Its Over

MIDNIGHT IN AMERICA PART IV

By Dylan Jovine (Go to Part I to read first)

Crack #3:
The Coming Pension Fund Wipeout
Economic crack number three is the coming pension fund wipeout.

Covid was bad for a lot of reasons.

To begin, it is estimated that 6.86 million people died worldwide.

And 1.2 million of those who died were Americans, which makes it twice as deadly as the Spanish Flu was in this country in 1918.

Some of the people we lost were my friends.

But as bad as Covid was, locking down the country was even worse. In this case, the cure was worse than the disease.

You already know that we added $11 trillion in debt since Covid hit.

And a lot of that money was sent to people because they were told to stay home.

That’s why we’ve had the terrible inflation we’ve had in this country the past few years.

But the lockdowns caused another problem: people stopped coming to the office.

And this new “work-from-home culture” is causing a collapse of the commercial real estate market.

As people keep working from home, it’s turning into a nightmare for downtown office districts around the country.

According to St. Louis Federal Reserve, commercial real estate prices have recently begun to nosedive.

As you can see from this chart below, they haven’t been hit this hard since the Great Recession of 2009.

Cities around the country are scrambling to save their office districts.

And the problem is about to get worse.

Banks are sitting on a ticking time bomb: almost $3 trillion in commercial real estate debt.

But what most people don’t know is that pension funds are one of the biggest investors in commercial real estate.

And they’re starting to get hammered.

Pension funds like Calstrs, the California State Teachers’ Retirement System, are already taking big hits.

And it’s just the start.

The simple fact that the commercial real estate market is causing a $6 trillion meltdown for banks and pension funds is a topic most people don’t grasp.

But there’s a way for smart investors to personally benefit from it.

When you get your copy of “Midnight in America,” you’ll understand clearly how to protect yourself and prosper.

Now let’s move on to the next two cracks and then we will discuss why our foundation is so weak.