Coronavirus Recession

NEW -> Contingent Buyer Assistance Program
Every cure has side-effects. One of the recent side effects from FED massive unconventional actions surfaced fairly quick is Mortgage Servicers and the Mortgage Financial Systems can collapse.

The others collateral damage occur over-time can create inflation and with sustain high unemployment will result in stagflation.

Congress is on the verge of rolling out another helicopter money drop (4th round) to combat the high and sustain unemployment that they have data?s to see that it will happen.

If this cycles keep looping that?s very bad.

Gold is still a hedge for inflation, but when you have rusher rushing for exit , nothing matters. Cash is what everyone feel safe and want to hold on to for the time being. We still don?t know if there maybe another extension for shelter in place. It?s the uncertainty is keeping people on edge.
 
CNN Travel: Nearly 80% of hotel rooms in the US are empty, according to new data

The hotel industry has taken a massive hit as people continue to abide by stay-at-home orders during the ongoing coronavirus pandemic.

Only 21.6% of hotel rooms in the United States were occupied between March 29 and April 4, according to new data from hospitality analytics company STR. That is a 68% decrease when compared to the same week last year.

Those numbers could continue to drop, according to STR. The percentage from last week is slightly down from the week before.

Oahu Island, Hawaii is one of the most impacted by the lack of hotel guests. Only 7% of hotel rooms are occupied, the lowest rate for any market in the country. That figure is down more than 90% from the same week last year.

Marriott, for example, has furloughed thousands of workers because of the high rate of cancellations. The Intercontinental Hotels Group, which owns the Holiday Inn and Crowne Plaza hotel brands, said that demand for rooms is the lowest it has ever seen.

The lack of occupancy impacts employees in the industry, too. An Oxford Economics study predicts that whopping 44% of hotel employees in every state will lose their jobs as a result of the pandemic.
https://www.cnn.com/2020/04/08/us/hotel-rooms-industry-coronavirus-trnd/index.html

 
Has the strip opened yet?  I think once vegas starts gambling again, we can start seeing some real gains.
But they closed in mid MAR and said they would open again in 2 weeks.  Well here we are and it's still closed...
 
The econmy and the markets are two different beast. You have the econmy in the gutters and market irrationally rally because of another 2.3 trillions just added. If things were even on the borderline of being OK, the FED would never have to go to that extents of keeping pumping MASSIVE amount of liquidities. Its just like taking drugs, at a sooner point, the effective will wear off and the large dosage not effective anymore since the med. is not curing the ills. In this case money not getting to people at the right time or at the wrong place.

 
Handful of GOP senators threaten to delay Senate coronavirus bill over unemployment payments

"Republicans right now are holding up COVID relief package because the unemployment insurance is TOO GENEROUS," Sen. Brian Schatz, D-Hawaii, tweeted.

A handful of Republican senators threatened Wednesday to delay the $2 trillion coronavirus spending bill over a proposed increase in unemployment insurance.

In a statement, Sens. Tim Scott, R-S.C., Lindsey Graham, R-S.C., and Ben Sasse, R-Neb., said the bill could provide a "strong incentive for employees to be laid off instead of going to work" because some people could theoretically make more by being unemployed.
https://www.nbcnews.com/politics/co...enate-coronavirus-bill-over-drafting-n1168766

Unbelievable. The true colors show at the time of crisis. Screw the little guy?
 
I'm glad I didn't get into the vacation rental business.  There have been so many gurus promoting this as the next gold rush in real estate because the returns look so good on paper.  20% cash-on-cash returns are pretty easy to achieve in the right location.  Yet if there's one area of RE that gets hit hard during a recession, it's vacation rentals... And this recession is going to be the MOTHER of all recessions to hit that industry.
 
More than half of renters say they lost jobs due to coronavirus: ?They could face housing situations that spiral out of control?

The recent $2 trillion CARES Act, a federal stimulus package, ?didn?t do enough to address increases in housing insecurity for the nearly 11 million low-income renter households paying more than half their income toward rent before the pandemic,? Cunningham added.

Eventually, the rent will be due and someone needs to pay it,? she wrote. ?Low-income renters, especially those who lose employment during the crisis, will have a hard time paying back rent, and they could face housing situations that spiral out of control.

The National Multifamily Housing Council tracked data from 13.4 million apartment units and found that 31% of renters had not paid their rent in the first week of April, up from 19% for the same period in the previous month, according to a report released this week.

?The COVID-19 outbreak has resulted in significant health and financial challenges for apartment residents and multifamily owners, operators and employees in communities across the country,? said Doug Bibby, the president of the National Multifamily Housing Council.

Almost half (46%) of renters say they have less than $500 in emergency funds, while 22% of homeowners say they don?t have enough saved to cover their mortgage payment for a month, according to a separate poll of 1,000 renters and homeowners from Clever, an online service connecting house hunters with real-estate agents.
https://www.marketwatch.com/story/t...ey-lost-their-jobs-due-to-covid-19-2020-04-09



 
Vacation rental is screwed. Forget about it, might as well mail the keys back to your lender. That will be the last thing after this that people think about going on vacation. People will clutch tight to their last dollars.

The soup/food line is propping up everywhere.

 
Compressed-Village said:
Vacation rental is screwed. Forget about it, might as well mail the keys back to your lender. That will be the last thing after this that people think about going on vacation. People will clutch tight to their last dollars.

The soup/food line is propping up everywhere.
Click to expand...

Me and CV are the only ones talking about the food line. Food line are not just for poor people.
 
eyephone said:
Compressed-Village said:
Vacation rental is screwed. Forget about it, might as well mail the keys back to your lender. That will be the last thing after this that people think about going on vacation. People will clutch tight to their last dollars.

The soup/food line is propping up everywhere.
Click to expand...

Me and CV are the only ones talking about the food line. Food line are not just for poor people.
Click to expand...

The public schools are effectively acting as food lines already.  Free food if you have kids, no questions asked.
 
Liar Loan said:
eyephone said:
Compressed-Village said:
Vacation rental is screwed. Forget about it, might as well mail the keys back to your lender. That will be the last thing after this that people think about going on vacation. People will clutch tight to their last dollars.

The soup/food line is propping up everywhere.
Click to expand...

Me and CV are the only ones talking about the food line. Food line are not just for poor people.
Click to expand...

The public schools are effectively acting as food lines already.  Free food if you have kids, no questions asked.
Click to expand...

Haha handing out kids meal is a food line.
Good one.
 
What did we expect would happen if we shut down a country where the majority of people live check to check.

Everyone talks about overwhelming the healthcare system as the rationale for this.

What about the overwhelming of society?

All this is going to be for not as everyone is going to learn we can?t wait this out for 12-18 months. So we steamrolled the economy for what?
 
qwerty said:
What did we expect would happen if we shut down a country where the majority of people live check to check.

Everyone talks about overwhelming the healthcare system as the rationale for this.

What about the overwhelming of society?

All this is going to be for not as everyone is going to learn we can?t wait this out for 12-18 months. So we steamrolled the economy for what?
Click to expand...

Good point.
How about this? Will you go to the movies in a month or so if they lift the ban?
Our society will change.
We should not bailout everybody.
 
eyephone said:
qwerty said:
What did we expect would happen if we shut down a country where the majority of people live check to check.

Everyone talks about overwhelming the healthcare system as the rationale for this.

What about the overwhelming of society?

All this is going to be for not as everyone is going to learn we can?t wait this out for 12-18 months. So we steamrolled the economy for what?
Click to expand...

Good point.
How about this? Will you go to the movies in a month or so if they lift the ban?
Our society will change.
We should not bailout everybody.
Click to expand...

I have two kids. I don?t go to the movies anymore :-(

They should not get bailed out. They started doing what they should have done a long time ago and stream new releases.
 
You must log in or register to reply here.
Back
Top