👉 TSUNAMI OF DEFAULTS, EVICTIONS LOOMS ON HORIZON
Channel: The Nomad Economist
Date: 08/06/2020

TSUNAMI OF DEFAULTS, EVICTIONS LOOMS ON HORIZON
Even as US stock markets rally and people anticipate a quick recovery as economies open up, a tsunami of defaults and evictions looms on the horizon.

The mainstream narrative has been that although the coronavirus shutdowns have rocked the economy, it’s not a financial crisis like we saw in 2008. Back in April, Peter Schiff said that we were absolutely heading toward a financial crisis and it will be worse than 2008.

“Obviously, if people aren’t earning as much money as they were when they were working, especially small businesses, they’re not paying their loans. So, the banks are not getting interest payments. They’re getting defaults. … When you have a credit bubble, when the economy is built on a foundation of debt, and then something happens to shake that foundation, you have a big problem.”

Up until this point, government intervention and leniency from lenders have put off the inevitable. But struggling debtors can’t kick the can down the road forever.


According to the latest available numbers from TransUnion, about 3 million auto loans and 15 million credit card accounts are in some kind of program to let people skip or make partial payments, and NPR contends this number is probably understated. Meanwhile, homeowners are struggling to make mortgage payments. According to the analytics company Black Knight, 4.75 million homeowners have entered into forbearance plans. That represents about 9% of all mortgages.

Banks and credit card companies can’t let people off the hook on payments forever. Some smaller lenders are already hurting. American Financial Services Association President Bill Himpler told NPR that finance companies need a “government conduit” so they can borrow money themselves.

👉 For the full transcript go to https://financearmageddon.blogspot.com
👉 Donate to help The Channel:  https://tinyurl.com/vqbgwld
👉 Amazon Affiliate Links : https://tinyurl.com/sqwekhd
 Support the channel by clicking here before you start shopping on Amazon: https://tinyurl.com/sqwekhd (heck, even bookmark it for future use if you're feeling extra generous). 
Thank you to all my loyal fans i love each and everyone one of you Please **like and subscribe**  
👉 Follow us on Facebook : https://www.facebook.com/theatlantisr...

and on twitter : https://twitter.com/atlantis_report