America’s Pride In The Economy Is About To Be Greatly Shaken As Tens Of Millions Face Eviction In 2021

Unless there is emergency intervention, tens of millions of Americans could be facing eviction once the holiday season is over.  We kicked the can down the road throughout 2020, but all of the rent that was originally owed to landlords all over the country is still due, and they are very eager to collect.  Countless landlords are on the verge of financial ruin because of the rent moratoriums which were put in place, and kicking the can down the road even more would be absolutely disastrous for them.  Of course it would also be absolutely disastrous if the moratoriums are not extended, because in some states more than half of all households are behind on their rent or mortgage payments, and most of them have no way to pay.

One way or the other, we are about to hit a breaking point.  The Aspen Institute is telling us that a whopping 40 million people “could face eviction over the next several months”

According to research by the Aspen Institute, nearly 40 million Americans could face eviction over the next several months. The only thing holding back the flood right now is the CDC’s eviction moratorium order and a patchwork of state and local protections for renters.

But these moratoriums are only kicking the can down the road. Chief economist for Moody’s Analytics Mark Zandi told the Washington Post that tenants could owe nearly $70 billion in back rent by year’s end. And for landlords left holding the bag, there’s been little relief, as they’ve been forced to take on the role of government — subsidizing housing for millions even as their own taxes, mortgage payments, and other expenses are due.

That is about 12 percent of the entire country.

If they get evicted, where are they going to go?

Into the streets?

Vox recently interviewed a 48-year-old Texas resident named “Kimberly”, and she says that is exactly where she is headed if she gets evicted…

But after Covid-19 hit, she lost hours at her job as a crew trainer at Raising Cane’s Chicken Fingers and found herself on the brink of financial collapse. She fell behind on her rent and when she tried to work with her landlord to set up a repayment plan, she told Vox that she was served an eviction notice. Now, the only thing keeping her in her home is the Centers for Disease Control and Prevention’s (CDC) national eviction moratorium, which prohibits landlords from evicting qualifying tenants for failing to make rent.

If she’s evicted, Kimberly says she has nowhere to go — and will be homeless for the second time in five years.

And there are countless others out there that are just like her.

According to Zero Hedge, “at least half of households in Arkansas, Florida and Nevada are not current on rent and mortgage payments”.

We have never seen anything like this in modern American history, and the new lockdowns that are being instituted across the nation will just make things even worse.

Of course there are many Americans that will be able to move in with family, and this has already been happening in very large numbers.  In particular, young people are moving back in with their parents on a massive scale.  According to the Pew Research Center, “a majority of young adults in the U.S. live with their parents for the first time since the Great Depression”.

The phrase “since the Great Depression” has been popping up a lot lately, hasn’t it?

That is because this is literally the first economic depression that the U.S. has experienced since that time.

Everywhere we look, we can see the sort of economic devastation that I have been warning was coming for a very long time.

In New Jersey, approximately one-third of all small businesses “have closed down in 2020”

A third of small businesses in New Jersey have closed down in 2020, according to a report from The Star-Ledger newspaper.

“It’s really bad… And without federal dollars coming into New Jersey, the Main Street stores and other establishments are not gonna make it through the winter.” said Eileen Kean, the state director of the National Federation of Independent Business.

New Jersey’s number is higher than the national average, but not by very much.

Of course Atlantic City has been hit particularly hard because it is so dependent on tourism.  At this point, it is being called “the city without a pulse”

The boardwalk is empty, the beaches are deserted, and the casinos, though partially reopen, are limping into their fifth month of severely curtailed operations after four months of shutdowns. The coronavirus pandemic skewered the economic engine of this beachside town, taking the city’s vibrancy and its residents’ livelihoods out with it.

Sadly, things are inevitably going to get worse in the months ahead thanks to the new lockdowns.  The number of Americans filing new claims for unemployment has risen significantly for the past two weeks, and more bad weeks are almost certainly ahead.

Needless to say, rising unemployment will mean more Americans being pushed out of their homes and more Americans being pushed into poverty.  According to a survey that was released in October, the number of Americans living in poverty has risen by 8 million since May…

The number of Americans living in poverty grew by 8 million since May, according to a Columbia University study, which found an increase in poverty rates after early coronavirus relief ended without more to follow.

Although the federal Cares Act, which gave Americans a one-time stimulus check of $1,200 and unemployed workers an extra $600 each week, was successful at offsetting growing poverty rates in the spring, the effects were short-lived, researchers found in the study published Thursday.

Of course that number is more than a month old, and so the true number of Americans that have been forced into poverty is substantially higher by now.

This is what an economic collapse looks like, and even worse days are ahead of us.

The good news is that those that were warned in advance that an economic collapse was coming had time to make preparations for this sort of a scenario.

But most Americans never wanted to listen to the warnings, and so now they find themselves in the middle of a storm without an umbrella.

Unfortunately, what we have experienced so far is just the leading edge of the storm, and most people still do not realize that.

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

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.  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)  By purchasing the books 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.  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 FacebookTwitter and Parler, 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.

Nearly 51 Million Households In The United States ‘Can’t Afford Basics Like Rent And Food’

If the U.S. economy is performing well, then why can’t 51 million households in the United States “afford basics like rent and food”.  A stunning new report that was just put out by the United Way ALICE Project shows that the gap between the wealthy and the poor in this country is perhaps the biggest that it has been in any of our lifetimes.  In some of the wealthiest areas of the nation, homes are now selling for up to 100 million dollars, but meanwhile tens of millions of families are barely scraping by from month to month.  Many believe that this growing “inequality gap” is setting the stage for major societal problems.

In general, the U.S. economy seems to be performing better than expected so far in 2018, but the ranks of the poor and the working poor just continue to grow.  The following comes from CNN

Nearly 51 million households don’t earn enough to afford a monthly budget that includes housing, food, child care, health care, transportation and a cell phone, according to a study released Thursday by the United Way ALICE Project. That’s 43% of households in the United States.

The figure includes the 16.1 million households living in poverty, as well as the 34.7 million families that the United Way has dubbed ALICE — Asset Limited, Income Constrained, Employed. This group makes less than what’s needed “to survive in the modern economy.”

If 43 percent of all Americans cannot even afford “the basics”, what does that say about the true state of the U.S. economy?

Of course the biggest reason why so many American families are struggling is the lack of good jobs.

In America today, 66 percent of all jobs pay less than 20 dollars an hour.

66 percent.

Just let that sink in for a minute.

You cannot support a middle class family on 20 dollars an hour.  As a result, many Americans are working more than one job, and in many households both the mother and the father are working more than one job.

Housing costs account for the biggest item in most family budgets, and the fact that housing costs have just continued to soar is putting a huge amount of financial stress on hard working families.  Just today we learned that there is a tremendous rush to buy homes as mortgage rates rise rapidly

Today, according to the latest Freddie Mac mortgage rates report, after plateauing in recent weeks, mortgage rates reversed course and reached a new high last seen eight years ago as the 30-year fixed mortgage rate edged up to 4.61% matching the highest level since May 19, 2011.

But while the highest mortgage rates in 8 years are predictably crushing mortgage refinance activity, they appears to be having the opposite effect on home purchases, where there is a sheer scramble to buy, and sell, houses. As Bloomberg notes, citing brokerage Redfin, the average home across the US that sold last month went into contract after a median of 36 only days on the market – a record speed in data going back to 2010.

If you will remember, we witnessed a very similar pattern just before the subprime mortgage meltdown in 2008.

History is repeating itself, and we never seem to learn from our past mistakes.

Housing prices in some cities are absolutely obscene right now, and many working families find themselves completely priced out of the market.  That has some people asking one very simple question

Many San Francisco renters I met while reporting an article on affordable housing lotteries had responded to the region’s housing crisis by putting up with great discomfort: They crammed in with family; they split apartments with strangers. Some even lived out of their cars.

Why, lots of readers wanted to know, didn’t they simply move away instead?

Yes, some people are moving, and this is something that I plan to do an article about very soon.

But for most hard working families, moving across the country simply is not an option.  Moving out of state is very expensive, it can be very difficult to find a similar job in an entirely new area, and many families are very dependent on the social networks where they currently live…

People who struggle financially often have valuable social networks — family to help with child care, acquaintances who know of jobs. The prospect of dropping into, say, Oklahoma or Georgia would mean doing without the good income and the social support. Those intangible connections that keep people in places with bad economies also keep people in booming regions where the rent is too high.

In the end, moving is just not an option for a lot of people.

We need to structure our economic system so that it works for all Americans – not just a few.  Unfortunately, it is probably going to take another major crisis before people are ready for such a restructuring.

And such a crisis may not be that far away.  In fact, even Pope Francis is now warning about the dangers of derivatives

In a sweeping critique of global finance released by the Vatican on Thursday, the Holy See singled out derivatives including credit-default swaps for particular scorn. “A ticking time bomb,” the Vatican called them. The unusual rebuke — derivatives rarely reach the level of religious doctrine — is in keeping with Francis’s skeptical view of unbridled global capitalism.

“The market of CDS, in the wake of the economic crisis of 2007, was imposing enough to represent almost the equivalent of the GDP of the entire world. The spread of such a kind of contract without proper limits has encouraged the growth of a finance of chance, and of gambling on the failure of others, which is unacceptable from the ethical point of view,” the Vatican said in the document.

I have written about derivatives extensively in the past, and Pope Francis is 100 percent correct when he says that they are a ticking time bomb which could absolutely devastate the global financial system at any moment.

We don’t know exactly when it will happen, but we do know that such a crisis is coming at some point.

Sadly, most of the population is completely asleep, and they will be completely blindsided by the coming crisis when it does finally arrive.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.