It really is a global shut down. https://t.co/iYyMosuyND
— Sven Henrich (@NorthmanTrader) April 3, 2020
Welcome to the depression https://t.co/4PHYLNpiuw
— Alastair Williamson (@StockBoardAsset) April 3, 2020
Portfolio leverage as a multiple of assets in risk parity funds, estimated – @SoberLook @WSJ pic.twitter.com/VRtNxiMEFv
— Rob Hager (@Rob_Hager) April 3, 2020
Bloomberg: Mortgage Defaults Could Pile Up at Pace That Dwarfs 2008
As many as 30% of Americans with home loans – about 15 million households –- could stop paying if the U.S. economy remains closed through the summer or beyond, according to an estimate by Mark Zandi, chief economist for Moody’s Analytics.
It’s a vicious cycle here, landlords who depend on renters who can’t pay their rent now will result in landlords not being able to cover their mortgage–and anyone with a service job that is a homeowner that’s furloughed/laid off will also likely face default as well.
While I’m not sure if this will “dwarf ’08”, there most certainly has to be major action taken to prevent even something that’s half as bad as ’08.
Home lenders are bracing for as many as 15 million mortgage defaults in the U.S. https://t.co/XKbrzlNPeu
— Bloomberg Asia (@BloombergAsia) April 2, 2020
Markets chart of the day: from a read on whether credit ratings agencies are poised for a rerun of 2008 financial crisis when ratings that were set too high came tumbling down, magnifying a sense of alarm https://t.co/tqvOv1FNUi pic.twitter.com/ihsVgyfMOz
— Tony Tassell (@TonyTassell) April 3, 2020
BMW CEO SAYS CIRCUMSTANCES AS SERIOUS AS CORONAVIRUS PANDEMIC CAN THREATEN EXISTENCE OF EVEN LARGE COMPANY
— *Walter Bloomberg (@DeItaOne) April 3, 2020
New York’s unemployment insurance fund is "basically insolvent” and only has enough money to cover checks for about 10 weeks https://t.co/4UKEnn6baq
— Bloomberg Asia (@BloombergAsia) April 2, 2020
But in terms of swiftness, it is record-shattering, even surpassing the Great Crash of 1929. pic.twitter.com/3EUN1E9exH
— Robin Wigglesworth (@RobinWigg) April 2, 2020
— M/I_Investments (@MI_Investments) April 2, 2020
China is tiptoeing, not roaring, back. Hopes for a speedy recovery in the West once the epidemic peaks may also be misplaced. https://t.co/F79WyBgpna via @WSJ
— Nathaniel Taplin (@nate_taplin) April 2, 2020
Wow! #Spain's Services #PMI fell to 23.0 in March. #unprecedented pic.twitter.com/DV76C6r4kk
— jeroen blokland (@jsblokland) April 3, 2020
Some of the companies that have announced furloughs just this week alone:
Disney
Neiman Marcus
Aramark
Ross Stores
JCPenney
Macy's
Gap
Sotheby's
SeaWorld
GE Aviation
Air Canada
British Airways
SoulCycle
Goodwill
Simon Property Group— Hipster (@Hipster_Trader) April 3, 2020
No words for that. pic.twitter.com/gjOL4ejZHi
— Frederik Ducrozet (@fwred) April 3, 2020
March’s huge job loss numbers rival the worst months of the Great Recession, and these numbers do not include millions who filed unemployment claims toward the end of March. This is just the tip of the iceberg of what's to come. #jobsday #jobsreport https://t.co/kmJXMmliZ8 pic.twitter.com/h4Vvmqh8oK
— Economic Policy Institute (@EconomicPolicy) April 3, 2020