The Collapse Will Occur This Week

As of Saturday, 8/1/2020, Congress had not reached any agreement on a new economic stimulus bill. This has dire consequences which we will begin seeing Monday morning.

For one thing, the eviction moratorium for many ended on 7/31/2020. Many eviction notices have already been filed, ready for immediate dispersal. The only chance for millions of Americans at this point will be if Trump issues an executive order for a stay of evictions. Otherwise, it will require a massive flurry of mayors, state legislatures and governors issuing stays of evictions.

Even then, as I have pointed out before, as long as these stays are merely deferrals, rather than complete suspensions of mortgages, this is a snowball which will gain momentum and become an ever larger crushing financial disaster for the entire country. Congress has the power to order banks to cease assessing and collecting mortgages, both residential and commercial residential mortgages but have not done so. Many equity owners, individual and corporate, will be unable to continue functioning and will declare bankruptcy in the near future, as early as this month. Enacting a suspension of mortgages would not cost the banks anything. It would simply mean they were not collecting more money for a period of time. Their stockholders may not like it but that would be the only ones who suffered any decline in revenue.

Even if Congress came to a new agreement to continue unemployment supplements today (while they are on a 3 day weekend) or Monday morning, that…