the landlord afford to pay their mortgage(s) among other maintenance costs? This is a vicious cycle, because even if there are additional moratoriums, then how will the banks be paid? And as such, would banks then not move to increase their lending standards? Yes, they’re already doing so. This would then mean, if someone wanted a loan, there are going to be higher thresholds that need to be met in order to receive the loan(s), thus translating into a smaller group of people and corporations that will receive the loans. And all of this is on top of trillions of dollars being printed out of thin air. This is a tale of two cities where the largest corporations are being bailed out and even having the corporate debt purchased by the Federal Reserve and on the other side of the city – 33 million Americans unemployed (even more), food bank lines like the Great Depression, and millions about to be evicted. We told you we’re in a banana republic and it’s just getting started. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Depression #Recession #BananaRepublic #EndTheFed #Debt #Gold #Silver #Liberty