One the one side of the equation those who can afford to move out of the city are creating a housing boom
However, those who can't afford to move are deliquient or took mortgage forbearance which means some time this fall the total sum of missed payments is due
It is estimated that 30 % of all home mortgage are in some stage of foreclosure, unless the home owner finds the money
Many home owners are trying to sell as they realize they can not afford their house, for various reasons mostly due to job security
Will the Fed bail out the banks with mortgage default loans, will the Fed bail out home owners or will the defaults, added to the many small business defaults and other bank loan defaults simply add another layer to eventual financial failure of the entire economy, if the Fed is unable to print enough money with out putting inflation at risk with so much printed money
The chinese are already concerned about the value of US assets as they think the USD will lose value
Is the down trend in the USD just temporary or the start of a bigger down turn
Considering the number of bank defaults the banks will have to absorb on their profit and loss statement, plus business looted and burned, which means some thing, is there simply too much going on to keep a healthy USD as the USA falls further into chaos
Looking further into the future, if the Dems win, will the transfer of wealth out of the country with the Paris Accord be the final straw that breaks the back of the USD
Things just seem to be going from bad to worse and any one possibility, some time in the near future will surely break the USD
If china is talking the USD then that makes me think some thing will happen.
I don't know what it will be but some thing will break the USD to much lower values
If the dems win, its hard to say how fast the cultural revolution will progress. The extreme left is far from the majority but gaining power rapidly. Regardless, it IS and WILL progress.
It might take as long as 10 years for the US and most of the Western World to embrace socialism but I would guess much less time than that.
Guess is the operative word.
Alot of things can happen between now and then, but one of them WILL NOT be old conservatives rising from the dead to vote for the way things were. And one of them WILL be people that are teenagers now, will reach the voting age and most are MORE liberal than the previous generation.
It is estimated that 30 % of all home mortgage are in some stage of foreclosure
Banks are looking at BK portfolios with in their own bank, by home owners. This number includes any missed payment over 30 days
One other interesting tid bit
A resturant in Chicago successfully argued in BK court that they did not have to pay rent due to force majeure
When the gov't shut down their business they could only do take out
The judge ordered that rent equal to income from take out be paid as rent
Now the courts will have a whole new dimenson of BK arguements for both mortgage deliquients and rent payments missed if force majeeur is a successful arguement in BK court
This shut down is only starting to become visible in the amount of economic damage done and will become increasingly visible in the months ahead
All you have to do is go to your local town, city and look at the number of For Lease signs. That doesn't include the number of business with closed signs on the door that will never re-open
If you haven't noticed the signs of distress then you don't get out very much
The hidden damage in house holds is not so visible but it is there, trust me
Try finding a resturant with a sit down table inside, out of the elements
I found one resturant with sit down table and that was out side on a patio, with tables six feet apart. Now how much business can you do with only partial space being used with full cost of staff cleaning etc after every customer
Think Americian air lines will go BK???
BK is every where
Even the farm scene is in trouble come next yr or there after if Biden shuts down the gov't subsidy programs
The Fed is the only life line keeping the country afloat and others are noticing, the extreme amount of liquidity pumped into the economy
If BK still persist, in spite of liquidity, that is what investors see re: the USD
The USD will simply lose value
I don't really care if you believe me or not
Time will tell