On September 29, 2008, the Dow Jones created history. On this day, the Dow Jones fell a record 777 points. This came on the heels of a failed bank bailout bill in Congress.
So why did the stock market crash? The answer is complicated, but the underlying cause can be simplified: too many people had taken out loans that they simply could not afford. Lenders had paper thin underwriting standards for providing loans, and essentially gave out loans to anyone who asked. Big banks were failing as a result, such as Bear Stearns and Lehman Brothers.
The unemployment rate reached 10% as a result of this crash and a record 3.8 million people were forced to foreclose their homes.
Let’s pause to compare these numbers to 2020. The unemployment rate in the US in April of 2020 was a breathtaking 15%. Moody’s Analytics, an economic-research firm, calculated that 12.8 million Americans could owe an average of $5,400 from missed payments of rent as a result of COVID-19. In addition, 30 to 40 million people could face potential eviction once moratoriums expire and homeowners and renters can be legally evicted from their homes. Currently as of March 2021, moratoriums vary by state. Seek out free consultations offered by legal services across America under their memberships to determine whether or not your state still has a moratorium in place and if so, when it is set to expire.
Again, the comparisons are not even close. And that is especially scary, considering the 2008 stock market crash shook people to their core.
Other fallouts from the Covid-19 pandemic include the extreme negative effects on the economy and the ability of homeowners to purchase a home in the future. The economy is taking a big blow as a result of renter debt because many renters are being forced to put all their money into rent. As a result, they are not spending their money elsewhere, and thus the economy is negatively impacted. Furthermore, if renters are not meeting their rent or even their credit card bills, their credit will suffer. Therefore, they will have a tough time securing future loans, credit cards, or even a house if they have a bad credit score or were evicted as a result of COVID-19.
Therefore, we here at JUSTLAW find it particularly relevant to present our JUSTLAW membership to you. The membership hosts a variety of perks that are geared towards providing our customers with the most efficient and affordable legal services. Among other things, we offer free consultations on a host of new matters that you are presented with over your lifetime. In addition, take advantage of our free annual legal checkup. The overall membership is an inexpensive peace of mind insurance that is useful in this COVID like world. One of the many specialities our attorneys have to offer includes debt reduction. So, do not let this opportunity slip. Take advantage of our services today!