Will coronavirus-induced foreclosures hit Great Recession levels?

It was a mere 12 years ago that the freefall of the housing market nearly took down the entire U.S. economy.

The housing market crash of 2008 still strongly resonates in the nightmares of those who follow the economy –– even more so for the homeowners of the estimated 10 million homes that foreclosed between 2006 and 2016. 

Logan Mohtashami,Columnist

Today, a healthcare crisis is the storm of economic destruction rampaging through America. It is not surprising that the effect of COVID-19 and its aftermath on the U.S. housing market is closely watched. As bad as things are, it can certainly get […] Read more

The Elizabeth Warren of This Recession Is…An Elizabeth Warren Staffer – Mother Jones

Elizabeth Warren asks a question of Treasury Secretary Timothy Geithner during a hearing on the Troubled Asset Relief Program on April 21, 2009 in Washington.Susan Walsh/AP

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Before she was a senator or a presidential candidate, Elizabeth Warren’s first foray into politics began when former Senate Majority Leader Harry Reid tapped Warren to serve on a congressional panel charged with overseeing a $700 billion bank bailout during the 2008 financial crisis. It was in that role that Warren, a Harvard law professor and personal bankruptcy expert, became a […] Read more

Opportunity knocks when a recession calls

Paul Apostolakis
Published 10:08 p.m. ET Nov. 18, 2019

A recession may offer renewed opportunity to invest in our futures, says Apostolakis. (Photo: David Zalubowski, AP)

A long-held financial philosophy has been that real estate is a solid and relatively safe investment. For decades people operated under that belief, until the Great Recession began in 2008 and so many of us were badly burned.

Millennials and baby boomers may feel like the Great Recession was just yesterday, which can make it […] Read more

Why a recession won’t help millennials buy a house

The 2008 financial crisis brought the global economy to its knees and sent American home prices into freefall. For anyone who managed to hang on to their job, savings, and credit score, the aftermath of the crisis was a prime opportunity to buy a house at a bargain price.

The Great Recession is the only economic downturn millennials have lived through as adults, so, naturally, they might think that the next recession—which more and more economists believe will hit by 2021—will present a chance for many millennials to finally join the ranks of homeownership.

It doesn’t bring me joy […] Read more

Despite recession fears, moving all your money from stocks to bonds is a bad idea if retirement is a long ways off

The Dow Jones industrial average sank 800 points Wednesday after the bond market flashed a warning sign about a possible recession for the first time since 2007. You may be tempted to switch your investments from stocks to bonds. While bonds may be less risky than stocks, they are not risk-free. (Richard Drew/AP)

As I’ve watched my retirement portfolio value swing wildly up and down, I keep hearing in my head the iconic catchphrase from the campy TV show “Lost in Space.”

“Danger, Will Robinson, danger,” the robot says during one episode of the […] Read more

10 years post the Great Recession, Equifax suggests communication providers review alternative data for emerging qualified customers

A recent study conducted by Equifax reveals that 42 million U.S. consumers in 2018 had damaged credit scores (i.e near-prime or sub-prime) and also had a “best” financial capacity profile (i.e. less than 30% DTI ratio). That could mean they have the disposable income available to afford a smart phone upgrade or wireless plan which represents 13.6 million more new consumers (than in 2008) that carriers may need to reconsider as qualified prospects.

Prior to the Great Recession, communications service providers (CSPs) relied solely on credit scores to make application decisions. Ten years later, this model has not changed. However, […] Read more

Regina’s residential construction industry in ‘deep recession’

Residential construction underway on Wild Rose Drive.

BRANDON HARDER / Regina Leader-Post

Regina’s residential construction industry is experiencing a heavy downturn, with this year’s housing starts on track to be the lowest in 11 years.

A new report from the Regina and Region Home Builders’ Association has put most of the blame on mortgage stress testing rules, which it said is raising the barrier to home ownership. The association estimates home ownership in the city has now sunk to 66 per cent, the lowest since 1996.

There were 111 residential building permits issued in the Regina region in the first quarter of 2019, […] Read more

LVO talks per capita recession on Radio 2GB

Earlier this morning I was interviewed by Radio 2GB’s Michael McLaren on Australia’s per capita recession.

Enjoy!

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Comments

Always good to see the MB love being spread across this wide brown land. 🙂

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Don’t worry, the politicians will all give themselves about 6 x CPI wage increases.

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Now we just need to ensure the everyday Australian knows what ‘per capita’ means, and we’ll have every Bob and Shirley quoting ‘GDP per capita”.

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– And how much bribes will the “Early Budget” contain ? And for whom ?

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– Immigration […] Read more

Credit Scores Hit Record High as Recession Wounds Heal

Credit scores for U.S. consumers reached a record high this spring while the share of Americans deemed to be some of the riskiest borrowers hit a record low — a potential boon for lending and economic activity.

Consumers’ improving fortunes reflect falling unemployment and continued, if lackluster, economic growth. An added benefit: The passage of time since the recession and housing meltdown are helping household balance sheets.

In ever-growing numbers, the worst personal financial setbacks, namely foreclosures and bankruptcies, are falling off Americans’ credit reports. More than six million U.S. adults will have personal bankruptcies disappear over the next five […] Read more