Has anyone even stopped to think about the financial impact on the US and its Banking Mortgage Industries, in addition the Insurance Industries? Well let’s talk about it, it could be the thing that financially causes the whole house of cards to come tumbling down.
First, let’s talk about Harvey, whoa, quoting from an article from Zero Hedge, “Black Knight Financial Services estimated 300,000 borrowers in the vicinity of Houston could become delinquent on their loans and 160,000 could become seriously delinquent.” That’s just for Harvey.
Let’s take a look at Irma, Florida. Again, quoting the Zero Hedge article, “Florida FEMA – designated disaster areas related to Hurricane Irma include a whopping 3.1 Million mortgaged properties.” No designation regarding any commercial properties for either Harvey or Irma.
Now we have Puerta RICO which was what appears to be an almost total loss on all residential and commercial properties to a majority of the properties. So bad in fact, President Trump vowed to nullify Puerto Rico’s debt. Hmmmnn.
On the radar at this exact moment are the fires in Anneheim and Santa Rosa, CA. Acres after acres, miles after miles of residential and commercial properties completely burned to the ground, total losses. My heart goes out to all these people who have lost anything and everything in any one of these disasters. Seriously the way it’s looking we’ll probably have a couple more before the end of the year, still to early to say.
The “Big “Question”, when do the insurance companies fail because there is just not enough revenue to cover the totality of all the claims. In addition to the fact that the biggest banks in the world will be facing the largest delinquencies on mortgages in the history of the banking industry. What happens???? Can somebody smarter than myself open their mind and think this through and give me a rational explanation as to how we/they will weather or recover from this.
COULD THIS BE THE BRICK THAT BREAKS THE BACKS OF THE BANKING AND INSURANCE INDUSTRIES????????
The above information doesn’t even touch on the credit card debt that will go delinquent as people become dispossessed, loss of homes, loss of jobs, loss of revenue.
Hold on everyone, I think it’s going to be a white knuckle ride.
Check this out:
Early estimates show that $3.1 trillion are at some level of risk from wildfires in California.
Harvey losses as high as $190 Billion
Irma up to $100 Billion
To appreciate how staggering these figures are, consider that they could be enough to make the $18.57 trillion US economy lose a step, knocking between 0.6 percent and 0.8 percent off of US GDP growth this quarter, according to projections from investment banks.
Americans now have the highest level of credit card debt in American history (even higher the before the crash of 2008/2009):
“American consumers just hit a scary milestone.
They now collectively have the most outstanding revolving debt — often summarized as credit card debt — in U.S. history, according to a report Monday released by the Federal Reserve. Americans had $1.021 trillion in outstanding revolving credit in June 2017. This beats the previous record in April 2008, when consumers had a collective $1.02 trillion in outstanding credit revolving credit.”
Puerto Rico’s roadways alone are a disaster, and it will cost at least $240 million to fix them!
This Economic Bubble Is Going to Wreak Havoc When It Bursts
It’ll have the force of all previous catastrophes combined.
By Jim Rogers, Robert Craig Baum Jul 10th, 2017 1:51 PM ET
An imminent economic crisis the likes of which this generation has never experienced is coming. However, the conditions under which the next bubble will burst will surprise even the most astute observers of economy, culture, and politics. The higher education bubble (one-sixth of the U.S. economy) will likely burst with the force of all previous catastrophes combined—a shock wave so sudden, so large, that it gathers the full force of the savings and loan, insurance, energy, tech, and mortgage crashes, creating a blockbuster-level perfect storm.
This article is from September 7th. If FEMA was running out of cash then. Where are they now after Puerto Rico and now Santa Rosa?
Another interesting tid bit.
In short, JPMorgan’s Board has decided it is time to seriously consider a TEOTWAWKI scenario.
As Son notes, in such an event, any member of the board or the firm’s operating committee can call a meeting using “any available means of communication.” And, just in case everyone else on the Board happens to die, one person will be sufficient to constitute a quorum. Vacancies can be filled by a majority vote of available directors. And if none are around, then designated officers can stand in. No officer, director or employee can be held liable in such a situation, except for “willful misconduct.”