Real Estate experts say they’re ready to go big on a new wave of extreme weather.
Bloomberg: “We are going to be here for a while,” said Michael McKeown, head of the National Association of Realtors.
“It’s not a matter of if, but when.”
The biggest challenge in a worst-case scenario is keeping the financial system functioning.
“The system has to stay on a very tight leash, and that’s what we are working on,” said Greg Kephart, chief executive of the American Association of State and Local Tax Administrators.
“But it will be a long haul, we think.”
For now, there are signs that the economy will take a hit in the aftermath of the winter storm.
According to the latest data from the National Employment Law Project, hiring slowed in February, which is down from February’s 1.3 percent increase.
And as we reported earlier, there’s no sign that the recession-era recovery is in full swing yet.
The unemployment rate remains at 4.3% for the month, and more than a quarter of Americans don’t have a job.
But for many people, the worst-off have already seen a return to normal.
Here’s what you need to know about the financial crisis, and how you can prepare.
What’s the Biggest Challenge?
“There’s going to have to be a big adjustment for the next couple of years,” said Matthew Miller, chief economist for the U.S. Conference of Mayors.
He predicted that the recovery will take years.
“I think that the biggest challenge is a new kind of financial system that is going to require some sort of financial intervention,” Miller said.
In a recession, that’s the equivalent of an emergency fund, and it’s usually reserved for the most vulnerable people, including the unemployed and those who are struggling financially.
But Miller said in a crisis, that type of emergency fund can run into the hundreds of millions of dollars, which can be very costly.
“There will be an opportunity for a lot of people who are in that emergency fund to take advantage of the system,” he said.
That’s why people can expect to see some of the financial services companies that have long struggled with financial losses in the downturn.
But in a new economy, there will also be an increased focus on the ability of people to pay their bills.
The problem is that many people aren’t ready for that, according to Brian Pomerantz, CEO of the Uptown Financial Group.
He said that there are still many people out of work who are unable to make payments on their mortgages.
“This is going into an entirely new financial system,” Pomeranz said.
“You have to have people making payments on time.
There’s no way to go into an emergency situation and not have a cash flow.”
The Real Cost Of The Crisis Many people have to rely on government assistance programs, which have proven to be the biggest hit.
A recent report from the Ubsan Institute of Technology found that Americans who are not receiving unemployment benefits will need to spend more than $1,200 a month on food, clothing and other necessities.
“If you’re not receiving benefits, that means you’re probably not in the position to pay your bills,” said Miller.
“And if you’re out of a job and can’t get a job, you’re going to find that the government is not going to give you that much help,” he added.
In addition, people in the emergency funds will also have to cope with rising health costs, which will be particularly difficult.
“People in the public sector will have to deal with a lot more health costs than they were in a recession,” Miller added.
How Much Will It Cost?
The government has a plan to help people pay off their debts.
But there are other ways people can pay their debt, including through an emergency loan or even buying a home.
“We’re looking at an idea of what a mortgage could look like in a downturn, where the government will lend you a $10,000 loan, but if you lose your job you might have to borrow a $50,000 or $100,000,” Miller explained.
“That’s really hard to manage.”
And many people won’t be able to afford to take out a mortgage at all.
Some will have little savings or be unable to pay down their mortgage in full, while others may be unable or unwilling to make a down payment.
“A lot of these people don’t know what the future holds for them,” Miller noted.