Mass Evictions , Homelessness and Property Prices Collapse Coming

Mass Evictions , Homelessness and Property Prices Collapse Coming






25% of New York City's apartment renters haven't paid since March. Evictions surge as cities suspend moratoriums. Twenty-eight million, or one in five Americans who live in households that rent, are facing mass evictions. Half the country's rent moratoriums are over. Courts are filling up with eviction cases. And even if moratoriums continue landlords cannot bear the burden of making the mortgage anyway, so what choice will either landlord or tenant have if both are unable to pay and foreclosure starts? You are starting to see where this is going? The whole system is bankrupt. Americans are about to get a rude awakening. The coronavirus pandemic could result in some 28 million Americans being evicted and becoming homeless. By comparison, 10 million people lost their homes in the Great Recession. We have never seen this extent of eviction in such a truncated amount of time in our history. We can expect this to increase dramatically in the coming weeks and months, especially as the limited support and intervention measures that are in place start to expire. A lot of the tenants are living in fear, day to day, not knowing if they’re going to receive a stimulus check, not knowing if they’re going to receive an unemployment check. They know that date is coming when legally they know their landlord will be able to get a court order to officially evict them. They know they’re not going to be able to pay that money. States that have already lifted the moratorium have seen a dramatic spike in eviction cases. And the problem gets worse, that is, because when rental income for landlords collapses, they will experience financial hardships as well, including servicing mortgage payments and inability to cover other building-related expenses (if those are fixed or variable costs). Over half of mortgage payers haven't made a payment in months. Have all the local governments given the landlords a pass on property taxes? Nope! have the banks given landlords a break on mortgage payments? Nope! Do the tenants expect services like garbage collection, utilities, maintenance? Yes! So why should the landlords take a massive hit? Private property, not government housing. Most renters got a stimulus check, and some get that extra 600 on top of their unemployment. Did they even talk to the landlord and pay something? I bet not, but that new TV sure is nice! Landlords have bills too, like a mortgage, property taxes, upkeep, etc. Who is paying them? These renters have skipped months of rent, just because they can. Sure, a small minority are truly screwed by the pandemic, but most are just commies that want free stuff. Now that all that back rent has piled up, they will never be able to catch up. This isn't government housing. A landlord who owns the property that people stopped paying rent on; he still has to continue making mortgage payments while these freeloaders refused to pay. More than Mortgage. There are property taxes, insurance, outside maintenance(if there is any soil around). All still go on. Even with forbearance and government prohibited evictions, the facilities require maintenance. Most landlords don't have pure equity in their buildings. They have debt. Equity gets wiped out first. Lots of equity will get wiped out. Sure, there is some old geezer who owns his buildings free and clear. He'll survive, but not for long because he's an old geezer. In many cases, landlords are just cheap property managers for the banks and the sucker to take most of the losses if the deal goes south. A few months of missed plumbing repairs, pest control, roofing repairs, and heat-induced brown-outs, will drive rent-free and jobless occupants to arson. And who wants to buy a building full of non-paying tenants! Everything's going to be revalued, lower. That $40 million apartment complex is now $15 million, and the rent for a two-bedroom has dropped from $4K to $1.5K. And the vacancy rate is rising. The Fed can print up as many fake fiat dollars as they like. They can't replace a good job and steady income. Unemployment is going to reach catastrophic levels, like 25%. All of this is going down, very, very hard. People are going to have to come to terms with some very tough decisions, like buying food rather than paying the mortgage, etc. You can't strangle the middle class, and small business owners and expect am economy to recover. The destructive revolts are just an outward reflection of what is happening economically. Socialism and big government have killed this country, yet the media (i.e., the billionaires who own those mouthpieces) continues to provide the socialists with cover and credibility. Like a good communist mayor, DeBlasio is trying to destroy the city in order to rebuild it in a communist way. He doesn't care about the taxpayers and businesses at all. He is only concerned about support among his parasitic supporters. The city is doomed. New York state is also doomed. They want to get rid of the Peasants from Manhattan so that District 1 can be established for the Technorati. Evict the tenants, condemn and raze the buildings and erect new IoT smart city towers with 5G in every room to house the vaccinated/sterilized, mask-wearing sheep. If this goes on too long, we'll see a market realignment. Landlord evicts a tenant for non-payment of rent, the landlord can't replace tenant (as other prospective tenants were presumably evicted from somewhere else) or can't replace them at the rent level they want or need, the landlord can't pay the debt on the property, landlord defaults and bank seizes property, the bank sells the property to recoup loan losses at distressed sales price, new landlord puts lower cost property back on the market at lower rent level due to lower debt service costs, local government takes revenue hit due to falling property tax values. And on and on. Stay liquid, my friends. There may deals to be had in the future. Escape the big cities. Work from home and buy property in the mountains. Large cities are a thing of the past. They are relics from times of industrial strength. The modern metropolis has outlived its usefulness. Housing prices have doubled in 8 years, have wages doubled? We now live in a casino economy, insurance, banks, and government. Ultimately, all this rolls up to the banks. And that's right in the Fed's wheelhouse. The big banks report earnings next week. They've been deferring credit card payments, mortgages, personal loans, car loans, etc. For months, and, if you are swayed by the media hype of the virus still spreading, it's only going to get worse. Wait until schools don't open, or do, and the teachers strike. We're in a mess that won't be easily fixed. A bank collapse would probably be the best solution. Screw them like they've screwed everybody else. Get rid of the Fed, bankrupt all the Wall Street hotshots and reprice. Deflation is going to wreck everything. Too many defaults are coming at them. See what their loan loss reserves look like this quarter and then triple that, and it still won't be enough. They're the ones primarily responsible for the debt implosion that's coming. They should all have been bankrupt in 2008. This is it. Instead of trying to prop everything up, they should have just agreed to put everything on freeze, all the way up to the lenders until it blows over. It’s like the vehicle blew a tire, and we just decided to floor it to try to make up for it, ruining the axle and more while going nowhere fast. Probably doesn’t help that we’re dealing with dishonest players who want their billions for a vaccine, among other nefarious abominations. You are starting to see where this is going? The whole system is bankrupt. How long till the sheep see that petrodollar is DEAD? Government fiat money is about to become as worthless as Soviet rubles. We're living through a prequel to Atlas Shrugged. The sad part is we were warned aplenty (she wrote it in 1956). Listen to the words being used. It's as if the story is coming to life in 21st century America. Just take all your money out of the bank and stop paying on all loans. The banks will collapse, and we will be free. It really is that simple. If people withdraw consent to our own slavery, it ceases to be. No, I'm not kidding. Things are going to get quite interesting, indeed. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely totally on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. The wave will grow as millions of more people lose their jobs as the Depression ripples through the economy. Property owners are screwed for sure, and tenants a few months behind in rent won't recover, so eviction is the future there, and being six months behind in mortgage payments is impossible to recover from, too, so many of the millions in forbearance now will probably lose their homes. Just as happened in the Great Depression. Anticipate the bottom falling out of the Real Estate markets EVERYWHERE and many millions impoverished and homeless traveling to California to live in their car or set up a tent in the good weather. If you keep less than a year of savings to protect yourself from a financial downturn, then you are living on the edge. I do not see any recovery. I do not see improving employment. I do see everything falling apart under the people who are still working, until the point where working is pointless because there is nothing to buy or pay for. Then we all get acquainted with the human animal. Worse than lions for their cunning. Primitive violence is always the answer for Neanderthal man. No shortage of Neanderthals in big cities these days. Look for two more stimulus checks, August and October, in order to drag the system along through November 7th. After that, it will prove impossible to discontinue the gravy train, and UBI payments will be here to stay permanently (or at least until the big crash). Seriously. How long is this crap going to go on? We are going to pay people’s mortgages, rent, payroll, food bills, medical forever ???? It’s time to let it go. Reset the bubble economy to reasonable levels. The solution for the cities is probably to tax the hell out of the countryside with the spoils going to the cities. This is precisely what is going to happen. In Canada, they are getting ready to tax well-water because to their way of thinking - country folks are stealing the "people's" water. Wait for the whole of the USA to have to support New York federally. A New York tax to support the Communist city USA wide. Baltimore City has been trying to merge with Baltimore County for years to steal MORE from the suburbs. The FED bailed out Wall Street by creating money out of thin air, and now they expect the people to pay for their casino games with higher taxes. Massive evictions, homelessness, and empty shelves are coming soon, welcome to the hunger games. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!

















Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics