We've been worried about retail throughout this pandemic, and is it time to add the real estate sector to that list?
Jim Cramer thinks so.
In his morning piece for Real Money, Jim Cramer wrote, "Right now, commercially, many companies are not paying rent. Its been a less-than-fatal situation because many landlords take three months' security deposits. So if you haven't paid, they are simply going through that deposit. But there won't be anything left in July and it's not clear whether companies will be able to make it, especially restaurants with, at most, half of the revenue coming in but a full staff to pay."
"The consequences of real estate defaults will ripple through the economy like a financial COVID. There are mortgage bonds that will default. There will be landlords without cash to add to the economy. There will be empty stores to beat the band," he continued.
Cramer said that the real estate sector is "vulnerable."
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