Scary Charts 05.06.20 — Auto Loans

Subprime Auto Loans Blow Up, Get Very Messy

US-auto-loan-deliquencies-dollars-2020-q1

Delinquencies of auto loans to borrowers with prime credit ratings were near historic lows (0.27% in March), according to Fitch data. In the pre-Virus Good Times, it was the subprime loans – with credit scores below 620 – that were blowing up…

In mid-March, the world changed for subprime lenders. Delinquencies were already exploding in the Good Times, and now they’re in utter turmoil.

In addition, it is likely that prime loans are becoming delinquent as well, as many of these people too have lost their jobs – this includes dentists and other professionals with high incomes and big debts and lots of expenses and no savings, who’d suddenly had to close their operations, and their cash flow disappeared. If they fall behind on their debts, they’ll be subprime in a hurry.

 

Nationwide Moves To Permanent Work-From-Home Strategy

“We’ve been investing in our technological capabilities for years, and those investments really paid off when we needed to transition quickly to a 98 percent work-from-home model,” said Nationwide CEO Kirt Walker.

I’ve been working from home for nearly 14 years.  Social distancing comes naturally to me at this point in time.  It’s interesting to me a virus will be remembered as the Gladwell tipping point for showing the corporate world  a better way of working.

98% permanent WFH!

FREE Life Insurance (MA and CT only, other restrictions may apply)

Massachusetts Mutual Life Insurance Company (MassMutual) today announced the launch of MassMutual HealthBridge, which will provide free term life insurance to the brave and resilient frontline healthcare workers across Massachusetts and Connecticut risking their lives during the COVID-19 pandemic.

MassMutual Donates $3B Of Free Life Insurance To Healthcare Workers

Even if you’re a big insurance company hater you have to admit this is pretty awesome.

Be Proactive – Be Prepared

Marler Clark is a law firm in Seattle Washington.  Outstandingly proactive and quoted here for my readers to view.

I especially liked the generous financial contribution to the employees and the last item on the list to stock in your pantry.

Here is what I sent my staff late last week:

All, see symptoms below – if you are sick, please stay home.

https://www.cdc.gov/coronavirus/2019-ncov/about/symptoms.html

I have asked Chris and Michelle to give me some ideas on recommendations on how to responsibly deal with this from a medical issue.  We will give you all our thoughts early next week.

All, please email to Leslie all your contact information and a close contact too.  Leslie, please share that with all.

All, please let me know if anyone needs any technology to work from home if necessary if this becomes a bigger problem.  Think about what you might need to work from home for an extended period of time.  What do you need to effectively do your job from home – computer, paper, pens, etc.?  COVID-19 is not an excuse to work from home, but I want to be prepared and sensible.

Also, let’s look at travel schedules over the coming months to see if there are alternatives.  Please shoot me your travel over the next 30-60 days.

All, take a hard look at your cases – what deadlines might be impacted by Court and other office closures, etc.  I want us to be proactive and think ahead.  I do not want deadlines missed.

Finally, not to be a “prepper,” but Kelli, please drop $2,500 (pre-tax) into everyone’s account on Monday to be used as they see fit to prepare for some disruptions.  I have not thought of exactly what those needs might be, but there are probably a few websites that have suggestions.

Here are some ideas for being prepared for home:

All medications (over the counter *ibuprofen* , allergy, cold etc and prescriptions )

All household products you will need for two weeks (toilet paper, soap, paper towels, laundry detergent, cleaning supplies, etc)

Supply of water for two weeks

Food for two weeks

         ⁃        Chicken broth

         ⁃        Beans

         ⁃        Onions

         ⁃        Garlic

         ⁃        Potatoes – sweet, Yukon, etc

         ⁃        Pasta

         ⁃        Canned tomatoes

         ⁃        Steel cut oats

         ⁃        Peanut butter

         ⁃        Bread *freezer*

         ⁃        Eggs

         ⁃        Frozen meat

         ⁃        Canned fish

         ⁃        Jerky or dried meat

         ⁃        Dried nuts and fruit

         ⁃        Popcorn

         ⁃        Chocolate

         ⁃        Wine/booze of choice

Link to the full article post.

 

Covid-19 — Navigating the Uncharted – MUST READ

This suggests that the overall clinical consequences of Covid-19 may ultimately be more akin to those of a severe seasonal influenza (which has a case fatality rate of approximately 0.1%) or a pandemic influenza (similar to those in 1957 and 1968) rather than a disease similar to SARS or MERS, which have had case fatality rates of 9 to 10% and 36%, respectively.2

Click here to read the full NEJM Editorial.

I’m hoping the NEJM editorial gets read and shared widely.  Clearly all individuals and businesses need to be prepared for the worst case scenario.  If you manage a large company, go back and review/revise your disaster recovery/business continuation plans. I’d make absolutely certain your tele-commuting platform is A+ and working as well as possible.  You may even consider expanding your remote work capabilities because every one of your employees might be using it.  Soon.