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Banks at Risk of Collapse Amid Expected Mass Defaults


Banks at Risk of Collapse Amid Expected Mass Defaults

As much as 30% of mortgage owners, and perhaps even more, may default in the next two months in what might be the biggest sudden mass default in modern history. “Some 30% of Americans with home loans (about 15 million households) could stop paying if the U.S. economy stays hobbled by shutdowns through the summer,” according to Bloomberg. Renters in particular are being hit hard due to no support from the UK government unless they were and are in a PAYE job where 80% of the wages are guaranteed. That’s a promise however. This mass administrative undertaking should take some time and thats while the civil service is in exceptional working practices due to the new flu. For the self employed Brits get no help until June, and even then barely any help at all, as the government spent hardly a couple of days to come up with what must be a huge administrative undertaking.

Banks at Risk of Collapse Amid Expected Mass Defaults

In America they’re taking a more scattered gun approach of just giving all “free” money, but merely $1,000 for most of them. Not enough to cover even half the rent for plenty. Those that were just about managing, a demographic so often talked about, are now pretty much sinking. No industry is spared, except for the government which keeps operating and arguably the food and supermarkets industry which is seeing a boom. The rest of the private sector is now closed, all so relying on the public sector, with unemployment claims climbing and climbing in USA. Someone obviously has to process them and you can probably imagine the hecticness that must be going on in those offices or work from home laptops as a system designed to deal with at most 500,000 claims, maybe a million, now has to deal with 10 million and you would think very much climbing. It is more the suddenness of it all that may cause most damage to the economy rather than the almost full loss of production. Read More...