"Mortgage Market Meltdown: Tens Of Millions Face Eviction - Massive Housing Crisis Looming!"

"Mortgage Market Meltdown: Tens Of Millions Face Eviction - 

Massive Housing Crisis Looming!"

by Epic Economist

"Facing a tidal wave of insolvency, the US housing marketing is barely staying afloat. According to a recent report, the Federal Bank and its money printer are coming for the rescue, with one trillion dollars in liquidity to be injected on the US mortgage and real state markets. Even though it may sound encouraging for investors, the effects of this stimulus are likely to turn out badly for the economy, and in the long run, it will only serve as one more needle that will press the US debt bubble to burst and splatter blood all over the economy. That's why today, we are going to discuss about these recent reports and examine what is hidden between the lines of the housing market crash. 

Thereby, with missed rental payments and mortgage defaults piling up like never before, in the midst of the looming real estate chaos, the Centers for Disease Control and Prevention (CDC) enacted public health emergency powers to impede landlords across the country from evicting tenants. Likewise, the amount of mortgage bonds the Federal Reserve has been purchasing since March has stacked up to 1 trillion dollars, capturing 30% of the country’s outstanding mortgage bonds.

The winter will be shortly coming and will bring with it many more challenges for the Americans to handle, mostly due to the government decrees to shut down more than 60% of the nation’s businesses and the lockdown mandates, giving them no choice of reinsertion on the job market and now not even willing to continue to assist its citizens with unemployment checks.

That is to say, while the stock market stays resilient through ups and downs, down here, back into Earth's reality, millions of Americans are struggling to pay rent because of the US government’s harsh lockdown tactics, many of which can't afford rent at all, because it has been impossible to make ends meet with all the overwhelming impacts of this multi-faced crisis. Country homeowners and rental tenants are facing a meltdown all across the country and the signs are showing in a number of hard-hit states. The obstruction in the economic activity, as a consequence of a lack of practical measures to manage the health-outbreak-induced shutdowns, had caused the neutering 60% of the US economy and now renters and homeowners nationwide are serious distress.

In short, for the other part of the narrative, what the Fed decided to do now, a strategic timing considering the incoming elections, can backfire later. This supposed act of kindness that just happened to occur in the verge of the presidential election, is probably just a mask to enforce authoritarian measures on legal terms. To further explain, the situation has gotten so extreme on the rental market that there have been a few eviction moratoriums invoked in some states and on the federal level, and the CDC is already using its leveraging emergency powers to avoid the rental crisis to expand even more before the elections.

According to a recent analysis by Jamie Redman: "the CDC’s order is called the “Temporary Halt in Residential Evictions to Prevent the Further Spread of Covid-19.” The CDC’s moratorium will extend the eviction ban leverage in the CARES Act and will expire at the end of 2020. Reports say the moratorium will cover roughly 12.3 million tenants who live in single-family homes backed by a federal mortgage, or an apartment complex that is financed by the government as well. Even though critics have questioned the CDC’s move, the agency utilized emergency powers granted by the Public Health Service Act."

To make it clear, we are not protesting the fact that people will have a roof over their heads for the time being. We're questioning the intentions behind the actions, because if they haven't done much so far to indeed help and support the population, we can be misled that they are starting now with no second intents. Keep in mind that the money they used to purchase these real state holdings were printed out of thin air, and inflation is not something an economy can hide from forever. As Redman concluded, "with the central bank leveraging massive buys of outstanding mortgage bonds and the CDC’s latest emergency powers use, it is hard these days not to envision the U.S. real estate market as a house of cards."

Epic Economist website: https://www.epiceconomist.com