Coronavirus and Stock Markets - Thoughts?

[engineer]

Thanks for sharing.

The newsletter touched upon this which is - like many other things - are very worrying indeed:

Mortgage Defaults are Up 18-Fold.

People can’t even get through to their banks to tell them they are not going to pay. This is the next financial crisis. Fannie Mae and Freddie Mac are going to go broke….again.

@engineer

FT:

Fannie and Freddie could require bailout if lockdown lasts

Regulator says US mortgage guarantors have sufficient resources for about 12 weeks

Fannie Mae and Freddie Mac, the government-controlled companies that guarantee nearly half of US mortgages, could require their second bailout in just over a decade if the US economy remains in a lockdown for several months, their regulator has warned.

The two groups, which collectively underpin the $10tn US housing market, have sufficient resources to last through a lockdown of about 12 weeks, but would then need funds from Congress or the Federal Reserve, said Mark Calabria, director of the Federal Housing Finance Agency.