thehousingbubble@gmail.com
Blog

For Some, The Alternative Is Defaulting On Their Mortgage, Walking Away With No Money And A Bad Credit Rating

A report from Now Toronto in Canada. “Toronto’s priciest real estate had the steepest declines. The Rosedale and Moore Park area plunged 15.2 per cent from $3,687,292 to $3,127,643. The Bridle Path and Windfields area were not far behind. The average home price dropped 9.5 per cent from $3,697,343 to $3,346,422.”

From Glasgow Now in the UK. “Building student accommodation in certain parts of the city could soon be stopped under new planning guidance. More than 11,000 students beds are currently on offer in the city, with over half in the City, Yorkhill and Anderson ward. In the last two years, more than 5,000 student beds have been added. Nearly half that figure is also currently in the pipeline. Cllr Angus Millar, SNP councillor for Anderston,City and Yorkhill, said: ‘At a time when we are actively trying to increase the residential population of the city centre, it is vital we support the growth of mixed, balanced communities, rather than adding yet more monolithic student blocks to areas already saturated with them.'”

From Mingtiandi on Hong Kong. “Hong Kong’s retail property market is bracing for turbulent times as a street front shop in the world’s most expensive shopping district was sold at a 73 percent loss. According to Land Registry records cited by the Hong Kong Economic Times, the 244 square foot (23 square meter) shop in Causeway Bay was sold for HK$5 million ($650,000) earlier this month, or around HK$20,500 per square foot. That price was just over a quarter of the HK$18.74 million which the seller had paid to purchase the bedroom-sized property seven years ago.”

From Nine News on Australia. “Australia’s property market could be left with a glut of stock as mortgage repayment holidays run out and government economic lifelines run dry.’The reality is that despite government assistance, some people may not see secure employment or their business recovering in the near future, and the recommencement of mortgage payments will be a burden they cannot bear,’ said Finance Brokers Association of Australia managing director Peter White.”

“He warned many lenders won’t consider refinancing a borrower under a bank stimulus program. ‘For some, the alternative is defaulting on their mortgage, the bank taking possession and walking away with no money and a bad credit rating,’ he said. ‘You are far better off to be in control of your destiny than allowing the bank to take control as they will act in their own interest and that of their shareholders.'”

“For some, that may involve pre-empting a default on their mortgage before they are forced to. ‘There is no advantage in holding off and hoping, when we don’t know what the market will likely be after the stimulus payments stop,’ he said. ‘There may be a glut of property suddenly on the market.'”

From Smart Property Investment on Australia. “Figures released by CoreLogic have shown that Sydney has fallen by 0.8 per cent, while nationally capitals have fallen by just 0.7 per cent throughout the COVID-19 crisis. According to Macquarie University’s professor of business analytics Stefan Trueck property prices in May 2020 sold on average 8 per cent below their valuation. This means that in May, houses were being offered at a significant discount to those pre the COVID-19 crisis.”

“‘It is likely that Sydney house prices have already dropped more substantially than the public has been led to believe,’ says Professor Trueck. ‘Vendors and real estate agents have significantly reduced the reporting of sales results for houses and apartments in many suburbs.'”

“Figures sourced from realestate.com.au show that the average number of reported auction results was 76 per cent in the October to November 2019 period. But since April 2020, only 50 per cent of sales data is being made public. The figures show that in comparison to the second half of 2019, auction results or sales are now far less likely to be revealed.”

“‘For example, in the northern Sydney suburb of Lane Cove, about 60 properties have been sold since the beginning of May 2020, according to realestate.com.au. However, prices for less than 10 of those sales have been made public. This scenario plays out across many other suburbs in Sydney,’ the professor highlighted.”

“The withholding of auction results often occurs when vendors or real estate agents are not pleased with the result and the sale price falls below expectations. Although these transaction prices can be withheld initially, in subsequent weeks the auction prices are eventually made public when they are reported to the NSW Land Registry Services. ‘This suggests that typically unfavourable price outcomes are more likely to not be reported by vendors or real estate agents,’ Professor Trueck noted.”

From TV New Zealand. “An over-supply in Queenstown has forced landlords to significantly drop their prices as people leave the country or become stuck here. Excluding Canterbury, the average rent price in the South Island has dropped nearly 10 per cent compared to June last year. Queenstown is feeling the brunt of it with Harcourts saying rent values there have gone down as much as 40 per cent in some cases.”

“While it’s good news for tenants, it’s added pressure for landlords. ‘They’re at a level where they’re only just breaking even,’ says Paul Hibbett from Harcourts Property Management.”

From Stuff New Zealand. “It’s great news for tenants and bad news for landlords as rents continue to come under pressure in Queenstown and other tourist towns. Property manager Beth Chisholm of Ray White Queenstown said at this time last year she had no vacancies at all but this year was completely different and many people had had to leave town. Generally, she said rents were down 20 to 30 per cent ‘but I’ve had one at 75 per cent because they just wanted to keep the tenant. I’ve been stressing to owners that it’s important to keep someone living in there, especially over winter, because there’s an awful lot of vacant properties at the moment.'”

“Infometrics economist Brad Olsen says similar situations were developing in other tourist towns such as Rotorua. Rental prices were being driven down by a combination of job losses and a high concentration of AirBnBs or short-stay accommodation which had shifted onto the long-term market. ‘It is very much that supply, and you’ve seen that coming through from some people in the South Island that there is more stock around and therefore there is more choice,’ he said.”

“The Property Investors Federation’s executive director, Sharon Cullwick, said she had heard from some landlords with rentals in Queenstown who were doing it hard. One landlord who owned three properties there had been swamped by competition from AirBnBs. ‘They had better views than his, were better positioned to town, and he said he would have to drop the rents, which meant he couldn’t afford to keep them.'”

“Also hard hit had been ‘quite a few people’ who had mixed residential-commercial properties whose business tenants had refused to pay rent. This had been particularly hard on older landlords with fixed incomes and a mortgage on their rental.”

Related Posts

We’re Seeing Almost 20% Off

https://www.youtube.com/watch?v=Y5nmVGkr7Dg https://www.youtube.com/watch?v=0NlR_AtBAtw https://www.youtube.com/watch?v=l7IOB5YozIo https://www.youtube.com/watch?v=PvN4ttyLc-E

This Post Has 90 Comments

  1. ‘‘It is likely that Sydney house prices have already dropped more substantially than the public has been led to believe,’ says Professor Trueck. ‘Vendors and real estate agents have significantly reduced the reporting of sales results for houses and apartments in many suburbs.’

    3. ‘‘It is likely that Sydney house prices have already dropped more substantially than the public has been led to believe,’ says Professor Trueck.

      B…b…but this implies widespread collusion between the REIC and globalist media outlets – is there any other kind? – who only seek to enlighten their subscribers. I find this to be utterly inconceivable!

    1. I’m surprised they haven’t been liquidated already. The car rental biz isn’t coming back anytime soon.

  3. Business
    The millions ‘hanging by a thread’ as coronavirus aid expires
    By Natalie Sherman & Zoe Thomas Business reporters, New York
    27 July 2020
    Related Topics
    Coronavirus pandemic
    As the US economy reopens, some lawmakers say it’s time to cut back the pandemic relief

    When Brandon Humberston’s weekly unemployment benefits finally kicked in after months of waiting, the $750 (£586) cheque was a “godsend”.

    Suddenly the 19-year-old, who worked as a cook at Mexican restaurant chain Chipotle until the pandemic cost him his job, could pay rent and buy groceries – even save a little.

    Now much of that income is set to disappear.

    The $600 a week additional payment that the US approved to top up unemployment benefits during the pandemic will expire on 31 July. In many states, recipients have already received their last cheque.

    “It’s pretty dire,” says Mr Humberston, whose benefits will be cut to $150. “My generation is hanging on by a thread”.
    …

    1. One of my unemployed kids just updated his resume and applied for a job. I’ll have to ask him if it had to do with shrinking benefits.

      1. With your kids and their boyfriends enjoying the largesse, I’m sure you were a fan of it too, no?

        1. I’m somewhat indifferent regarding my personal situation. My kids are going to be alright regardless.

          However, given how the under-40 generation has been routinely hosed by bailout policy measures dating back to fall 2008, it seems righteous for them to get a piece of the bailout pie this time around, no?

      2. One of my unemployed kids just updated his resume and applied for a job. I’ll have to ask him if it had to do with shrinking benefits.

        Of course it did. Let me guess – he was just kicking back and enjoying that free lunch, right? Because how in the world would he not have already updated his resume 4 months into an unemployment stint? This extra $600 was a revolting idea which turned the unemployed into a bunch of lazy freeloaders.

        1. I have a niece who lives at home with her parents (who don’t charge her rent) and she has saved $10K of the free money. Even though she just graduated with a STEM degree in micro-biology she has made no effort to find a job (she was laid off from a menial job she had while still in school), and why would she? She’s being paid $50K to do nothing.

          Another relative bought a nice used car with her free money.

        2. No.

          Actually he and his fiancee are building a house, with the help and oversight of his prospective FIL.

    2. CNBC reports the McConnell bill will gibs $200 of federal gravy for August and September before adjusting to 70% of previous wages in October. Obviously, this is not enough for the FSA, ensuing arguments in Congress will delay the gibbing of any gibs.

      I’ll be getting another $1,200 check, not that I need it.

      1. I’ll be getting another $1,200 check, not that I need it.

        If you don’t want it, I’ll happily provide a forwarding or paypal address. 🙂

      2. This is why I can’t stand the Repukelicans anymore. There should be ZERO gravy, yet they’re doling it out, too.

    3. “It’s pretty dire,” says Mr Humberston, whose benefits will be cut to $150. “My generation is hanging on by a thread”.

      Maybe your generation should stop voting for the Oligopoly status quo.

    4. “the $750 (£586) cheque was a “godsend.” Suddenly the 19-year-old … could pay rent and buy groceries – even save a little.”

      So if I understand this text correctly, this young man’s actual job was not enough to pay the bills, but the $750 was. So how was this young man surviving before the pandemic? Credit cards? If I were Trump, I’d make a deal with the Dems: raise the minimum wage to $14 in exchange for cracking down on immigration. We need both.

    1. I don’t know what comes next, but suddenly it seems like the asset markets are rapidly approaching an unintended threshold effect.

      The Financial Times
      Coronavirus business update 30 days complimentary
      Markets Briefing Gold
      Gold climbs to near $2,000 ahead of Fed meeting
      Precious metal hits new record high as investors fret over health of US economy
      Gold’s recent gains have come at the expense of the dollar
      © Reuters
      Hudson Lockett in Hong Kong an hour ago

      Gold rose to within striking distance of $2,000 for the first time as demand surged ahead of an interest rate decision by the US central bank.

      The price of the precious metal for immediate delivery hit a new all-time high of $1,980.57 per troy ounce on Tuesday morning in Asia. Gold has risen by more than 30 per cent year to date, making it one of the best-performing mainstream assets in 2020.

      Viewed by investors as a haven during times of uncertainty, gold has jumped by about 9 per cent in the past six trading sessions as concerns have grown over the economic impact of US coronavirus outbreaks.

      The recent gains have come at the expense of the dollar as investors have bet that the worsening Covid-19 situation in the US will prompt more economic stimulus measures. A weaker dollar is typically viewed as bullish for gold partly because it makes the metal cheaper for international buyers.

      The dollar index, which tracks the US currency against a basket of peers, is trading near its lowest levels since mid-2018.

      Investors said gold’s upward momentum reflected growing expectations that the Federal Reserve could signal new policy measures when its rate-setting committee meets on Wednesday.

      While traders doubt the Fed will turn to negative interest rates, some believe it could adopt more unconventional measures such as yield curve control or setting upper limits on Treasury yields.

      “The Fed is likely to signal it continues to have its finger on the trigger — that it stands ready to ease policy more if necessary,” said Thomas Costerg, senior US economist at Pictet Wealth Management.
      …

      1. “…some believe it could adopt more unconventional measures such as yield curve control or setting upper limits on Treasury yields.”

        Would these need to be announced, or might they already be in play, unannounced?

        1. Ever since October, the Fed has been manipulating both ends of the yield curve in a bid to distort all mechanisms of true price discovery.

      1. Sold NEM and HL yesterday. Am expecting the Fed and its bullion bank accomplices to do yet another orchestrated smash-down of PMs. If their usual manipulation tricks fail, it means Game Over for their market-rigging and artificial suppression of precious metals. In other words, that would mean the wheels are about to come off the bus.

  5. The virus is hard to eradicate in a population of over one billion with no cure in hand.

    The Financial Times
    Coronavirus business update 30 days complimentary
    Coronavirus pandemic
    China records biggest one-day rise in coronavirus cases since March
    Xinjiang infections spark fears country faces fresh wave of Covid-19 pandemic
    Multiple small clusters of cases have continued to appear in China
    © AP
    Christian Shepherd in Beijing 2 hours ago

    A record number of coronavirus infections in Xinjiang, the Chinese region where authorities have been accused of widespread human rights abuses, has prompted concerns the country faces another wave of the pandemic.

    China’s National Health Commission on Tuesday announced 64 locally transmitted Covid-19 cases, marking the country’s biggest one-day rise since March. Of those, 57 were found in Urumqi, Xinjiang’s capital.

    In the past two weeks, 280 cases have been confirmed nationwide. The latest outbreak in China — where Covid-19 was first reported earlier this year — comes as countries across the region suffer resurgences in infections.
    …

    1. Citizen! The appropriate reaction is to emit a high-pitched shriek, followed by an involuntary bowel movement! Then and only then can you run in circles flapping your arms and howling like a banshee.

      1. I’m not howling or flapping my wings at all. Just keeping you all updated on the COVID-19 Keynesian ugly contest being reported in the international MSM.

    2. Case case, cluster cluster, boom. Are the Chinese doing genomic studies on the new outbreak? It could be the more contagious European strain. Come on China, let’s see how you stack up against double the spike proteins.

      “No cure in hand” is bs. We have HCQ and Ivermectin. We have the potential for a $2 10-minute pass-fail saliva strip test. Something has to give soon. We can’t do this limbo forever.

        1. Here is a chart you might find interesting, comparing the COVID death rates (in %) of countries which embraced HCQ to the rest of the world.

          https://twitter.com/niro60487270/status/1252301676330934273

          Here is another damning chart. Remember that notorious Lancet anti-HCQ hospital study? HCQ was banned and then reinstated when the study was found to be a fraud. As an example, HCQ was banned in Switzerland for 15 days. After a two-week lag, there was a spike in death rate which subsided after 15 days. In other words, you can actually SEE the effect of not using HCQ during the banned period.

          http://www.francesoir.fr/societe-sante/covid-19-hydroxychloroquine-works-irrefutable-proof

        2. HCQ has been explored almost from the beginning. As for Ivermectin, that one is still very new. AFAIK, it is not being used officially in any countries yet. But there is one extremely promising study from Bangladesh — peer reviewed — showing Ivermectin as basically a cure. A similar gold-standard trial is being conducted in Israel. Several other trials are underway, with results to be released this fall. The rest is a collection of anecdotal stories of cures from Australia and Latin American countries.

          Plot twist: one hospital study DID see an improvement in hospital patients using Ivermectin. Of all things, it was the fraudulent Lancet study that so decimated HCQ. So, at first Ivermectin was doubted because that study had issues. However, it’s not impossible that even a study with dicey data would still show a legit promise for another treatment. And other studies are quickly confirming the potential of HCQ.

          1. Focusing on the chart in the tweet, it jumped out at me that those other countries have populations that skew younger. In particular, lower or much lower proportions of people 65+, compared to the US.

            https://data.worldbank.org/indicator/SP.POP.65UP.TO.ZS

            BTW, I didn’t take time to validate whether those other countries are, in fact, using HCQ. Or, if they are using it, if control groups are being employed.

  6. Politics
    Americans tune in to ‘cancel culture’ — and don’t like what they see
    As Donald Trump seizes on it and elite journalists obsess over it, a POLITICO/Morning Consult poll shows significant concern about the practice.
    Supporters listen to President Donald Trump deliver a Fourth of July speech at Mount Rushmore during which he decried cancel culture as a political weapon of the left. | Alex Brandon/AP
    By RYAN LIZZA
    07/22/2020 04:30 AM EDT
    Updated: 07/22/2020 09:06 AM EDT

    One of the few things that Barack Obama and Donald Trump agree on is cancel culture.

    In the last year, as numerous public figures have become the targets of online campaigns by social media swarms, the former and current president have spoken out against the practice. “That’s not activism,” Obama said last November. “That’s not bringing about change. If all you’re doing is casting stones, you’re probably not going to get that far. That’s easy to do.”

    In a Fourth of July speech at Mount Rushmore, Trump said, “We want free and open debate, not speech codes and cancel culture. We embrace tolerance, not prejudice.” Speaking of the left, he added that “one of their political weapons is ‘cancel culture’ — driving people from their jobs, shaming dissenters, and demanding total submission from anyone who disagrees. This is the very definition of totalitarianism, and it is completely alien to our culture and our values, and it has absolutely no place in the United States of America.”
    …

    We were curious how much this debate over cancel culture — which has quickly morphed from a Twitter obsession for elite journalists to a campaign rallying cry for Trump — has permeated the public consciousness. We asked our polling partner, Morning Consult, to field some questions in our weekly survey and one surprising finding is the number of Americans who now agree with Obama and Trump and want to cancel cancel culture — or at least its worst aspects.
    …

    1. I am so happy that my time of previous employment working for Fortune 500 corporations and for the federal government as a contractor is over, forever.

      #CantCancelThis

    2. Boycotts and online shaming is still free speech, with libel laws offering some protection. No issue there. But I draw the line at people losing their jobs. Celebrities can handle it; they have millions. But cancel culture was threatening people who still have 20+ years of necessary work ahead of them and can’t afford a blacklisting of any kind.

      I also suspect that a LOT of people figured out that they too probably committed some cancel-worthy microtransgression in the past, and they themselves don’t want to be cancelled.

      1. I Amendment: Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

        If you can be fired with no recourse for exercising your Constitutional right to free speech, the Left has effectively nullified the Constitution.

        1. That is the argument being used by Colin Kaepernick. He claims he was fired for exercising his right to free speech. In actuality, he quit his job at one company. He applied to other companies, but nobody wanted to hire him on the grounds that he had a reputation for p!$$ing off his customers on company time. Plus he wasn’t very good at his job anyway.

          The Constitution does not guarantee that you will keep your job despite your speech. It only guarantees that you will not be gag-ordered or jailed by the government. If I were a car salesperson and screamed pro-Trump diatribes on the showroom floor and chased away customers, I would be fired in 10 minutes. But I wouldn’t be jailed. Fully Constitutional.

          The issue with cancel culture is that it does not distinguish between company time and private life. Right now, cancel culture is affecting celebrities and semi-public policy figures like journalists and university professors, where public and private life are pretty blurred. But it’s now leaking into the average workplace. Those are the people who can’t afford to lose their jobs for something they say on Facebook. (unless they say something specifically related to their employers.)

          1. Plus he wasn’t very good at his job anyway.

            Professional athletes forget just how short their shelf life is, especially in the NFL. And if you’re not a superstar, it’s very short.

            Kaepernick knows that he’s washed up, so he plays the victim and thus has a lucrative contract with Nike, for now.

  7. An informed opinion …

    ‘Trouble’s coming,’ warns short-selling legend who just cashed in a roughly $100 million winning bet – MarketWatch
    https://www.marketwatch.com/story/troubles-coming-warns-short-selling-legend-who-just-cashed-in-a-roughly-100-winning-bet-2020-07-27?mod=home-page

    (snip)

    ‘This market is setting up to be one of the great short opportunities of all time. Trouble’s coming, I don’t know when, but it’s coming.’

    That’s legendary short seller Jim Chanos, fresh off a $100 million win, casting gloom over the current state of the stock market in a recent interview with the Financial Times.

    Chanos, who once made a killing by shorting Enron and aims to make another one with his bearish bet against Tesla TSLA, +8.65%, just earned nine-figures by shorting Wirecard ahead of its collapse, according to sources cited in the FT story.

    Of the big Wirecard win, he said “it’s bittersweet. because short sellers put up with weeks and months of misery, and you feel good for hours and days.”

    Speaking of misery, his Tesla short is a mess, but Chanos, with $1.5 billion in assets under management, still maintains he’s got a winner on his hands.

    “Elon Musk has personified the hopes and dreams of this bull market,” Chanos said, adding that Tesla has “a culture of deception” and it “burnishes its results through aggressive accounting.”

    He claimed we’re in a “golden age of fraud,” describing the current market climate as rife with euphoria, FOMO and Trumpian “post-truth” politics — “a really fertile field for people to play fast and loose with the truth, and for corporate wrongdoers to get away with it for a long time,” he said.

    Chanos is certainly worth listening to, if the epic performance of his Kynikos Capital Partners fund is any indication. The long/short equity strategy, according to the FT, has delivered a 22% gain a year, on average, over the past 35 years to double the return on the S&P 500.

    1. A quick peek at that gold futures chart you posted suggests that the wheels are starting to come off the bus.

  8. The Rosedale and Moore Park area plunged 15.2 per cent from $3,687,292 to $3,127,643.

    Is that a lot?

  9. “Hong Kong’s retail property market is bracing for turbulent times as a street front shop in the world’s most expensive shopping district was sold at a 73 percent loss.

    Oh dear. That implies billions of Yellen Bux valuations have already evaporated from CRE in the entire district, not to mention Hong Kong writ large. Debauched currency heaven will soon be filled up at this rate, and undead Yellen Bux will roam the earth like zombies.

  10. “Australia’s property market could be left with a glut of stock as mortgage repayment holidays run out and government economic lifelines run dry.’

    The financial reckoning day is slouching closer as the make-believe “recoveries” created by central bank money-printing on a colossal scale are revealed to be a chimera and a fraud.

  11. ‘For some, the alternative is defaulting on their mortgage, the bank taking possession and walking away with no money and a bad credit rating,’ he said.

    For some? Try for tens of millions. The full magnitude of the fraud of Keynesian economics is going to be on full display once the cascading defaults overwhelm the ability of the central banks to bail out the “systemically important” banks watching their collateral get vaporized.

  12. But since April 2020, only 50 per cent of sales data is being made public. The figures show that in comparison to the second half of 2019, auction results or sales are now far less likely to be revealed.”

    Real Journalists colluding with REIC grifters to hide the magnitude of the cratering in real estate. I am Jack’s complete lack of surprise.

  15. ClownWorld Chronicles July 28, 2020 edition, the gofundme for deceased BLM/Antifa terrorist Garrett Foster has raised over $107,000:

    “murdered last night July 25th while attending a peaceful protest in Austin, TX … An unknown vehicle barreled into the crowd and this evil person shot and killed Garrett”

    https://www.gofundme.com/f/official-garrett-foster-memorial-fund

    Conveniently omitted is that he was pointing a loaded AK-47 at the driver, this is the official #Narrative, and this is why we don’t generate revenue for Real Journalists.

    1. Was anyone able to find a verifiable photo of Foster actually pointing the AK? 4chan doesn’t count.

      2. Several accounts I read suggested the driver incited things. Even if so, this might best be filed under the category, “better to be alive than right.”

        1. I’m guessing all of those accounts were written by Real Journalists who are infatuated with BLM and Antifa.

      3. “Peaceful protesters” should leave their weapons at home, and not threaten anyone with violence.

        1. And stop blocking roads and traffic. People are already stressed enough without having to deal with BLM/Antifa goons threatening them in their cars, with the full connivance of libtard authorities.

          1. The left has short memories for certain things. Such as Reginald Denny. The right not so much.

    3. and this is why we don’t generate revenue for Real Journalists

      Soros and company will continue to fund the useful shills.

  16. Hopefully the Sacramento, California housing market tanks and more real estate inventory becomes available to buyers.

    1. Don’t hold your breath. The shear amount of Bay Area cash looking for a home is inflating real estate prices throughout all of northern California.

  17. Carolina Beach, NC Housing Prices Crater 14% YOY As Coastal Property Market Turns Toxic On Rampant Mortgage Fraud

    https://www.zillow.com/carolina-beach-nc/home-values/

    *Select price from dropdown menu on first chart

    A noted economist stated, “A housing ‘recovery’ is falling prices to dramatically lower and more affordable levels by definition.”

    1. The Financial Times
      Coronavirus business update 30 days complimentary
      Coronavirus economic impact
      Federal Reserve extends emergency lending facilities by 3 months
      Programmes brought in to shore up financial markets during pandemic will now expire at end of year
      The Fed said the facilities had ‘provided a critical backstop, stabilising and substantially improving market functioning’
      © Leah Millis/Reuters
      James Politi in Washington and Colby Smith in New York 55 minutes ago

      The Federal Reserve is extending the emergency lending facilities it set up to shore up financial markets during the pandemic until the end of the year, in the latest sign of its concern that the coronavirus crisis will continue to weigh on the US economy.

      The board of the US central bank announced the decision on Tuesday as its monetary policymakers began a two-day meeting. The lending facilities, which were designed to support short-term funding and corporate debt markets and to offer loans to struggling midsized businesses, were due to expire at the end of September.

      “The three-month extension will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available to help the economy recover from the Covid-19 pandemic,” the Fed said.
      …

      1. Mr Market seems happy with the Fed’s announcement, reversing today’s early losses.

        1. Don’t confuse knee-jerk reactions by the algos with the broader markets, which are completely divorced from any underlying fundamentals. Ultimately the crushing levels of debt and fraud built up in these Ponzi markets are unsustainable, and each Fed injection of funny money is giving the addict less of a buzz.

    1. Given that about 2/3 of the unemployed were getting paid more to not work than to work, there is no excuse for this. They could but chose not to pay the rent.

        1. I read it somewhere, don’t remember where (maybe it was link posted here). But it makes sense, the bulk of the layoffs have hit people who make less than $25/hr ($1000 a week). To be honest, I wouldn’t be surprised if it was higher than 2/3.

    2. How the eviction crisis across the U.S. will look

      People of color are especially vulnerable.

      Seems like the yella fellas are making it work.

Comments are closed.