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Keyword: debt

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  • Official: Paying Off Texas Toll Roads Debt Would Cost $38B

    05/24/2016 10:02:41 PM PDT · by Tolerance Sucks Rocks · 31 replies
    Construction Equipment Guide ^ | April 29, 2016 | Associated Press
    AUSTIN, Texas (AP) A Texas Department of Transportation official said the state would need $38 billion to pay off debt linked to dozens of toll roads and make the highways free to drivers. Executive director James Bass updated a Texas House panel in Austin. The 2015 Legislature ordered TxDOT to report on the status of Texas toll roads. A final report is due in September.
  • Chinese banks sitting on $1.7 trillion debt time bomb

    05/24/2016 6:07:35 AM PDT · by TigerLikesRooster · 17 replies
    ABC(Australia) ^ | May 24, 2016 | Stephen Letts
    Chinese banks sitting on $1.7 trillion debt time bomb by business reporter Stephen Letts Chinese banks are looking down the barrel of a staggering RMB 8 trillion - or $1.7 trillion - worth of losses according to the French investment bank Societe Generale. Put another way, 60 per cent of capital in China's banks is at risk as authorities start the delicate and dangerous process of reining in the debt-bloated and unprofitable state-owned enterprise (SOE) sector. Disturbingly though, debt is not only not shrinking, it is accelerating, making the eventual reckoning far worse. China's overall non-financial debt grew by 15.2...
  • The coming debt bust [China’s financial system]

    05/21/2016 6:38:20 PM PDT · by TigerLikesRooster · 21 replies
    Economist ^ | May 7th 2016
    China’s financial system The coming debt bust It is a question of when, not if, real trouble will hit in China May 7th 2016 | From the print edition Timekeeper CHINA was right to turn on the credit taps to prop up growth after the global financial crisis. It was wrong not to turn them off again. The country’s debt has increased just as quickly over the past two years as in the two years after the 2008 crunch. Its debt-to-GDP ratio has soared from 150% to nearly 260% over a decade, the kind of surge that is usually followed...
  • Why oil and gas companies are barely scraping by

    05/20/2016 8:29:09 PM PDT · by Lorianne · 12 replies
    Yahoo News ^ | 17 May 2016 | Justine Underhill
    Last quarter, over 86% of energy sector operating profits were used to cover the interest payments on debt. U.S. energy sector (XLE) is facing $370 billion of debt, a number that has more than doubled in the past decade. But even as oil rebounds off 13-year lows, many energy companies are struggling to stay afloat. To simply make the interest payments on the debt, energy companies shelled out $16.7 billion last year—about half of their total operating profit, according to data compiled by FactSet and Yahoo Finance. The figures from the past quarter are increasingly grim: over 86% of energy...
  • Central Bank Dump Of US Debt Deepens

    05/20/2016 6:42:09 PM PDT · by Lorianne · 25 replies
    Contra Corner ^ | 18 May 2016 | Patrick Gillespie
    Central banks are dumping America’s debt at a record pace. China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March. In all, central banks sold a net $17 billion. Sales had hit a record $57 billion in January. So far this year, the global bank debt dump has reached $123 billion. It’s the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday...
  • Stanford: Public Pension Debt Jumps 84%, to $4.8 trillion

    05/11/2016 6:54:55 AM PDT · by george76 · 8 replies
    Breitbart ^ | 11 May 2016 | Chriss W. Street
    the public pension debt for the 50 states and the District of Columbia jumped 84 percent in recent years, from $2.625 trillion in 2008 to $4.833 trillion in 2014. ... The highest pension debt/household is in Alaska, with an estimated $113,137 figure; Illinois and California are in the second and third highest rankings at more than $77,000 per household.” The lowest state pension debt per household is in Tennessee at $17,761. Illinois has the lowest “market funded ratio” (value of pension assets divided by market liability), at 23.3 percent. The other 49 U.S. states and Washington, D.C. have a market...
  • Treasury Secretary hopes to jump-start help for Puerto Rico (Balls in Ryan's court)

    05/09/2016 3:17:20 PM PDT · by Beautiful_Gracious_Skies · 26 replies
    AP ^ | May 9, 2016 | Mary Clare Jalonick
    Treasury Secretary Jacob Lew got a first-hand look at the humanitarian impact of Puerto Rico's $70 billion debt crisis, touring an elementary school struggling with limited electricity and a hospital unable to provide some basic services to infants....... Garcia said that Puerto Rico is not asking for a bailout and has not been offered one...... "If Congress does not act then we will need a bailout, and it will be very expensive to U.S. taxpayers," he said.
  • Donald Trump won't bail out Puerto Rico

    05/09/2016 1:14:14 PM PDT · by Beautiful_Gracious_Skies · 94 replies
    CNN -Money ^ | May 7, 2016 | Heather Long
    Donald Trump says Puerto Rico has "far far too much debt," and the U.S. government shouldn't bail out the island....... Puerto Rico is in crisis mode. It has run up $70 billion in debt, a staggering amount for an island of under 3.5 million people..... "You have to cut the debt way down and get back to business," he said.
  • 19.188 trillion and counting

    05/08/2016 10:48:53 AM PDT · by Degaston · 12 replies
    Since Boehner and Ryan took over the finances of the federal government we have seen the national debt keep growing. It's now 19.188 trillion. How will we pay this and the exponentially growing interest? The taxpayers are tapped out. The disciples of Bernie are wanting to burn even more dough. But it will be years before the Treasury will bring in enough revenue to cover the already accumulated deficit and interest obligations before it can spend another penny except through more borrowing.
  • Trump: I’ll reduce the national debt by getting creditors to accept less

    05/06/2016 1:00:04 PM PDT · by SeekAndFind · 72 replies
    Hotair ^ | 05/06/2016 | AllahPundit
    <p>Reminds me of something Mike Murphy said about Trump in the aftermath of Jeb’s collapse. The logic in favor of nominating another Bush was always, er, complicated, but the logic against nominating a loose cannon is straightforward.</p> <p>I’ll bet even Murphy didn’t think Trump would advertise the possibility that America’s creditors might not receive payment in full in a Trump administration. Choose your own preferred term for what he’s recommending here — renegotiation, bankruptcy, default.</p>
  • Donald Trump’s Idea to Cut National Debt: Get Creditors to Accept Less

    05/06/2016 5:38:20 AM PDT · by reaganaut1 · 154 replies
    New York Times ^ | May 6, 2016 | BINYAMIN APPELBAUM
    One day after assuring Americans he is not running for president “to make things unstable for the country,” the presumptive Republican nominee, Donald J. Trump, said in a television interview Thursday that he might seek to reduce the national debt by persuading creditors to accept something less than full payment. Asked whether the United States needed to pay its debts in full, or whether he could negotiate a partial repayment, Mr. Trump told the cable network CNBC, “I would borrow, knowing that if the economy crashed, you could make a deal.” He added, “And if the economy was good, it...
  • In 6 Months Since Budget Deal: Debt Up More Than $1 Trillion

    05/02/2016 7:14:18 PM PDT · by xzins · 66 replies
    CNS ^ | May 2, 2016 | Terence P. Jeffrey
    In the six months that have passed since then-retiring House Speaker John Boehner and Senate Majority Leader Mitch McConnell cut a budget deal with President Barack Obama that suspended the legal limit on the federal debt until March 15, 2017, the federal debt has increased by more than $1 trillion. The Senate passed “The Bipartisan Budget Act of 2015” with a vote held in the early morning hours of Friday, Oct. 30. Obama signed it on Monday, Nov. 2. At the close business on Oct. 30, 2015, the total federal debt was $18,152,981,685,747.52. By the close of business on April...
  • Atlantic City, America’s Worst-Rated Town, Stares at Default

    04/29/2016 10:40:44 AM PDT · by C19fan · 30 replies
    Wall Street Journal ^ | April 28, 2016 | Timothy W. Martin and Heather Gillers
    Atlantic City has so little money left that it could miss a $1.8 million bond payment due Sunday, a step that would make it the first New Jersey municipality to default on debt since the Great Depression. The Jersey Shore gambling destination has endured years of strain as a third of its casinos shut down. But now its cash levels are low enough that bankruptcy is a possibility for the 39,000-population city, according to Mayor Don Guardian.
  • Icahn: Republicans don’t understand economics and it’s killing the country

    04/28/2016 4:09:53 PM PDT · by mrsmith · 65 replies
    cnbc ^ | 4/28/2016 | Everett Rosenfeld
    "...Icahn, who Trump had previously suggested could serve as his Treasury secretary, warned that markets will have a "day of reckoning" without fiscal stimulus, and argued that the U.S. government "certainly could do more spending." "The Republican Party that I used to be more sympathetic with — I'm right in the middle now, although as you know I'm for Trump — but what I would say is Congress is in this massive gridlock," he said, explaining that the Republican-controlled body is "obsessed with this deficit to a point that I think it's almost pathological..." "
  • $500 Billion In Lost Oil Revenues Forces Gulf Nations To Turn To Debt Markets

    04/28/2016 2:24:51 PM PDT · by bananaman22 · 9 replies
    The International Monetary Fund (IMF) has projected a whopping $500 billion loss in revenue for the Gulf nations in 2016, which is 30 percent more than the $390 billion lost in 2015. The massive shortfall has crippled the gulf economies, which are facing record budget deficits and seeking external funding to overcome it. Many experts believe that $100 per barrel oil prices are history, and we might not revisit those prices for more than a decade. It implies that the recent crisis will not end as quickly as the downturn in 2007-2009. The oil-dependent nations will have to figure out...
  • Saudi Arabia Approves Economic Reform Program

    04/25/2016 6:40:41 AM PDT · by Tolerance Sucks Rocks · 15 replies
    The Wall Street Journal ^ | April 25, 2016 | Margherita Stancati and Dahlia Kholaif
    RIYADH—Saudi Arabia, crimped by low crude prices, approved Monday a long-term blueprint for the kingdom’s economic transformation aimed at reducing its dependence on oil. The multiyear plan, dubbed “Saudi Vision 2030,” was approved by the cabinet, according to Saudi Arabia’s monarch, King Salman. The Saudi cabinet, in a statement carried by the official Saudi Press Agency, said the government’s economic council would be in charge of overseeing the vision’s implementation. Saudi officials later Monday were to present a broad overview of the country’s most extensive economic shake-up in decades. The steep drop in oil prices has given new urgency to...
  • 5 Things Most People Don’t Understand About the National Debt

    04/23/2016 9:18:03 AM PDT · by expat_panama · 67 replies
    Money ^ | April 22, 2016 | Taylor Tepper
    Since this is an election year, you’re hearing a lot about the size of the national debt — and the financial imperative to expunge it before it gets passed on to our kids and grandkids. Donald Trump ... ...suggested earlier that it would be possible to pay off the entire national debt in about eight years... ...the only way to advance the debate is to get past the myths... #1) The federal government’s books are not like a family’s finances ...put yourself in the position of the government. Say you earn the typical American family income, and you spend and...
  • More Than 40% of Americans Not Making Student Loan Payments

    04/20/2016 3:09:01 PM PDT · by SeekAndFind · 42 replies
    Investopedia ^ | 04/15/2016 | By Shoshanna Delventhal
    Total U.S. student debt now topples credit card debt, surpassing the $1 trillion threshold in 2012. Each year a new class of students graduates from college; however, many of those graduates do not find jobs that can adequately allow them to pay back the hefty loans. (For related reading, see: Student Debt Passes $1 Trillion: Is College Worth the Investment?) A new report by the Education Department highlights the student debt epidemic. Not only is more than $200 billion in student debt owed to the federal government, several borrowers are woefully behind on making payments. The recent statement from the...
  • "When you run in debt; you give to another power over your liberty."-Franklin

    04/17/2016 5:29:35 AM PDT · by stars & stripes forever · 17 replies
    ...In his Poor Richard's Almanac, May 1757, Ben Franklin wrote: "Work as if you were to live 100 years; pray as if you were to die tomorrow." Benjamin Franklin cited the Spanish Empire's downfall in The Way to Wealth, 1758: "If you would be wealthy, says he...think of saving as well as of getting: the Indies have not made Spain rich, because her outgoes are greater than her incomes." Franklin expounded the dangers of debt in The Way to Wealth, 1758: "God gives all things to industry. Then plough deep, while sluggards sleep, and you shall have corn to sell...
  • Obama Cronies Cashing in on Puerto Rican Debt Crisis

    04/15/2016 11:15:38 AM PDT · by Kaslin · 6 replies
    Townhall.com ^ | April 15, 2016 | Brian McNicoll
    It’s not just the chickens that have come home to roost in Puerto Rico. It’s the hacks as well. The whole thing can be summed up in two words – Hack City. There were the public-sector union hacks whose contracts drove the Commonwealth into what is now estimated at $72 billion in debt. There were the government officials who encouraged this profligacy with indulgent hiring. There are the hacks in Washington who just want to send a big check and forget the whole thing, rather than insist on the reforms that put Puerto Rico in these straits in the first...
  • Obama to forgive the student debt of permanently disabled people

    04/12/2016 8:20:11 PM PDT · by Leaning Right · 49 replies
    Washington Post ^ | April 12, 2016 | Danielle Douglas-Gabriel
    The Obama administration plans to forgive $7.7 billion in federal student loans held by nearly 400,000 permanently disabled Americans. By law, anyone with a severe disability is eligible to have the government discharge their federal student loans. The administration took steps four years ago to make the process easier by letting people who are totally and permanently disabled use their Social Security designation to apply for a discharge, but few took advantage.
  • Congress Prepares Puerto Rico Bailout as Island Governor Suspends Debt Payments

    04/12/2016 3:39:14 PM PDT · by C19fan · 17 replies
    Breitbart ^ | April 12, 2016 | Mike Flynn
    Congress is expected to begin consideration of federal legislation to grant Puerto Rico extraordinary powers to escape a looming debt crisis. The island territory, home to just 3 million people, is faced with a massive $70 billion debt burden. During negotiations of the omnibus budget deal at the end of 2015, House Republican Speaker Rep. Paul Ryan (R-WI) promised House Democrat Leader Rep. Nancy Pelosi (D-CA) that Congress would consider legislation to grant the Island with bankruptcy protection from its debts. The tentative deadline to begin action was March 31.
  • Dem Says National Debt Not a Threat [semi-satire]

    04/12/2016 10:32:22 AM PDT · by John Semmens · 12 replies
    Semi-News/Semi-Satire ^ | 10 Apr 2016 | John Semmens
    Sen. Ed Markey (D-Mass) brushed off fears that a runaway national debt could pose a threat to America. "Look, a debt of whatever amount merely records resources that have already been acquired by the government," Markey argued. "The government has already gotten and spent that money for the benefit of America. Whether it ever pays this money back is basically irrelevant." "Let's imagine that, 'horror of horrors,' the government defaults on this debt," Markey continued. "Who's hurt? The people who lent the money to the government by buying bonds can obviously afford to lose this money. People who need their...
  • US Faces ‘Disastrous’ $3.4 Trillion Pension Funding Hole

    04/11/2016 7:28:43 PM PDT · by Lorianne · 27 replies
    Financial Times ^ | 10 April 2016 | Attica Mooney
    The US public pension system has developed a $3.4tn funding hole that will pile pressure on cities and states to cut spending or raise taxes to avoid Detroit-style bankruptcies. According to academic research shared exclusively with FTfm, the collective funding shortfall of US public pension funds is three times larger than official figures showed, and is getting bigger. Devin Nunes, a US Republican congressman, said: “It has been clear for years that many cities and states are critically underfunding their pension programmes and hiding the fiscal holes with accounting tricks.” Mr Nunes, who put forward a bill to the House...
  • Facebook Meme, is it real

    04/09/2016 2:40:40 PM PDT · by hattend · 124 replies
    Facebook Meme ^ | Recently | Unknown
    Does anybody believe this is possible?
  • GAO: US national debt approaching 100% of GDP; Unmanageable and Unsustainable

    04/08/2016 7:12:37 AM PDT · by SeekAndFind · 37 replies
    American Thinker ^ | 04/08/2016 | Rick Moran
    An auditor for the Government Accountability Office told the Senate budget committee that in the next 15-25 years, the amount of public debt will exceed all the goods and services produced by the entire U.S. economy.  Without action on the debt, the auditor said the percent of debt to GDP could rise to 200% or 300%. Washington Free Beacon: Gene Dodaro, the comptroller general for the Government Accountability Office, testified at the Senate Budget Committee to provide the results of its audit on the government’s financial books. “We’re very heavily leveraged in debt,” Dodaro said. “The historical average post-World War II...
  • Dept. of Ed. Wonders Why 40% of Student Borrowers Don’t Make Payments; Blame Bush (Seriously)!

    04/07/2016 7:32:53 AM PDT · by SeekAndFind · 40 replies
    Mish Talk ^ | 04/07/2016 | Mike Shedlock
    Over 40 percent of those in student loan programs have stopped making payments. Many borrowers have never made any payments.The department of education (a useless body that I would eliminate in one second if given the chance), cannot figure out why this is happening.“We obviously have not cracked that nut but we want to keep working on it,” said Ted Mitchell, the Education Department’s under secretary.The Wall Street Journal reports More Than 40% of Student Borrowers Aren’t Making Payments. More than 40% of Americans who borrowed from the government’s main student-loan program aren’t making payments or are behind on...
  • Donald Trump's Unusual Plan to Lower the National Debt: Sell Off 19 Trillion In Government Assets

    04/03/2016 2:28:33 PM PDT · by drewh · 524 replies
    NBC News ^ | 4 hours ago | by ANNE THOMPSON and CHRISTINA COLEBURN
    As president, Donald Trump would sell off $16 trillion worth of U.S. government assets in order to fulfill his pledge to eliminate the national debt in eight years, senior adviser with the campaign Barry Bennett said. "The United States government owns more real estate than anybody else, more land than anybody else, more energy than anybody else," Bennett told Chris Jansing Sunday on MSNBC. "We can get rid of government buildings we're not using, we can extract the energy from government lands, we can do all kinds of things to extract value from the assets that we hold." In a...
  • America’s Junk-in-the-Trunk Economy

    03/30/2016 11:17:41 PM PDT · by gattaca · 6 replies
    Philadelphia Church of God The Trumpet ^ | March 31, 2016 | Robert Morley
    America has too much junk in the trunk. That’s the assessment of Standard and Poor’s credit rating agency. Their average rating on United States corporate debt just sagged to almost a 15-year low. According to the agency, America faces a debt diet that many companies will not survive. And guess who is to blame? “We believe corporate default rates could increase over the next few years,” warn S&P credit analysts Jacob Crooks and David Tesher. “Lower-quality speculative-grade issuers seeking refinancing or new financing will likely face more onerous terms, conditions and funding challenges, especially in a more nominalized credit environment....
  • Chicago Debt Downgraded to Near ‘Junk Bonds’

    03/30/2016 5:42:15 AM PDT · by detective · 5 replies
    Breitbart ^ | March 29, 2016
    Fitch Ratings downgraded the City of Chicago’s credit rating to just one step above “junk bonds” on March 28.
  • Fitch lowers Chicago credit rating to 1 step above junk

    03/29/2016 7:48:08 AM PDT · by C19fan · 15 replies
    AP ^ | March 29, 2016 | Staff
    Chicago's credit rating has been downgraded to one step above junk grade by Fitch Ratings after the Illinois Supreme Court struck down Mayor Rahm Emanuel's reform plan for two city pensions. Fitch lowered Chicago's rating from BBB+ to BBB- on Monday, increasing the cost of borrowing.
  • The U.S. Trade Deficit Is Not A Debt To Repay

    03/23/2016 5:55:46 AM PDT · by expat_panama · 37 replies
    Forbes ^ | Mar 22, 2016 | Dan Ikenson
    It’s a presidential election year so the quadrennially-maligned U.S. trade deficit is taking its lumps. Donald Trump says the trade deficit means the United States is losing at trade, and it’s losing because U.S. trade negotiators aren’t smart enough. Bernie Sanders believes the trade deficit deprives the economy of production and good jobs. Meanwhile, some of the economics commentariat argue that trade deficits are bad because they represent a burden on future generations – a debt that must be repaid. Trump and Sanders are both wrong... ...the debt argument is being used to wrap trade skepticism in a moral sheen...
  • China's Latest Problem: Half A Trillion Dollars In Unpaid Bills

    03/20/2016 6:00:38 PM PDT · by SeekAndFind · 9 replies
    Zero Hedge ^ | 03/20/2016 | Tyler Durden
    It’s no secret by now that China has a rather serious debt problem.Although getting a precise read on it is next to impossible, all told the debt pile probably sums to something like $30 trillion. Various reports put the figure at between 250% and 300% of GDP all-in and as we reported back in January, that may have swelled to more than 340% by the end of 2015.Corporate debt-to-GDP was around 125% in 2014 and probably sits above 150% now. Depending on what business you’re in, servicing that debt has become all but impossible. As Macquarie discovered last autumn,...
  • Credit Card Debt In The United States Is Approaching A Trillion Dollars

    03/19/2016 8:00:52 PM PDT · by SeekAndFind · 49 replies
    TEC ^ | 03/19/2016 | Michael Snyder
    For the first time ever, total credit card debt in the United States is approaching a trillion dollars. Instead of learning painful lessons from the last recession, Americans continue to make the same horrendous financial mistakes over and over again. In fact, U.S. consumers accumulated more new credit card debt during the 4th quarter of 2015 than they did during the years of 2009, 2010 and 2011 combined. That is absolutely insanity, because other than payday loans, credit card debt is just about the worst kind of debt that consumers could possibly go into. Extremely high rates of interest, combined...
  • Foreign governments dump U.S. debt at record rate

    03/16/2016 4:26:38 PM PDT · by SkyPilot · 18 replies
    CNN ^ | 16 March 16 | Matt Egan
    In a bid to raise cash, foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes in January, according to figures released on Tuesday. That is up from $48 billion in December and the highest monthly tally on record going back to 1978. It's part of a broader trend that gathered steam last year when central banks sold a record $225 billion of U.S. debt. "Foreigners have no longer been our BFF when it comes to buying U.S. Treasuries," Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a client note. So...
  • Federal debt as percent of GDP reaches post-WWII record high

    03/16/2016 5:20:36 AM PDT · by expat_panama · 9 replies
    American Thinker ^ | March 16, 2016 | Sierra Rayne
    New data released Monday by the Federal Reserve shows U.S. federal debt has reached a post-WWII record high, now at 104.3% of GDP in Q4 of 2015. The previous record was set in Q1 of 2014 at 103.6% of GDP. In Q4 of 2008, the last full quarter before President Barack Obama came to office, federal debt was 73.5% of GDP -- 31% of GDP below its current value. Obama has, by far, overseen the largest increase in federal debt as a share of the American economy among all presidents during the past half-century. George W. Bush is in...
  • Global fears as markets lose faith in central banks

    03/06/2016 5:42:37 PM PST · by SkyPilot · 23 replies
    The Times ^ | 7 Mar 16 | Patrick Hosking, Financial Editor and Philip Aldrick, Economics Editor
    The global economy is heading for a storm as faith in policymakers dwindles, according to a stark warning from one of the world’s most respected financial institutions. The uneasy calm in financial markets last year has given way to turbulence, the Bank for International Settlements, known as the central bank for the world’s central banks, said in its latest quarterly report. Financial markets are losing faith in the healing power of central banks and their latest policy weapon - negative interest rates - to boost the world's main economies, the bank said.
  • Debtors face day of reckoning as credit bubble bursts

    03/06/2016 8:53:47 AM PST · by NRx · 73 replies
    The Telegraph ^ | 03-06-2016 | Mehreen Khan
    The world's credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted global economy, the Bank of International Settlements has warned. The globe's top financial watchdog called time on the world's debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year. With financial markets thrown into fresh paroxysms in 2016, oscillating between extremes of "hope and fear", the over-leveraged world was finally approaching a day of reckoning, said...
  • Central Banks Have Signed Their Death Warrants

    02/28/2016 8:35:01 PM PST · by TigerLikesRooster · 31 replies
    Daily Reckoning ^ | February 22, 2016 | David Stockman
    Central Banks Have Signed Their Death Warrants During the past year U.S. consumption spending for health care rose by 5%. Spending at restaurants and bars were up by 9%, while spending for gasoline and other energy products was down by 22%. This was Mr. Market at work--millions of households reallocating their spending in response to relative price changes. It had nothing to do with a macroeconomic abstraction called "weak demand". Actually, the medical care component of the CPI rose 3.3% last year. Housing and shelter were up by 3.2%, while gasoline prices were down by 7.3%. It all added up...
  • Here’s why (and how) the government will ‘borrow’ your retirement savings

    02/27/2016 1:15:20 PM PST · by SkyPilot · 55 replies
    Sovereignman.com copied onto ZeroHedge ^ | February 15, 201616 copied by ZeroHedge on Feb 16 | Simon Black copied by Tyler Durden
    According to financial research firm ICI, total retirement assets in the Land of the Free now exceed $23 trillion. $7.3 trillion of that is held in Individual Retirement Accounts (IRAs). That’s an appetizing figure, especially for a government that just passed $19 trillion in debt and is in pressing need of new funding sources. Even when you account for all federal assets (like national parks and aircraft carriers), the government’s "net financial position" according to its own accounting is negative $17.7 trillion. And that number doesn’t include unfunded Social Security entitlements, which the government estimates is another $42 trillion. The...
  • OECD's William White: In Terms of Debt, the Situation Is Way Worse than 2007

    02/26/2016 8:49:35 AM PST · by Lorianne · 2 replies
    Financial Sense ^ | 24 February 2016
    William White, chairman of the Economic and Development Review Committee at the OECD and former chief economist at the Bank for International Settlements (BIS), says the risks posed by global debt levels are greater today than they were in 2007 and that central banking monetary policy has lost its effectiveness. He also explains the crucial differences between modern macroeconomic modeling and complexity theory (or viewing the economy as a complex adaptive system) and the key lessons this has for policymakers, both fiscal and monetary. Here's a portion of his recent interview with Financial Sense airing Friday on the Newshour page:...
  • After Original Bondholders Stiffed, GM Issues New Debt

    02/25/2016 1:08:22 PM PST · by jazusamo · 30 replies
    NLPC ^ | February 25, 2016 | Mark Modica
    "Fool me once, shame on you; fool me twice shame on me." That is a cliché that investors should keep in mind if they are considering buying into General Motors' latest debt offering. In fact, holders of GM common stock should also assess the growing similarity that New GM has with the bankrupted Old GM. GM announced last week that it will be offering an estimated $2 billion of unsecured debt to help prop up underfunded pensions with additional proceeds used for general business purposes. The move follows a contradictory continuing dialogue that proclaims the company is so cash...
  • The Subprime Auto Loan Meltdown Is Here

    02/24/2016 5:36:40 PM PST · by SkyPilot · 29 replies
    The Economic Collapse ^ | 24 Feb 16 | Michael Snyder
    Uh oh - here we go again. Do you remember the subprime mortgage meltdown during the last financial crisis? Well, now a similar thing is happening with auto loans. The auto industry has been doing better than many other areas of the economy in recent years, but this "mini-boom" was fueled in large part by customers with subprime credit. According to Equifax, an astounding 23.5 percent of all new auto loans were made to subprime borrowers in 2015. At this point, there is a total of somewhere around $200 billion in subprime auto loans floating around out there, and...
  • The World's Biggest Banks May Very Well Grow Even Larger

    02/23/2016 7:11:16 PM PST · by Tolerance Sucks Rocks · 14 replies
    Fortune ^ | February 23, 2016 | Eleanor Bloxham
    Ever since the financial crisis, many outside the wealthy elite (sometimes referred to as populists) have argued that the largest banks are too big and too risky. Minneapolis Federal Reserve president Neel Kashkari recently echoed those beliefs.Yet if a new Federal Reserve proposal goes through, Wells Fargo and other large banks might get even bigger and riskier, adding billions to their balance sheets that could increase the banks’ risk profiles.The Federal Reserve says the proposal, which specifies the amount and kind of debt that systemically important large banks must hold, could help make sure that those banks can be wound...
  • Federal Reserve Chair Yellen Grilled About Negative Interest Rates By Congress

    02/17/2016 9:41:33 AM PST · by SeekAndFind · 37 replies
    International Business Times ^ | 02/17/2016 | Owen Davis
    Federal Reserve Chairwoman Janet Yellen faced what may have seemed like an absurd line of questioning on Capitol Hill this week: Has the Fed considered negative interest rates? It's not a fantasy. At central banks around the world, negative benchmark interest rates have become the new normal, leading to some unusual paradoxes. In Denmark, instead of paying interest on their mortgages, many borrowers have been receiving payments from banks on their home loans. On the flip side, some Swiss bank customers have had to pay banks to keep cash in savings accounts. Yellen told Congress Thursday, following negative moves by central banks in Europe and elsewhere, the Fed has...
  • US Marshals arresting people for not paying their federal student loans

    02/16/2016 7:43:54 AM PST · by TigerClaws · 96 replies
    HOUSTON (FOX 26) - Believe it or not, the US Marshals Service in Houston is arresting people for not paying their outstanding federal student loans. Paul Aker says he was arrested at his home last week for a $1500 federal student loan he received in 1987. He says seven deputy US Marshals showed up at his home with guns and took him to federal court where he had to sign a payment plan for the 29-year-old school loan. Congressman Gene Green says the federal government is now using private debt collectors to go after those who owe student loans. Green...
  • 'Please Pray We Overcome This': Kanye West Claims He Is '$53 Million in Personal Debt'

    02/14/2016 4:38:27 PM PST · by SoFloFreeper · 101 replies
    People Magazine/yahoo... ^ | 2/14/16 | Adam Carlson
    Kanye West made a reference to being "$53 million dollars in personal debt" on Saturday. West, whose Twitter announcements have made headlines multiple times in recent days, tweeted, "I write this to you my brothers while still 53 million dollars in personal debt... Please pray we overcome... This is my true heart..." I write this to you my brothers while still 53 million dollars in personal debt... Please pray we overcome... This is my true heart...
  • Will crash of 2016 be worse than 2008? Interview with Charles Ortel

    02/13/2016 7:15:33 AM PST · by Randall_S · 19 replies
    USA Transnational Report ^ | February 13, 2016 | USA Transnational Report
    Will the crash of 2016 be worse than 2008? Central banks have failed to solve the crisis, and instead have taken on more debt than any time in history. At the same time, western institutions are welcoming in Islamic money. Does this mean Sharia-compliant finance? Listen here: http://usatransnationalreport.org/2016/02/13/usa-transnational-report-february-13-2016-guest-charles-ortel/ While European banks, such as Deutsche Bank, falter, what does this mean for the U.S. economy? And what does the future look like? Charles Ortel is an investor and writer interested in economics, geo-politics, history, travel and just, lasting peace. He has done extensive research on the fraudulent activities of the Clinton...
  • Obama budget busts the $4 trillion mark

    02/12/2016 7:32:31 AM PST · by SeekAndFind · 20 replies
    Hotair ^ | 02/12/2016 | Ed Morrissey
    While the rest of the world focused on the New Hampshire primary, the White House dropped a budget bomb. Congress will get a $4.1 trillion spending plan for FY2017 from Barack Obama, complete with a massive $2.8 trillion tax hike and a set of assumptions that boggles the imagination nearly as much as the topline spending number:CLICK ABOVE LINK FOR THE VIDEO “The budget that we're releasing today reflects my priorities and the priorities that I believe will help advance security and prosperity in America for many years to come,” Obama told reporters at the White House. “It adheres...
  • Liberalism's Legacy: Debt and Dependency

    02/11/2016 9:38:50 AM PST · by Kaslin · 6 replies
    Townhall.com ^ | February 11, 2016 | Terry Jeffrey
    How will history remember the presidency of Barack Obama? In the budget message he sent Congress this week, Obama portrays himself as a president who led America back to economic good times. "When I took office, our nation was in the midst of the worst recession since the Great Depression," Obama wrote. "The economy was shedding 800,000 jobs a month. The auto industry was on the brink of collapse and our manufacturing sector was in decline. Many families were struggling to pay their bills and make ends meet. Millions more saw their savings evaporate, even as retirement neared. "But...