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Tuesday, March 31, 2020

The 2 achilles' heels of the US economy. - Part 3

https://www.ccn.com/did-the-fed-just-accidentally-trigger-a-housing-market-crash/

The US housing market is starting to crumble because of the MBS.

Furthermore, St. Louis FED is projecting about 50m unemployment in Q2 with an employment rate of 32%.

https://www.stlouisfed.org/on-the-economy/2020/march/back-envelope-estimates-next-quarters-unemployment-rate

This high unemployment rate is bad news for the housing market too.

Just as we had expected, the US corporate and mortgage debts are starting to blow up.

https://sg-stock.blogspot.com/2020/03/the-2-achilles-heels-of-us-economy-part.html

1 comment:

Eric Ho said...

https://finance.yahoo.com/news/nobody-knows-happen-rent-comes-170525216.html

Rental defaults are coming!

Many tenants cannot pay their rentals and many landlords depend on the rentals to pay for their mortgages. Many banks will end up with many defaulted houses soon.