This Could Dwarf the Great Depression

If USA stays shut down for months with 80,000,000 people not working as they “shelter at home”, we could start a domino effect that leads to a financial mess bigger than the Great Depression.  Please note this article isn’t from the National Enquirer.  It’s from Bloomberg via Yahoo Finance.  Pretty mainstream news that Americans are reading.

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(Bloomberg) -- Real estate billionaire Tom Barrack said the U.S. commercial-mortgage market is on the brink of collapse and predicted a “domino effect” of catastrophic economic consequences if banks and government don’t take prompt action to keep borrowers from defaulting.

Barrack, chairman and chief executive officer of Colony Capital Inc., warns in a white paper of a chain reaction of margin calls, mass foreclosures, evictions and, potentially, bank failures due to the coronavirus pandemic and consequent shutdown of much of the U.S. economy. The paper was posted late Sunday on online publishing platform Medium.

“Loan repayment demands are likely to escalate on a systemic level, triggering a domino effect of borrower defaults that will swiftly and severely impact the broad range of stakeholders in the entire real estate market, including property and home owners, landlords, developers, hotel operators and their respective tenants and employees,” he wrote.

Barrack said the impact could dwarf that of the Great Depression.

https://finance.yahoo.com/news/real-estate-billionaire-barrack-says-230309693.html