Retail Apocalypse Getting Worse: $15 Trillion Market Lead To Economic Collapse !!

The retail apocalypse proportions are getting so extensive that its downfall has been putting the commercial real state sector in big trouble. Experts have been warning that the $15 trillion market is at risk of bleeding over into the broader financial system as the U.S. struggles to come out of a deep economic collapse. The number of retail store closings has hit records this year and it's on pace to surpass the staggering bankruptcy figures seen during the Great Recession.

As the empty retail space has been continuously growing, economists alert the commercial real state business is on the verge to spark the next economic crisis. Today, we are going to examine the most recent assessments that have been pointing out to a very chaotic future both in retail and the real state industry. So stay with us, please leave a thumbs up in this video, share it with friends, and subscribe to our channel to keep updated with the next unfoldings of the 21st-Century Depression.
In the first six months of 2020, retail store closings have reached record levels, registering overwhelming rates of bankruptcy and liquidation filings as the health crisis sped up the downward trend the industry has been facing for years now. According to a recent report on the downturn's severity, the shift to online shopping and the significant reduction in consumer spending has put American retail in a more dangerous place than the one witnessed in the wake of the 2007-09 recession, when 48 retailers filed for bankruptcy.
The professional-services firm BDO USA LLP indicated in a recent analysis that this year's collapse could overtake that of 2010. Back then, the sector had the opportunity to restructure itself and fight back the deterioration suffered during the economic meltdown. At the present time, with online shopping reshaping consumer tendencies and an aggravating economic state, retail stores may have found a dead-end.
Together, hotels and retail, which have been hit the hardest, account for 40 percent of the commercial mortgage-backed securities market. Although lockdowns were lifted months ago, 1 out of every 2 hotel rooms remains vacant. Urban hotels have some of the highest operating costs and have been handling the worst occupancy rates, marking less than 38 percent. On the other hand, retail has undoubtedly faced the sharpest decline. And the downfall is not only configured by small strip malls: the owner of the $1.9 billion Mall of America reached an agreement with its special servicer in August to prevent foreclosure.
Today, one-quarter of all CMBS hotel loans are in special servicing compared with 1.9 percent last year. Retail loans in special servicing are at 18.3 percent, a 5 percent increase from the end of 2019. Another aggravating factor is that there haven’t been enough commercial property transactions to measure how deep property values have actually fallen, leading buyers and sellers to have extremely differing views of what a property is worth.
The lack of clarity in this matter affects how loans are diced up and packaged into securities held by investors. A bank could provide a borrower short-term relief and revaluate the issue in a few months, while a borrower whose loan has been bundled into a security has to pass through a more elaborate process to gather various investors’ approvals to adjust payments. Special servicers have to shape future payments for the bondholders, which has become a difficult mission since it hasn't been possible to fully assess what a building is worth or whether it will bring any revenue soon.
The American Hotel and Lodging Association released a survey showing that "15 percent of borrowers whose loans had been packaged and sold to investors had received relief on their loans, compared with 80 percent of borrowers with bank-owned loans". At the end of the day, the source of funding doesn’t make much difference – ultimately, a bank will have to write down a property that doesn’t recover. And industry experts aren’t sure which properties will.
For now, what we know is that retailers are about to close 25,000 stores across the country. This means property owners will get even more distressed with the massive amount of rental insolvency. As we approach the holiday season, many retailers are counting on the revenue to pay their debts. But as Mr. Graised signaled, many of those won't hit their expected goals and will be unable to pay back the rental deferrals landlords agreed to issue. And that will create an debt immense bubble in the retail sector, possibly flagging the end of the industry as we know, The bubble will also comprise the commercial real state market, and the result of its burst may spark an unprecedented financial crisis, so there’s no rest in sight for the fragile American economy.

Epic Economist website: https://www.epiceconomist.com

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84 comments

  • DOOM SAYER

    SO when do the FOOD SHORTAGES & BARTER Begin … I can’t FIT anymore Canned food or Toliet Paper in My House …… … 🙂

  • Zach Freed

    Noticing clothes food and supplies are taking longer to be restocked on the shelves

  • MattPSU02

    I work for a retail goods distributor. We have been strong. I think the reason is “substitution”. Consumers can’t go blow thousands on vacations or movies or fancy dinners… so they use that money on buying stuff for their house. I just question how long that will continue.

    • Charles Davis

      I am an actual ascendant of Aboriginal Ancient Ancestors as AmeriOriginal-One and; AMERICA is not the United States!!! Go read a map >>> What do you think – believe or truly know…eh??? http://americas-vs-united-states.blogspot.com/

    • Indianne G

      @Charles Davis , split hairs much? America is easier to say than the United States of AMERICA. If people can interpret people’s mangled English (their, there, they’re, as well as “we was” or “they was”) then I think most people with a couple of more brain cells than a turnip know what country AMERICA is referring to. And before you go playing the “indigenous peoples” card, my family is Of Oklahoma Cherokee descent. So hush! (I also can’t fathom how you are an “ascendant”. Did you come before your ancestors? )

    • Celtic Revival / Adfywiad Celtaidd

      Until they get a pay cut

    • Celtic Revival / Adfywiad Celtaidd

      @Indianne G … hello my colonised native friend.
      Time for truth
      The USA was built on violence, greed and sin….. yet hides behind the flag and Jesus. Jesus would not be happy how natives were fucking crushed.

    • Deezelsmoke

      @Celtic Revival / Adfywiad Celtaidd read some world history bro, humans are a violent creature. We’ve never had a problem killing others if they are in our way.

  • Craigs List

    I drove around Minneapolis today and downtown Minneapolis looks horrible. Many places boarded up and 2% Foot Traffic during lunch hour. Suburban retail and restaurants are going out of business each week. I have been driving to downtown Minneapolis since March and have seen a steady decline and exceleration in the past 3 weeks.

    Driving around your local big city you will get a true wake up call to the real economy. We will be in a full blown collapse by Feb 2021 if not earlier.

    Stock up on as much food as you can store because it will be hard to come by and prices will be going up and up.

  • Victoria Francois

    Still think its about a virus ??? Fooled ya Didn’t they

    • Dennis Zwo

      @Rick Smàll global warming is the other hoax for depopulation and enslavement agenda

    • Truth Is The New Hate Speech

      @brooke mckay You’re not too bright! This hoax of a virus is gonna be blamed for the global economic collapse which was going to happen regardless whether this virus happened or not. They now have something to blame it on. Keep watching MSM!

    • brooke mckay

      @Truth Is The New Hate Speech hoax of a virus??? You cant fix dumb..why dont you hang out at your local hospital ..you should really stop doing crack.

    • Truth Is The New Hate Speech

      Only 6% of the 200,000+ that got infected died from covid! So who’s the fucking dumb one for believing their bullshit? It’s not me!

  • TheEndIsHere FinalWarning

    Really bad here in the UK entire malls have shut. One near me is open but 70% of the shops have closed. The second wave has arrived with a tier 2 lockdown only here 5 days and hundreds of thousands of jobs gone in just one weekend. Im wondering what it will be like in full collapse.

    • Bodybuilder Friends

      It seems to me this is a world wide plan to destroy the world economy.. population control etc… What are you guy’s thoughts?

      Here in the US is terrible.

    • Yeti Ayur

      @Bodybuilder Friends it is a plandemic. They created this wuflu hoax to destroy everything. Socially engineer the masses to mask up and take the mark of the beast. Population control is at the heart of it all. Depopulation agenda with bio weapons.

    • TheEndIsHere FinalWarning

      @Bodybuilder Friends the plan is much much bigger than just destroying the economy and population control.

      This plan has multiple purposes. Once the economy is destroyed there will be one world global economic, government and religious order. One global currency with technological control grid. Basically all purchases and transactions will be tracked and global surveillance. China is the prototype for this.

      Once this is fully in place a world dictator will arise. The bible calls him the antichrist (Revelation 13). He will enforce the world to take a mark and worship him. This mark is some type of chip implant or electronic tattoo. Without this no one can buy or sell. The first major thing he will do is the peace deal between the Israel and Palestinians. He will solve many issues that frustrate the world today the world will be impressed with him but he will do many evil things then Jesus Christ will destroy him when he returns. Its all happening fast.

      Are you born again? Will you be ready. Only Jesus can save you. Romans 10:9

    • walter of ontario

      “Soylent green is people ” what a great movie line….

  • C Lewis

    The financial reset is here!

  • double AA

    I was downtown Oakland and everything was closed except convenient stores and restaurants.
    It’s sad even Walgreens and cvs shuts down

  • Mike

    Last big market crash I remember was around 1987…. 33 years ago…..33

  • Big Summer Blowout

    The largest transfer of wealth in history.

    • Steely Dan

      @Mongo Slade those in power don’t want to buy anything. They just hold all the wealth to maintain control over the rest of us.

    • Mongo Slade

      @Steely Dan Just B4 EVERY Revolution, the underclass say the same thing. What happens WHEN the wealth don’t matter. And can no longer maintain control over the people?

    • Steely Dan

      @Mongo Slade then I guess there’s a revolution. Im seeing history come full circle once again

    • Mongo Slade

      @Steely Dan A continuance full circle cause the ppl who were put in power to look after the common person; CAN’T or WON’T even do their JOB. B well friend. And I’ll see U on the other side.

    • Steely Dan

      @Mongo Slade hopefully sooner than later. Be well.

  • Ares Apollo

    I was in NYC today, the foot traffic, car traffic felt incredibly light.

    • Vickie Clark

      Yeah, I’ve heard it’s like a ghost town there. It is strange thinking of NYC without the mass of people everywhere.

    • Michael Kranyak

      @Vickie Clark New York City is toast, riots, looting, high crime, defund police, no tourist, record high taxes, high end stores in the suburbs who needs them. Big cities are all no longer needed.

    • guy from kings highway

      i live here and it’s fine

    • Evan Koch

      @Michael Kranyak I went on a VACATION there some years ago. It was a WONDERFUL experience. I may never be able to have a VACATION there again. I could still physically go there but why would I want to? Do they not have broadway plays or tours of the statue of liberty anymore? Are the museums still open?

  • The Vigilante

    I wonder who the people are that disliked this video… This is all facts that’s why I exchange those paper notes for physical assets…There is no point of saving paper notes aka dollars when there priceless. Good luck ladies and gents the Hunger games have begun!

  • Black Slacks

    Store closing sign selling guy will be killin it for a while.

  • celtic spirit

    Amazon won. Retail as we know it is dead. Most large retailers who survive will be primarily e commerce. Amazon will soon lose its monopoly. Office, retail and restaurant real estate will be further devastated. Work from home will collapse former super cities like NYC, LA and San Fran. Wait and see people.

    • Evan Koch

      I can imagine a scene in 2070 where a very old person is talking to a child or teenager and telling them about how there once where huge buildings called “shopping malls” where many different stores were pressed together and you could go from store to store and each one sold different types of things and how the malls had places called “food courts” where there were several different fast food restaurants clustered together in one big room full of tables and chairs to eat at. I could imagine the youths listening to the story in fascination and near disbelief as such a place would seem alien to them.

    • Marlon Christian

      True

    • Lady Tron

      Absolutely🇬🇧👍

    • Charles Davis

      I am an actual ascendant of Aboriginal Ancient Ancestors as AmeriOriginal-One and; AMERICA is not the United States!!! Go read a map >>> What do you think – believe or truly know…eh??? http://americas-vs-united-states.blogspot.com/

  • Lillian Sanders

    I went to mall today so many stores are closed! Look like a ghost town! So sad

    • Evan Koch

      The mall near me has a dying food court because they had to remove all the tables and chairs. Everything is to go only and because you must wear your face mask in the mall you have to take all of the food you buy outside. Not having the option of just sitting down and eating has taken away most of the interest. I know someone personally who works at one of the food court restaurants that makes cheese steak sandwiches. He is about to lose that job as they are about to close. Its like a CHECKER BOARD in that one store is open and the next is permanently closed.

  • mad moxxxi

    And they called us preppers crazy lol

  • Keith Faulkner

    There is no going back to “Normal”.

  • Harper R

    Cashless society is coming!! Jesus said it will come at the end of days!! Draw near to God now!!!

    • al luvial

      Jesus predicted a cashless society? I call bullshit on that.

    • JohnHenry Reber

      Because you have to study the Bible. And have a bit of logical reason. And watch what is happening in the world.

      Revelation says people won’t be able to buy or sell. Governments are talking about Digital currency. China has one. And they do social shaming. Where if you talk bad about government or are a criminal, they dont let you buy airline tickets or get a train. They keep you locked in a city. So they know where you are. In a Society of Government Digital currency’s, they dont need banks, they can send money to your phone, in an app. and turn your account off. If you have no money, you are at government mercy. This is the part Revelation in the Bible was talking about. If you accept Jesus and say you are Christian, you will suffer in the world. They will starve you and persecute you.

    • al luvial

      @JohnHenry Reber wow! You talk about studying the Bible and having logical reason, what a hypocrite you are. I suppose that’s just par for the course when you believe in invisible friends.

    • JohnHenry Reber

      @al luvial hypocrite? Whatever. Im not going to argue with you. I know what is happening. I am sorry you dont see it. Its pretty sad, but i will pray someone or something opens your eyes soon.

    • al luvial

      @JohnHenry Reber I see a lot more clearly than you do. My vision ain’t clouded by religious bullshit and fairy tales.

  • ariana victoria

    I invested in both stock and crypto but I believe crypto is doing well better 💯

  • Raphael Wen

    Despite the Economic crash this is a good time to start up an investment 💯

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