Housing Crash 2: We Have Never Seen Mortgage Delinquencies Rise This Fast In U.S. History

If our economic numbers were going to improve substantially, now would be the time for it to happen.  The COVID-19 pandemic seems to have hit a plateau for the moment, the civil unrest in our major cities has been reduced to a dull roar, and millions of Americans that originally lost their jobs have now gone back to work.  If we are going to get some glimmers of hope for the economy, this is when we should see them, because the environment does not look promising once the summer ends.  Unfortunately, the numbers that we keep getting just continue to directly contradict the narrative that any sort of a “recovery” is taking place.  In fact, the Mortgage Bankers Association is reporting that the delinquency rate on residential mortgages shot up a whopping 386 basis points last quarter…

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 8.22 percent of all loans outstanding at the end of the second quarter of 2020, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate increased 386 basis points from the first quarter of 2020 and was up 369 basis points from one year ago.

When I first saw that number, I could hardly believe it.

386 basis points in a single quarter?

I had never heard of such carnage before, and the Mortgage Bankers Association is telling us that this was “the biggest quarterly rise” in the history of their survey…

“The COVID-19 pandemic’s effects on some homeowners’ ability to make their mortgage payments could not be more apparent. The nearly 4 percentage point jump in the delinquency rate was the biggest quarterly rise in the history of MBA’s survey,” said Marina Walsh, MBA’s Vice President of Industry Analysis.

The delinquency rate on FHA loans is particularly troubling.

During the first quarter, the delinquency rate on FHA loans was 9.7 percent, but by the end of the second quarter that number had shot up to 15.7 percent

Fast forward to today, when the dam of pent up mortgage delinquencies cracked some more, with the Federal Housing Administration reporting that its mortgages which represent the affordable path to homeownership for many first-time buyers, minorities and low-income Americans, now have the highest delinquency rate in at least four decades.

The share of delinquent FHA loans rose to 15.7% in the second quarter, up a whopping 60% from about 9.7% in the previous three months and the highest level in records dating back to 1979, the Mortgage Bankers Association said Monday. The delinquency rate for conventional loans, by comparison, was 6.7%.

We have never seen anything like this before, and these numbers seem to indicate that we are heading for a crisis that will be even worse than the subprime mortgage meltdown that we witnessed during the last recession.

Of course the reason why there are so many delinquencies is because tens of millions of Americans have lost their jobs in 2020.

According to the MBA, mortgage delinquency rates are shooting up the fastest in the states where the job losses have been the most severe

Mortgage delinquencies track closely with the availability of jobs. The five states with the largest quarterly increases in delinquency rates were New Jersey, Nevada, New York, Florida, and Hawaii – all with a prevalence of leisure and hospitality jobs that were especially hard-hit by the COVID-19 pandemic.

The fastest way to fix this emerging crisis would be to get millions of newly unemployed Americans back to work as quickly as possible, and recently there has been some modest improvement in the employment numbers.

However, it is becoming very clear that millions upon millions of the jobs that have been lost during this pandemic are never coming back.  In fact, one recent survey found that almost half of all workers that have been laid off during this pandemic now consider their jobs losses to be permanent

In April, roughly 2 in 10 households experiencing job loss considered their layoff permanent, while the remaining majority believed they would return to their former jobs within a few months. Now, as states have stalled or reversed reopening plans and the coronavirus outbreak worsens, nearly half of unemployed workers believe their jobs are not coming back, according to a poll from The Associated Press-NORC Center for Public Affairs Research.

What this means is that millions upon millions of Americans will continue to miss mortgage payments, and a massive wave of foreclosures looms in the months ahead.

Needless to say, it won’t be a happy time for our nation.

Meanwhile, more businesses are going belly up with each passing day.

For example, we just learned that as many as 300 Pizza Hut locations are going “to permanently close”

Up to 300 Pizza Hut restaurants are slated to permanently close following the bankruptcy of one the chain’s largest franchisees.

NPC International, which filed for Chapter 11 in July, announced an agreement Monday with Pizza Hut’s owner Yum! Brands (YUM)to close roughly a quarter of its restaurants and sell the remaining locations. Specific restaurants and timing have not yet been determined, but NPC said a “substantial majority” of affected locations have dining rooms.

This is a great tragedy for those of us that love pizza, because out of all of the major pizza chains in the entire country nobody makes better pizza than Pizza Hut does.

And yes, I am being quite serious.

As soon as I could walk my parents began taking me to Pizza Hut, and I have been enjoying their pizza ever since.

Unfortunately, I don’t live anywhere near a Pizza Hut today, and so I don’t get to enjoy their pizza very often anymore.

In any event, a lot more companies are going to be waving the white flag in the months ahead.  Economic turmoil is one of the core pillars of “the perfect storm” that is now upon us, and after this current lull our economic problems are going to start accelerating once again.

Sadly, most Americans simply do not understand what is happening.

Most Americans still seem to think that everything is going to turn out just fine somehow.

What they don’t realize is that the whole system is starting to steadily unwind, and things are going to get really ugly as we continue down this road.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The Housing Crisis Of 2020: Millions Of Americans Missed Their Last Rent Payments, And Tens Of Millions Could Soon Be Evicted

Week after week we continue to get economic numbers that are absolutely horrific, and it appears that we are heading for a housing crisis that will be even worse than what we witnessed in 2008.  Back then, millions of Americans lost their homes, but this time around it could be tens of millions.  I know that a statement like that may sound overly dramatic, but I believe that many of you that feel that way may change your minds after reading this entire article.

In order to make rent and mortgage payments, Americans need paychecks coming in, and right now people continue to lose jobs at a pace that is hard to believe.

On Thursday, we learned that another 1.3 million Americans filed new claims for unemployment benefits last week.  That was worse than expected, and it represented the 17th week in a row when the number of Americans filing new claims for unemployment benefits exceeded one million.

And as I keep reminding my readers each week, the all-time record for a single week prior to this year was just 695,000.

Overall, more than 51 million Americans have filed new claims for unemployment benefits over the last 17 weeks, and that is by far the largest spike in unemployment in all of U.S. history.

In fact, the numbers that we have been seeing should theoretically be close to impossible.  In February, the number of Americans that were employed peaked at an all-time high of 152 million, and the number of people that have filed new claims for unemployment since that time represents more than a third of that total.

I know that some people are hesitant to use the term “economic collapse”, but what else are we supposed to call this?

Incredibly, one expect quoted by USA Today is telling us that the number of Americans filing new claims for unemployment benefits could actually “increase” next week…

The rollbacks may spark a new wave of layoffs, especially in hard-hit states like Texas, Florida, Arizona and California, and possibly even push the claims totals higher.

“Next week could easily see an increase” in initial claims, economist Ian Shepherdson of Pantheon Macroeconomics wrote in a research note.

Needless to say, this tsunami of unemployment has resulted in a whole lot of people not being able to make their rent payments.

In fact, the Census Bureau has announced that 11.6 million Americans live in households that did not make their most recent rent payments…

According to the latest weekly Census Bureau data, 11.6 million people live in households that missed their last rental payments.

More than 22 million Americans also have no, or only slight confidence, that they will be able to make next month’s rental payments, the figures show.

Ouch.

Large numbers of Americans are getting behind on their mortgage payments as well.  The following comes from Wolf Richter

In April, the share of all mortgages that were past due, but less than 30 days, soared to 3.4% of all mortgages, the highest in the data going back to 1999. This was up from 0.7% in April last year. During the Housing Bust, this rate peaked in November 2008 at 2%

In the months ahead, millions of Americans will fall so far behind on their rent payments that they will be facing eviction.

And millions of other Americans will fall so far behind on their mortgages that they will be in serious danger of losing their homes.

According to Emily Benfer, we could potentially see a total of “20 million to 28 million people” get kicked out of their homes in the months ahead…

“We have never seen this extent of eviction in such a truncated amount of time in our history,” Benfer said when asked about how the current homeless crisis compares to the 2008 housing crisis.

She continued: “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. About 10 million people, over a period of years, were displaced from their homes following the foreclosure crisis in 2008. We’re looking at 20 million to 28 million people in this moment, between now and September, facing eviction.”

We have never seen anything like this before.

And of course Benfer is assuming that there won’t be another major crisis between now and the end of the year.

So what happens if we get to September, October and November and things in this country start going absolutely haywire once again?

The closer we get to the election, the higher societal tensions will run, and they are already so high that we could see a major eruption at literally any moment.

And I should also mention that the $600 weekly bonus payments that were keeping so many unemployed Americans afloat will be terminated at the end of July.  Once those payments stop, millions upon millions of unemployed workers will have a much, much more difficult time making rent and mortgage payments.

Most Americans believe that “the worst is behind us”, but the truth is that we are sleepwalking into an unprecedented economic nightmare.

If you follow my work on The Most Important News, you already know how concerned I am about the end of this year and beyond, and I will be laying out precisely what I believe is coming in my new book which will be released later this month.

The “perfect storm” which I have mentioned so many times over the last couple of years is now here, and most Americans are completely and totally unprepared for it.

I would very much encourage you to take the summer months as an opportunity to make the preparations that you need to make for the chaos that is approaching.  As I detailed two days ago, we are already witnessing nationwide shortages of aluminum cans, soda, flour, canned soup, pasta and rice.  As the problems in our nation intensify, the shortages will only get worse.

Of course in order to store up supplies you must have somewhere to put them, and for tens of millions of Americans it is going to be a real struggle just to keep their homes during the months ahead.

It looks like we are facing a housing crisis that is going to be far worse than anything that we experienced during the last recession, and unless Congress starts making money rain from the sky it doesn’t appear that there is any hope of stopping it.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Here Is Why The U.S. Economy Would Continue To Crash Even If All The Lockdowns Were Lifted Immediately…

COVID-19 has created an enormous amount of fear, and that fear is doing far more damage to the economy than the actual virus is.  In an environment of fear, financial institutions become a lot tighter with their money, and that inevitably causes economic activity to slow down.  For example, just consider what happened in 2008.  Mortgage lending standards suddenly became much more strict, and that greatly contributed to the horrific housing price crash which left millions upon millions of Americans underwater on their mortgages.  Unfortunately, this coronavirus pandemic has created a wave of fear that is far greater than what we experienced during the last recession, and that has enormous implications for the months ahead.

Extremely loose lending standards helped create debt-fueled “booms” throughout our economy in recent years, but now lending standards are going in the complete opposite direction very rapidly.

For instance, Chase is now requiring a credit score of at least 700 for all new home loans, and they are one of the financial institutions that is now requiring a down payment of at least 20 percent

A Chase spokesperson confirmed that starting April 14, new mortgage applicants will need a minimum credit score of 700 and a down payment of 20%. Refinancing applications for non-Chase mortgages will also need the same score. Chase didn’t disclose its previous lending standards but the average downpayment for first-time home buyers is around 6%, according to a 2018 survey from the National Association of Realtors.

If you own your home, would you have been approved for a mortgage under the new Chase standards?

And Chase is far from alone.  In fact, most major mortgage lenders have now tightened up, and Redfin is estimating that about a quarter of all home buyers last year would not have qualified under the new standards.

So if you remove about a quarter of all buyers from the marketplace moving forward, what happens to the housing market?

Yes, there will be an implosion, and it will happen no matter whether coronavirus lockdowns are in effect or not.

And home equity loans are going to be hit even harder.  As I discussed last week, Wells Fargo is no longer taking HELOC applications at all.

So now matter how good your credit is, you simply cannot get a home equity line of credit from Wells Fargo at this point.

This is what fear does.

We see similar things happening in the credit card industry.  Standards have been greatly tightened for new customers, and in some instances existing customers are having their limits slashed or their cards suddenly canceled.  The following comes from Newsweek

Analysts warn that credit card companies are lowering credit limits and canceling cards—often without warning—amid the pandemic-induced economic crisis, just as they did during the Great Recession.

If you think that this won’t have a dramatic impact on the U.S. economy, then you probably haven’t been paying attention.

Our economy is a consumer driven economy, and if consumers don’t have access to easy credit there is no way in the world that economic activity will return to previous levels.

Of course even if they did have access to easy credit, many Americans are so afraid of this virus that they have no intention of resuming normal economic patterns any time soon

Here’s hoping you enjoyed the last movie or concert you attended, because if the results of a new survey are accurate, it may be a long, long time before such events are ever popular again. According to the research, 40% of Americans plan to avoid public spaces unless “absolutely necessary” long after the coronavirus pandemic has subsided.

The survey, commissioned by Vital Vio, asked 1,000 U.S. adults about how they envision every day life in the wake of the coronavirus. All in all, it looks like there are suddenly a whole lot more germaphobes in the land of the free. Over four in five (82%) said they are now more aware of, and concerned about, cleaning protocols in public areas. Additionally, 58% are more suspicious about their friends’ and family’s hygiene habits.

And a lot of companies are also going to be extremely hesitant to “return to normal” because of the threat of lawsuits.

Earlier today, I was stunned to learn that 771 coronavirus-related lawsuits have already been filed…

Hundreds of lawsuits stemming from the coronavirus pandemic are rapidly amassing in state and federal courts, the first wave of litigation challenging decisions made early during the crisis by corporations, insurance companies and governments.

Claims have been filed against hospitals and senior-living facilities, airlines and cruise lines, fitness chains and the entertainment industry – 771 as of Friday, according to a database compiled by Hunton Andrews Kurth, an international law firm tracking cases that emerge from the pandemic.

Isn’t that insane?

I have repeatedly warned my readers that it will be exceedingly difficult to “return to normal” in our overly litigious society, but even I didn’t expect so many lawsuits so soon.

And this is just the beginning.  Eventually there will be thousands upon thousands of coronavirus lawsuits, and they will tie up our courts for the foreseeable future.

This pandemic just seems to be magnifying everything that is wrong with our society, and at this point the future looks so bleak that even perpetually optimistic Warren Buffett is throwing in the cards

A 95% plunge in passengers. Billions in losses. A rush for new debt. A recovery that executives expect to take years. Coronavirus is roiling the airline industry and the Oracle of Omaha has seen enough.

Warren Buffett told investors Saturday that Berkshire Hathaway has sold its entire stakes in the four largest U.S. airlines — AmericanDeltaSouthwestUnited — as the pandemic upends another bet on the sector that the famed investor had shunned for years before a surprise return in 2016.

Buffett understands that fear of this virus is going to paralyze air travel for a very long time to come, and he is getting out while he still can.

But if our society cannot even handle COVID-19, what will things look like once much worse things start happening?

It has been sobering to watch how rapidly our “snowflake society” has melted during this pandemic.

Now virtually the entire nation is paralyzed by fear, and the once great U.S. economy is crashing all around us.

And the really bad news is that this is just the beginning…

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

35 Reasons Why You Should Move Away From California

Wouldn’t it be wonderful if there was a “reboot” button for an entire state?  Because the truth is that if an entire state ever needed to completely start over it is the state of California.  At this point it has become the epicenter for just about everything that is wrong with America, and each year it just keeps coming up with new ways to become an even worse cesspool of social decay and depravity.  Millions of people have already left the state, and millions more are thinking of leaving.  One recent survey found that 47 percent of all Californians are thinking about moving out of the state in the next five years, and a different survey discovered that 53 percent of those currently living in the state would like to leave.  If about half the people in your state are seriously considering leaving, it is safe to say that things have gone horribly wrong.  But instead of changing course, those running California continue taking the state down a very self-destructive path.

It is such a shame, because California should be one of the greatest places in the world to live.  The weather is wonderful most of the year, the state still possesses extraordinary natural beauty, and the tech industry provides plenty of high paying jobs.

When I was growing up, millions of young Americans dreamed of moving there and living “the California dream”, and when I was a young man I seriously explored the possibility of moving there myself.

And the truth is that a lot of great things have come out of the state.  The following comes from a recent article by Ann Coulter

In the last century, every great thing started in California: surfing, jeans, Disneyland, tax revolts, McDonald’s, movies, car culture, the Grateful Dead, right on red turns, Merle Haggard, skateboarding, Apple computer, and the last two elected Republican presidents not named “Bush.”

But now I don’t know why anyone would want to live there.

If you currently live in California, I am about to tell you a whole bunch of reasons why you should leave.  In fact, if I could get everybody to leave the state, I would.

However, if you feel specifically called to stay, then that is what you should do.  Without a doubt, light is needed the most where things are the darkest, and California needs as much light as it can get right now.

Unfortunately, I believe that it is too late for the state as a whole.  It is headed for a date with destiny, and most of the nearly 40 million people that live there have absolutely no idea what is coming.

If you live in the state and you do not know what you should do, I would get out while you still can.  The following are 35 reasons why you should move away from California…

1. Incredibly high taxes.  At this point, California has the highest marginal tax rate in the entire country.

2. Absurd housing costs.

3. The median home value in the state is now more than half a million dollars, and that is about twice as high as the national average.

4. It has been estimated that it now takes approximately $350,000 a year to live a middle class lifestyle in the city of San Francisco.

5. Endless wildfires.

6. Epic mudslides.

7. Horrific traffic jams.

8. Los Angeles has the worst traffic congestion in the entire world.

9. The education system is awful.

10. Medical tyranny.

11. One of the highest poverty levels in the United States.

12. Thousands of drug addicts are literally pooping in the streets.

13. Almost half of all the homeless people in the entire nation live in California.

14. The state is literally being overrun by millions of rats.

15. Los Angeles has been ranked as the second most rat-infested city in the country.

16. At this point things are so bad that even Los Angeles City Hall is being overrun by rats.

17. Illegal immigration is out of control, and the sanctuary cities in California are making things even worse.

18. Rising gang activity.

19. High crime rates.

20. There is now a law in California that protects shoplifters.  So for those that enjoy shoplifting, this might actually be a reason to move into the state.

21. The drug war that has been raging in Mexico is increasingly spilling across the border.

22. California has been ranked as the worst state in the nation to do business year after year.

23. California is also one of the most litigious states in the entire country.

24. The once pristine beaches in the state are now being “completely overrun with fecal bacteria”.

25. Nancy Pelosi.

26. Kamala Harris.

27. Governor Gavin Newsom.

28. The lieutenant governor, the attorney general, the secretary of state and the state treasurer are all Democrats.

29. Democrats make up nearly two-thirds of the California State Senate.

30. Democrats make up more than two-thirds of the California State Assembly.

31. Both of the U.S. senators and 46 out of the 53 members of the House of Representatives that California sends to Washington are Democrats.

32. Much of the population is openly hostile to those that identify as conservatives.

33. California has been on the cutting edge of America’s moral decay for decades.

34. There have been more than 100,000 earthquakes in the state so far this year.

35. One day the “Big One” will hit California, and the geography of the state will be dramatically altered.  The devastation will be unlike anything we have ever witnessed, and the death toll will be unimaginable.

If Donald Trump wins the next presidential election, there is a group of activists in California that plan to get a “Calexit” referendum on the ballot for the following election.

Those activists don’t want to be part of a country that would elect Trump two times, because they consider their values to be completely and utterly incompatible with Trump’s values.

But what is happening in this nation is far bigger than just Trump.

To me, it would be wonderful if the rest of the nation decided that their values were completely and utterly incompatible with California’s values.  We desperately need to turn America around, and the way to do that is to head in a completely opposite direction from the way that California is going.

Sadly, it does not appear that is going to happen.  California may be racing ahead of most of the rest of the country, but our final destination will be the same.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

The Deutsche Bank Death Watch Has Taken A Very Interesting Turn

The biggest bank in Europe is in the process of imploding, and there are persistent rumors that the final collapse could happen sooner rather than later.  Those that follow my work on a regular basis already know that this is a story that I have been following for years.  Deutsche Bank is rapidly bleeding cash, they have been laying off thousands of workers, and the vultures have been circling as company executives desperately try to implement a turnaround plan.  Unfortunately for Deutsche Bank, it may already be too late.  And if Deutsche Bank goes down, it will be even more catastrophic for the global financial system than the collapse of Lehman Brothers was in 2008.  Germany is the glue that is holding the EU together, and so if the bank that is right at the heart of Germany’s financial system collapses, the dominoes will likely start falling very rapidly.

There has been a tremendous amount of speculation about Deutsche Bank over the past several days, and so let’s start with what we know.

We know that Deutsche Bank has been losing money at a pace that is absolutely staggering

Deutsche Bank reported a net loss that missed market expectations on Wednesday as a major restructuring plan continues to weigh on the German lender.

It reported a net loss of 832 million euros ($924 million) for the third quarter of 2019. Analysts were expecting a loss of 778 million euros, according to data from Refinitiv. It had reported a net profit of 229 million euros in the third quarter of 2018, but a loss of 3.15 billion euros in the second quarter of this year.

If you add the losses for the second and third quarter of 2019 together, you get a grand total of nearly 4 billion euros.

How in the world is it possible to lose that much money in just 6 months?

If all they had their employees doing was flushing dollar bills down the toilet for 6 months, it still shouldn’t be possible to lose that kind of money.

When investors learned of Deutsche Bank’s third quarter results last week, shares of the bank went down about 8 percent in a single day.

Overall, the stock price has lost over a quarter of its value over the past year.

Unless you enjoy financial pain, I have no idea why anyone would want to be holding Deutsche Bank stock at this point.  As I have previously warned, it is eventually going to zero, and the only question remaining is how quickly it will get there.

We also know that Deutsche Bank has been laying off thousands of workers all over the world

On July 8, 2019, thousands of Deutsche Bank employees across the globe arrived at their offices, unaware that they would be leaving again, jobless, just a few hours later. In Tokyo, entire teams of equity traders were dismissed on the spot, while some London staff were reportedly told they had until 11am to leave the bank’s Great Winchester Street offices before their access cards stopped working.

The job cuts, which totalled 18,000, or around 20 percent of Deutsche Bank’s workforce, were the flagship element of a restructuring plan designed to save the ailing German lender.

The day before those layoffs happened, most of those employees would have probably told you that Deutsche Bank is in good shape and has a very bright future ahead.

Just like we witnessed with Lehman Brothers, there is always an effort to maintain the charade until the very last minute.

But the truth is that anyone with half a brain can see that Deutsche Bank is dying.  There have been so many bad decisions, so many aggressive bets have gone bad, and there has been one scandal after another

In April 2015, the bank paid a combined $2.5bn in fines to US and UK regulators for its role in the LIBOR-fixing scandal. Just six months later, it was forced to pay an additional $258m to regulators in New York after it was caught trading with Myanmar, Libya, Sudan, Iran and Syria, all of which were subject to US sanctions at the time. These two fines, combined with challenging market conditions, led the bank to post a €6.7bn ($7.39bn) net loss for 2015. Two years later, it paid a further $425m to the New York regulator to settle claims that it had laundered $10bn in Russian funds.

At this point, it is just a zombie bank that is stumbling along until someone finally puts it out of its misery.

Money is so tight at Deutsche Bank that they have even cancelled the Christmas reception for retired employees

Times change. Once upon a time (2001, in fact), Deutsche Bank was able to book stars like Robbie Williams for its staff Christmas party, with a Spice Girl turning up too just because it was such a great party. Now, according to the FT, Christian Sewing has even cancelled the daytime coffee-and-cake Christmas reception for retired employees.

Of course saving a few bucks on coffee and cake is not going to make a difference for a bank with tens of trillions of dollars of exposure to derivatives.

Deutsche Bank is the largest domino in Europe’s very shaky financial system.  When it fully collapses, it will set off a chain reaction that nobody is going to be able to stop.  David Wilkerson once warned that the financial collapse of Europe would begin in Germany, and Jim Rogers has warned that the implosion of Deutsche Bank would cause the entire EU to “disintegrate”

Then the EU would disintegrate, because Germany would no longer be able to support it, would not want to support it. A lot of other people would start bailing out; many banks in Europe have problems. And if Deutsche Bank has to fail – that is the end of it. In 1931, when one of the largest banks in Europe failed, it led to the Great Depression and eventually the WWII. Be worried!

Sadly, most Americans can’t even spell “Deutsche Bank”, and they certainly don’t know that it is the most important bank in all of Europe.

But those that understand the times we are living in are watching Deutsche Bank very carefully, because if it implodes global financial chaos will certainly follow.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

What In The World Is The Federal Reserve Thinking???

You don’t use up all of your ammunition before the battle even begins.  The U.S. economy has not even officially entered recession territory yet, although many experts are definitely anticipating one in 2020.  When that recession arrives, the Federal Reserve is going to want as much ammunition to fight it as possible.  So I was horrified to learn that the Federal Reserve announced on Wednesday that interest rates are being slashed once again.  We have now had three interest rate cuts in 2019 as the Federal Reserve desperately attempts to revive the stalling U.S. economy.  But what are they going to do during the next recession when they have already pushed interest rates all the way to the floor and they can’t push them any lower?  In addition, in recent days the Federal Reserve has decided to absolutely flood the financial system with new money in a desperate attempt to stabilize the repo market.  In essence, the Federal Reserve has launched a massive new round of quantitative easing even before a major crisis has erupted on Wall Street.  I can understand trying to be proactive, but in reality quantitative easing is an extreme emergency measure that should only be used in the most desperate of situations.  If the Fed is creating this much new money now, what are they going to do once things really get bad?  Are we destined to become the next Venezuela?

For a long time, the Federal Reserve has insisted that the U.S. economy is in good shape.  If that is true, there is no way in the world that the Fed should be cutting interest rates.  But that is exactly what happened on Wednesday

In a vote widely anticipated by financial markets, the central bank’s Federal Open Market Committee lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%. The rate sets what banks charge each other for overnight lending but is also tied to most forms of revolving consumer debt.

It was the third cut this year as part of what Fed Chairman Jerome Powell has characterized as a “midcycle adjustment” in a maturing economic expansion.

With rates now so close to zero, there isn’t going to be much that the Fed can do in that regard once the next recession strikes.

According to Fed Chair Jerome Powell, this latest rate cut was done for “insurance” purposes

Powell said lowering the rate again was ‘insurance’, or protection needed because ‘weakness in global growth and trade developments have weighed on the economy and posed ongoing risks’.

If the U.S. economy doesn’t plunge into a deep recession next year, Powell and the other bureaucrats at the Fed will probably be applauded for these moves.

But if we do experience a significant economic downturn, they will be caught with their pants down.

Yes, the U.S. economy is definitely slowing down, but this week we learned that it still grew at an annual rate of 1.9 percent last quarter.

1.9 percent is not good at all, and if honest numbers were being used it would show that our economy is actually contracting.  But at least things are relatively stable for the moment, and as long as things are relatively stable the Federal Reserve should not be resorting to emergency measures.

Of course Wall Street was absolutely thrilled that the Fed cut rates again, and news of the rate cut pushed the S&P 500 to yet another all-time record high

Stocks advanced Wednesday after the Federal Reserve cut interest rates for the third time this year, propelling the Standard & Poor’s 500 to a fresh record.

The S&P 500 index added 9.88 points, or 0.3%, to close at 3046.77. The Dow Jones industrial average climbed 115.27 points, or 0.4%, to end at 27,186.69. The Nasdaq added 27.12 points, or 0.3%, at 8,303.98.

And without a doubt, this rate cut is good for consumers.  Rates on mortgages, auto loans and credit cards will go down, and that will save average Americans a lot of money

These Fed interest rate cuts are starting to add up, lowering costs for many Americans who use credit cards or take out loans while squeezing savers.

The Federal Reserve lowered its benchmark interest rate Wednesday by a quarter percentage point for the third time in the past three months. The move is likely to further trim borrowing costs on credit cards, home equity lines, adjustable-rate mortgages and auto loans.

But this is yet another example of the short-term thinking that is plaguing our society.

When the next recession arrives, the Fed will be able to cut rates a handful of times, and then that will be the end of it.

The Fed should have also held off on buying more bonds until we really needed it as well.  Even though a new financial crisis has not even started yet, the Fed has been creating money like crazy and their balance sheet has ballooned “by about $100 billion over the past month”

The Fed has been buying bonds again, but officials insist it is an effort to stabilize the funds rate within the target range rather than a resurrection of QE. Still, the central bank balance sheet has expanded by about $100 billion over the past month and is back above the $4 trillion mark, $3.6 trillion of which is in Treasurys and mortage-backed securities.

So if the Fed is being this crazy now, what are they going to do when a real financial crisis erupts?

Perhaps they should just get it over with and create trillions of dollars right now and turn us into the Weimar Republic already.

Because that is where all of this craziness is eventually going to take us.  Our dollar is eventually going to be absolutely worthless and we will become the next Venezuela.

I have always been highly critical of the Federal Reserve, but at least in other eras those running the Fed were at least mildly competent.

But now it appears that incompetence is running wild over at the Federal Reserve, and we will all pay a great price for their mistakes in the not too distant future.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep.  My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters.  (#CommissionsEarned)  By purchasing those books you help to support my work.  I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I can only allow this to happen if this “About the Author” section is included with each article.  In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished.  This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

It Is Time To Go: Over Half Of All California Voters “Have Considered Leaving The State”

Why in the world does anyone still want to live in California?  Great weather and good paying jobs are the two biggest positives that residents often point out, but the high cost of living and the absolutely ridiculous housing prices often eat up all of the extra money that Californians think that they are making.  In fact, it was recently reported that it now takes approximately $350,000 a year to live a middle class lifestyle in the city of San Francisco.  If you have a ton of money, it can partially insulate you from the problems that are increasingly ravaging the state, but unless you never go out in public nothing is going to insulate you completely.  Cities all over the state are degenerating into drug-infested, crime-ridden hellholes that are literally being overrun by millions of rats.  California has some of the worst traffic in the entire world, unchecked illegal immigration is causing a whole host of social problems, and gang activity has become a massive problem.  On top of everything else, California is being constantly hit by wildfires, mudslides, earthquakes and other natural disasters.  In fact, scientists tell us that it is just a matter of time before “the Big One” hits, and that is probably one of the best reasons to leave California while you still can and never look back.

Yes, there are some California residents that continue to insist that it is a great place to live.

But if California is so wonderful, why have more than half of all California voters “considered leaving the state”?  The following comes from the Los Angeles Times

Just over half of California’s registered voters have considered leaving the state, with soaring housing costs cited as the most common reason for wanting to move, according to a new poll.

Young voters were especially likely to cite unaffordable housing as a reason for leaving, according to the latest latest UC Berkeley Institute of Governmental Studies poll conducted for the Los Angeles Times. But a different group, conservatives, also frequently suggested they wanted to leave — and for a very different reason: They feel alienated from the state’s political culture.

With the way the state is being run, conservatives have been moving out of California in large numbers for years.  In fact, I have a number of really good friends that left the state for political reasons and will never return.

On the other hand, California’s reputation for handing out free goodies has been a magnet for another class of people.  Today, almost half of all homeless people in the entire nation live in the state of California, and this has become such a huge crisis that it literally makes headlines all over the globe.

For example, the following comes from an article in a British news source

Cali Carlisle admits she is a heroin addict — ‘but in a healthy way,’ she insists, even if the visual evidence belies that claim.

Her nose is the brightest shade of red imaginable. She constantly picks at scabs all over her body. Her home is a makeshift bed beneath Interstate 80 in Sacramento.

And Monday was her 26th birthday. Not that you would ever guess. Anyone looking at her would think she is at least 15 years older.

This is the cold, hard reality of the glorious drug lifestyle that so many go to California to experience.

Every year, thousands upon thousands of young people that once had bright futures ahead of them end up on the streets, in prison or dead due to this raging epidemic.

And one of the places where it is the worst is in the capital of the state itself.  Not too long ago, a salon owner in Sacramento made headlines all over the nation when her rant about homelessness on social media went viral

“I just want to tell you what happens when I get to work,” stated Liz Novak, a local salon owner, to the media about what she’s had to deal with trying to conduct business in Sacramento.

“I have to clean up the poop and the pee off of my doorstep. I have to clean-up the syringes. I have to politely ask the people who I care for – I care for these people that are homeless – to move their tents out of the way of the door to my business.”

She ultimately had to move her salon completely because it became clear that things were not going to get better any time soon.

In the state of California today, virtually everything has been defiled.

At one time, California was teeming with natural beauty.  But today the entire state has become a trash dumpster, and that includes California’s once pristine beaches.  Just check out what Dr. Drew Pinsky recently told Laura Ingraham

“There is an organization out here called Heal the Bay which keeps tabs on safety of our beaches in Southern California, from Orange County to Ventura. Since the rains last Winter, [Heal the Bay] has been giving our beaches C’s to F’s, and F means completely overrun with fecal bacteria. What comes with that are other things like syringes, Hepatitis A and other infectious diseases.”

On top of everything else, seismic activity is a constant threat.

There have been more than 1,500 earthquakes in California and Nevada over the past 7 days, and these days that is considered to be a slow week.

Of course most of the earthquakes are very small, but scientists assure us that one of these days “the Big One” will hit the state.  When that day arrives, the geography of the state will be radically changed, and the death and destruction will be off the charts.

We live at a time when our planet is being greatly shaken, and many believe that what we have seen so far is just the beginning.

The coastline of the state of California lies directly along the infamous “Ring of Fire”, and scientists have been persistently warning us that the San Andreas fault is “locked and loaded” and could possibly “unzip all at once”.

It is such a shame what has happened to the state.  California should be one of the most beautiful, prosperous and enjoyable places to live in the entire world.  Unfortunately, Californians have been making exceedingly poor choices for decades, and the consequences of those decisions will be extremely bitter indeed.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time. Of course the most important thing that we can share with people is the gospel of Jesus Christ, and if you would like to learn more about how you can become a Christian I would encourage you to read this article.

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