Why is not one talking about the meltdown of our economy in 2020? It seemed to take a good year for the mainstream media to pick up on what was really happening during the 2008 foreclosure crisis. Maybe the lack of coverage is business as usual.
Max comments on how the stock market doesn’t make any sense to him right now. The only explanation he can think of is that the federal reserve bank of New York has put trillions of dollars into the system since September 17th of 2019.
Back in January of this year (before COVID-19), one of Max’s top ten predictions for 2020 was a major recession and he goes into detail about why he felt he saw this coming.
I was expecting a very, very bad year. I was not expecting a pandemic. Max thinks it may take this economy 15 or 20 years to get back if we can get out of this. This is a major hit. This makes 2008 look like a minor problem.
Max and Martin discuss the Repo Market and why it was a leading indicator of the pending recession. They also discuss collateralized loan obligations and their impact on the current crisis.
Will this lead to the banks needing another bailout? Max believes that the FED has already given the banks another bailout. The kind of money that the FED has put into the system compared to the Cares Act, makes the Cares Act seem like pocket money.
So what can people do? What should a homeowner do?
Max’s suggestions: 1. Preserve as much money as you can in terms of cash. 2. Talk with an experienced bankruptcy lawyer.
The worst thing you can do is go see a foreclosure or bankruptcy attorney at the last minute. Your options will be greatly limited.
Can small businesses use Chapter 11? Yes, talk to somebody now and start planning. If you don’t need it, then terrific.
Throughout the crisis. We will never go anywhere. We’ll stay here. We will keep being here and we’ll keep letting you know the truth of what’s going on before the mainstream media picks up on it.
