Keyword: interest

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  • Why The Fed Ended QE And Why They Can’t Restart It

    03/24/2015 1:54:38 PM PDT · by Signalman · 16 replies
    Dick Morris ^ | 3/24/2015 | Dick Morris
    Many stock market investors have, in the back of their minds, the comforting illusion that the Quantitative Easing with which the Fed showered Wall Street during the past three years could restart if the market falters. (Under Quantitative Easing, the Fed gave banks $85 billion each month to help stimulate lending and spending and to drive up stock prices). Some also see that the impending rise in interest rates can be reversed if the economy begins to drop. Both assumptions are really illusions. The factors that impelled an end to Quantitative Easing and to higher interest rates rule out a...
  • Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt

    11/28/2014 5:30:08 PM PST · by xzins · 45 replies
    CNS ^ | November 28, 2014 | Terence P. Jeffrey
    The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government. During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone...
  • The Average American Can't Answer These Three Simple Finance Questions

    05/09/2014 8:48:55 AM PDT · by SeekAndFind · 86 replies
    Business Insider ^ | 05/09/2014 | Cullen Roche
    Here’s a frightening fact via The Atlantic’s Moises Naim.  Roughly half of the world can’t answer these three questions correctly: 1.  Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow? A) more than $102; B) exactly $102; C) less than $102; D) do not know; refuse to answer.2.  Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you...
  • CBS News Denies Conflict of Interest over Exec’s Familial Ties to White House

    05/01/2014 5:33:09 PM PDT · by Nachum · 18 replies
    Mediaite ^ | 5/1/14 | Josh Feldman
    Former CBS News reporter Sharyl Attkisson has made the media rounds claiming that network management was not exactly happy she was covering stories critical of the Obama administration. When new Benghazi information was made public this week, CBS News covered the new details (with a disclosure that Ben Rhodes, the Obama administration official at the center of the controversy, is the brother of CBS News President David Rhodes). However, some conservative sites still claimed a serious conflict of interest, with the Heritage Network blog and the Washington Free Beacon picked up on the familial connection.
  • Demand For High-Interest Payday Loans Soars In Minnesota

    02/23/2014 8:22:16 AM PST · by Son House · 24 replies
    MinnPost ^ | 01/28/13 | Jeff Hargarten, Kevin Burbach, Calvin Swanson, Cali Owings and Shayna Chapel
    Call it predatory lending. Or call it financial service for the neediest. Either way, more Minnesotans are turning to high-interest payday loans and other services outside the mainstream banking system, controversial enterprises that operate through a loophole to dodge state restrictions. On a typical morning throughout Minnesota, customers stream into any one of some 100 storefronts where they can borrow hundreds of dollars in minutes with no credit check – at Super Cash on the north side of Bloomington, for example, at Ace Minnesota Corp. on Nicollet Avenue in Richfield and across the metro on Roseville’s Rice Street at PayDay...
  • Interest on our country's debt to nearly quadruple over decade - CBO

    02/12/2014 10:10:08 AM PST · by SeekAndFind · 16 replies
    CNN Money ^ | 02/05/2014 | By Jeanne Sahadi
    <p>For the next few years, deficits are looking pretty good. But the interest owed on the country's cumulative debt is set to nearly quadruple over the next decade.</p> <p>The Congressional Budget Office projects that interest will be $233 billion this year, or 1.3% as a share of the economy.</p>
  • What if interest on the national debt skyrockets? Threat looms over Washington’s budget

    01/06/2014 7:36:03 AM PST · by bestintxas · 17 replies
    wash times ^ | 1/6/14 | jt young
    Despite the federal deficit’s recent decline, it remains large, and the nation’s growing debt threatens to quickly accelerate it to new heights. During the past four years, the deficit has been historically high and federal interest rates historically low. Together, they have overshadowed the rapidly increasing federal debt. Now, with the deficit down from its heights and interest rates up from their lows, a looming menace is becoming clear: The federal government’s increasing debt has created the equivalent of a large, new entitlement-spending program in the form of debt-service costs. No longer a peacetime record, the deficit still remains very...
  • Sea of Green Foam: Global Sovereign Yields Fall On Syria/Weak Data, Oil Zooms

    08/27/2013 12:55:00 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/27/2013 | Anthony B. Sanders
    The global sovereign yield table is a sea of green foam. I say green foam because the Central Banks are still pumping air into the water at high speed. wbm082713 Except for the PIGS (Portugal, Italy, Greece and Spain). They are seeing rising sovereign yields for the 10 years. The US is down 7.1 basis points on the previous poor durable goods report and Syria war jitters. Japan is down 2.1 bps while the UK is down 11.3 bps. Oil is shooting through the roof. But corn, an ingredient in ethanol, is falling. oilF Green sea form and oil don’t...
  • Posted August 16, 2013 Increase in Luxury Listings Fueled by Low Interest Rates

    08/18/2013 4:22:37 AM PDT · by William Tell 2 · 1 replies ^ | 8-16-13 | Juliette Fairley
    NEW YORK (MainStreet) — The housing market is on the rise again after...
  • Fed Fail! Interest Rates Higher Today Than When Quantitative Easing Started

    07/27/2013 8:21:16 AM PDT · by whitedog57 · 12 replies
    Confounded Interest ^ | 07/27/2013 | Anthony B. Sanders
    Federal Reserve Chairman Ben Bernanke may be stepping down when his term expires in January. If that happens, President Obama gets to nominate his successor. The leading candidates are Fed Vice Chair Janet Yellen and former Treasury Secretary Larry Summers. Both Yellen and Summers are from elite, liberal universities (University of California at Berkeley and Harvard University, respectively). Both are similar to Bernanke in terms of policies. Yellen is quiet and Summers is … well, Summers – quite opinionated. It is doubtful that other respected candidates like Jeff Lacker at the Richmond Fed or Thomas M. Hoenig from the Kansas...
  • Rising Sovereign Yields and Mortgage Rates – US and Japan

    06/30/2013 6:28:40 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 06/30/2013 | Anthony B. Sanders
    Since May 1st, both US Treasury yields and Japanese sovereign yields have risen, but mostly the US Treasury yields. usjapyc063013 And with the rise in sovereign yields, mortgage rates in both the US and Japan have risen. japausmortgagerates Both US and Japanese house prices were deflating since 2008, but Japan (in red) continues to deflate while the US house prices (in blue) are showing a sudden increase … again. usjaphouse In Japan, mortgages secured by housing has been declining since 1992, but started to stabilize in 2007 when US mortgage volume started to fall. mortgvoljapanuse So, how will rising mortgage...
  • A Tale Of Two CBO Forecast: 2008 Vs. 2013 (Miles And Miles Of Deficits Thanks To Obamacare)

    05/14/2013 7:04:29 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 05/14/2013 | Anthony B. Sanders
    The Congressional Budget Office (CBO) has released its budget forecast from 2013 to 2023. Their forecast? Deficits as far as they eye can see … and then some. Here is the CBO’s budget forecast from 2008. The budget forecast was actually rosy! Here is a comparison of the two forecasts: Why the change from a rosy forecast to a gloomy one? Healthcare and interest costs. Both are expected to rise until 2013 (and beyond). A recent study by Congress revealed that Obamacare (aka, the Affordable Healthcare Act) will increase healthcare insurance premiums by 100% up to 400%. “Affordable” health care?...
  • Is The Fed Going Cold Turkey After Going Wild Turkey? Housing And The Stock Market

    05/12/2013 9:13:10 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 05/12/2013 | Anthony B. Sanders
    According to the Wall Street Journal, The Fed is planning to dial back the incredible monetary stimulus. But it won’t go “cold turkey.” We can always rely on The Dallas Fed’s Richard Fisher for a pithy comment: “I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. “I think we ought to dial it back.” Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank’s easy-money policies. After all, Central Banks have lowered interest rates 511 times...
  • Is The Fed Going Cold Turkey After Going Wild Turkey? Housing And The Stock Market

    05/11/2013 8:24:11 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 05/11/2013 | Anthony B. Sanders
    According to the Wall Street Journal, The Fed is planning to dial back the incredible monetary stimulus. But it won’t go “cold turkey.” We can always rely on The Dallas Fed’s Richard Fisher for a pithy comment: “I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. “I think we ought to dial it back.” Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank’s easy-money policies. After all, Central Banks have lowered interest rates 511 times...
  • Bank Of Japan Opens The Monetary Floodgates To Induce 2% Inflation – Yield Curve Declines

    04/04/2013 6:25:20 PM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 04/04/2013 | Anthony B. Sanders
    <p>The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.</p>
  • Mortgage Spreads Rise Most Since May 2012 With More Part-time Jobs

    03/08/2013 6:12:11 PM PST · by whitedog57
    Confounded Interest ^ | 03/08/2013 | Anthony B. Sanders
    Today’s job market report showed a better gain in jobs than forecast. Even though full-time jobs declined and part-time jobs increased, the market interpreted this news as positive. But along with the “positive” jobs news, we also saw a rise in the US Treasury 10 year yield. It has generally been increasing since November 2012. Meanwhile, the Fannie Mae 30 year current coupon rose to his highest level since May of 2012. TBA performance deteriorated on the jobs news. The Bankrate 30 year fixed-rate mortgage average rose, but is still below the recent peak of 3.69% on February 20, 2012....
  • Interest Expense on the Debt Outstanding (359 Billion in FY 2012)

    01/30/2013 7:02:55 PM PST · by xzins · 14 replies
    TreasuryDirect.Gov ^ | Current | TreasuryDirect.Gov
    Interest Expense on the Debt Outstanding The Interest Expense on the Debt Outstanding includes the monthly interest for: U.S. Treasury notes and bondsForeign and domestic series certificates of indebtedness, notes and bondsSavings bondsGovernment Account Series (GAS)State and Local Government series (SLGs) and other special purpose securities. Amortized discount or premium on bills, notes and bonds is also included in the monthly interest expense.The fiscal year represents the total interest expense on the Debt Outstanding for a given fiscal year. This includes the months of October through September. View current month details (XLS Format, File size 146KB, uploaded 01/07/2013).Note: To...
  • Inflation, Interest Rates and The Upcoming Fed Meeting on 12/12

    12/08/2012 4:46:04 PM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 12/08/2012 | Anthony B. Sanders
    Over the last 12 months, interest rates around the world have come tumbling down. In terms of 10 year sovereign yields, the US fell 40.8%, Germany fell 80.4% and the UK fell 49.1%. Mortgage rates in the US have fallen as well, but not as much. According to the Mortgage Bankers Association, the 30 year fixed rate mortgage effective rate fell 16.51% over the past year. This decline is considerably less than the 40.8% decline in the 10 year Treasury yield. The Fed realizes that whether or not the US goes off the fiscal cliff or not, its citizens are...
  • The Biggest Financial Scandal In History?

    07/05/2012 2:00:45 PM PDT · by blam · 6 replies
    TEC ^ | 7-5-2012 | Michael Snyder
    The Biggest Financial Scandal In History?Michael SnyderJuly 5, 2012 We always knew that the financial markets were rigged, but this is getting ridiculous. It is now being alleged that 20 major banks have been systematically fixing global interest rates for years. Barclays has already been fined hundreds of millions of dollars for manipulating Libor (the London Inter Bank Offered Rate). But Barclays says that a whole bunch of other banks were doing this too. This is shaping up to be the biggest financial scandal in history, and criminal investigations have been launched on both sides of the Atlantic. What those...
  • Arbitrarily Low College Loan Interest Rates Harm Students, Taxpayers

    05/07/2012 5:22:03 AM PDT · by MichCapCon · 7 replies
    Capitol Confidential ^ | 5/4/2012 | Jarrett Skorup
    A government policy of subsidizing loans and encouraging people to borrow huge amounts that many won’t be able to repay has run-up $1 trillion worth of questionable debt. A growing number of experts fear that borrowers are paying more than the market can support, and some economists are warning of a bubble that could trigger a larger financial crisis. A spokesman for the President’s Consumer Financial Protection Bureau says the industry is likely “too big to fail.” Unfortunately, these are not headlines from the 2008 home mortgage meltdown. They instead describe current reports about the state of student higher education...
  • Obama's Budget: 'Interest Payments Will Exceed Defense Budget' in 2019

    04/06/2012 11:03:37 AM PDT · by tired&retired · 12 replies
    Weekly Standard ^ | April 5. 2012 | DANIEL HALPER
    The latest chart from the Senate Republican Budget Committee, pointing out that under President Obama's budget, the U.S. government will be spending more in 2019 to pay the interest on the national debt than it will be to defend America:
  • Bond Collapse Continues

    03/14/2012 9:18:13 PM PDT · by Razzz42 · 8 replies
    Trader Dan's Market Views ^ | Wednesday, March 14, 2012 | Dan Norcini
    Much to the chagrin of the Federal Reserve, bond traders are taking that FOMC statement from yesterday and taking no prisoners as they literally hammer the long bond into submission. I find it a bit ironic (to be honest I am gleeful about it) that the Fed, which continues its attempts to manipulate hedge fund behavior by herding them into the equity markets, has opened an enormous can of worms and awakened the heretofore comatose bond vigilantes as an undesirable chain reaction to their "peachy" statement about the state of the US economy. Bond traders are already moving the Fed...

    01/29/2012 10:14:07 AM PST · by Razzz42 · 12 replies ^ | January 28, 2012 | Martin Armstrong
    [T]he number one question pouring in is about the banks and their profit margin. Yes, the bottom line remains that the cost of money declines sharply for depositors while the cost of borrowing rises. Where the value of cash for three years is 0.7% to a depositor, for a fully collateralized borrower, the cost is about 4%. This is a profit margin for the banks of 571%. In other words, when the discount rate was 17% in 1981, this would have been the equivalent of a prime rate at 9707%. The profit margin at banks has NEVER been so high....
  • An Epic conflict of interest

    12/27/2011 9:55:31 AM PST · by Nachum · 10 replies
    The Daily Caller ^ | 12/27/11 | Pejman Yousefzadeh
    Meet Judy Faulkner. She is the founder and CEO of Epic Systems Corporation in Wisconsin. She is also a member of the GAO Health Information Technology Policy Committee and an advisory board member of the Journal of Healthcare Information Management. She is also politically active. In 2008, Faulkner gave at least $110,000 to political organizations and candidates, including $57,000 to the Democratic National Committee and $2,300 to then-Senator Barack Obama, according to the Center for Responsive Politics. After Obama’s election, Faulkner continued giving to the Democrats, giving at least $85,000 through the 2010 midterm election. In 2010, Faulkner gave $60,000...
  • Islamic Banking: Is It Really Kosher? (How they obey laws that prohibit the payment of interest)

    12/18/2011 1:30:43 PM PST · by SeekAndFind · 8 replies
    The American ^ | Aaron MacLean
    Muslim scholars say the Qur’an prohibits collecting interest on loans. But many banks, both global and local, have found clever ways to meet religious strictures. It’s a system that may be hypocritical, but also profitable. The coverage can be a little bit breathless: “La finance Islamique en plein boom,” Le Figaro reported in September. Yes, Islamic banking, structured along the lines that religion decrees, is in full boom. But is it really banking? And is it really kosher? Islam prohibits the payment of interest on loans, so observant Muslims require specialized alternative arrangements from their banks. Many of the largest...
  • So How Do These Sorts of Crises End?

    10/28/2011 4:58:39 PM PDT · by blam · 18 replies
    TMO ^ | 10-28-2011 | Paul Tustain
    So How Do These Sorts of Crises End? Interest-Rates / Global Debt Crisis Oct 28, 2011 - 01:38 AM By: Paul Tustain However this crisis is resolved, guess who'll be footing the bill... The World has endured these sorts of crises before. Somehow they come to an end. What happens? Sometimes, someone turns up who can prop up the collapsing debt mountain, and they make it grow higher, for a little bit longer. For a short while they are even called brilliant, but they leave a bigger problem than they started with. Eventually the thing comes crashing down and the...
  • New risk for Occupy Wall Street: less media interest

    10/25/2011 6:48:04 PM PDT · by NormsRevenge · 18 replies
    Yahoo ^ | 10/25/11 | Ben Berkowitz - Reuters
    NEW YORK (Reuters) - "Occupy Wall Street" is occupying less space in TV broadcasts, newspapers and social media as the story settles into a familiar pattern and protesters dig in for what could be a protracted fight. While the movement's reliance on Twitter and Facebook to spread its message is well established, it has also benefited from becoming a media curiosity, at times drawing legions of TV crews and reporters to its encampments. Coverage fed on itself, as more people joined in more cities. But experts say the protests are now making a natural -- yet challenging -- progression off...

    10/02/2011 8:34:31 PM PDT · by mick · 52 replies · 2+ views
    Market Watch ^ | 10/2.2011 | Staff
    Hang Seng Index leads Asia fall, diving more than 4%. Hong Kong stocks tank as financials plunge on reports that Greek budget misses austerity targets. • Japan stocks dive, with exporters tumbling • Australian stocks fall sharply on Europe jitters
  • Is Operation Twist already working?

    09/29/2011 9:35:55 AM PDT · by Free Vulcan · 15 replies
    Marketwatch ^ | 9.29.11 | Staff
    Less than 10 days after the Federal Reserve announced a reprise of the “Operation Twist“ strategy it first used half a century ago, mortgage rates are at all-time lows. Operation Twist is the Fed’s plan to squeeze the long end of the yield curve by buying long-term Treasurys instead of short-term ones — in other words, increasing demand and lowering the rates for long-term borrowing.
  • 30-year mortgage rates just barely above 4%

    09/29/2011 8:29:10 AM PDT · by Free Vulcan · 20 replies
    Marketwatch ^ | 9.29.11 | Amy Hoak
    Average rates on fixed-rate mortgages hit record lows this week, with the 30-year fixed-rate mortgage averaging 4.01%, according to Freddie Mac’s weekly survey of conforming mortgage rates. “Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities,” said Frank Nothaft, vice president and chief economist of Freddie Mac, in a statement.
  • Are European Leaders Just Insane?

    09/21/2011 11:23:03 PM PDT · by Razzz42 · 3 replies
    There is no question that what we need in the structure of government is more than just separation of church and state. We need separation of politics and economy. European leaders are so fixated on this bailout and who will pay for whom, that they just cannot comprehend it’s the structure stupid! Latin America defaulted in the 70s and had to be restructured as bondholder took a haircut. They fail to understand that nationalizing the national debts into a single Eurobond opens the door for that “restructuring” meaning that the Greek debt would be exchanged at a discount. German taxpayers...
  • AARP won’t acknowledge financial interest in Medicare copay debate

    07/24/2011 10:48:00 PM PDT · by Nachum · 12 replies
    Daily Caller ^ | 7/24/11 | Matthew Boyle
    he AARP, formerly the The American Association of Retired Persons, sent U.S. senators a letter last week asking them to oppose any increases in Medicare copayments. But the self-described pro-senior group hasn’t acknowledged that it has a financial stake in the debate’s outcome. (Snip) The AARP collects 4.95 percent of every dollar United HealthCare takes in from AARP members’ Medigap plan premiums. Not allowing Medigap plans to cover seniors’ Medicare copayment costs is a disincentive for AARP members to continue purchasing the supplemental coverage. In its letter to Congress, the AARP made no mention of any financial stake it may
  • Redistricting and the 'communities of interest' (How about "gayborhoods",armenians&black farmers?)

    07/16/2011 10:29:58 AM PDT · by NormsRevenge · 7 replies ^ | 7/16/11 | Paul Saffo
    Do you live in a "gayborhood"? Are you part of an Armenian sub-community or do you reside among black farmers and agriculturists? These and myriad other questions that most of us have never thought to ask will be answered Aug. 15, the day the Citizen's Redistricting Commission is scheduled to release its final maps. .. Among the criteria that the commission must consider when drawing its boundaries is "community of interest," a concept so vague as to remind one of Justice Potter Stewart's famous definition of pornography - "I know it when I see it." Knowing a community when one...
  • Fed to end QE2 as it signals economic worries

    06/22/2011 9:55:24 AM PDT · by Free Vulcan · 26 replies
    Marketwatch ^ | 6.22.11 | Greg Robb
    WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday said it was surprised by the recent weakness in the economy but that the recovery would pick up later this year as it kept interest rates at historic lows and said a controversial bond buying program would end as planned. The Federal Open Market Committee of the Fed said the moderate pace of growth and the weaker labor market were weaker than expected. The FEd said it expects inflation to subside as past energy prices and other commodity prices moderate. The statement came as the FOMC said it was shifting policy to...
  • Fed's Low Interest Rates Crack Retirees' Nest Eggs

    04/04/2011 10:41:23 AM PDT · by Palter · 18 replies
    WSJ ^ | 04 April 2011 | MARK WHITEHOUSE
    Forrest Yeager, a 91-year-old resident of this seaside community, had been counting on his retirement savings to last until he died. The odds are moving against him. With short-term bank CDs paying less than 1%, the World War II veteran expects his remaining $45,000 stash to yield just a few hundred dollars this year. So, he's digging deeper into his principal to supplement his $1,500 monthly income from Social Security and a small pension. "It hurts," says Mr. Yeager, who estimates his bank savings will be depleted in about six years at his current rate of withdrawal. "I don't even...
  • Treasury Market Braces for Higher Interest Rates

    04/03/2011 5:57:12 PM PDT · by Nachum · 13 replies
    Wall Street Journal ^ | 4/3/11 | Cynthia Lin
    NEW YORK—While Federal Reserve officials openly feud over the right time to begin tightening monetary policy, Treasury investors are starting to lean with the hawks. U.S. Treasurys last week endured their longest losing streak in more than two decades—nine consecutive days—and ended the worst quarter since late 2009 as U.S. government bondholders brace for the end of "quantitative easing" and a sooner-than-expected interest-rate increase. The yield on the two-year note, which is traditionally the most sensitive to shifting monetary-policy outlooks, touched 0.901% on Friday, the highest level since May 10, before trading at 0.805% late in the day.
  • Fed. May Raise Interest Rates soon

    03/26/2011 8:53:56 AM PDT · by PSYCHO-FREEP · 22 replies
    Wall Street Journal ^ | 03/25/11 | Greg Robb
    By Greg Robb WASHINGTON (MarketWatch) - The Federal Reserve should hike interest rates from current range near zero to 2.5% within a year under a plan unveiled Friday by Charles Plosser, the president of the Philadelphia Federal Reserve Bank. Plosser did not give a specific time when this exit would begin but said it would have to start in the "not-too-distant future." In a speech to economists from the monetarist school on Friday, Plosser laid out an aggressive plan where the Fed would sell $125 billion of assets for each 25 basis point increase in the funds rate. A slower...
  • CBO: Obama’s budget doesn’t reach primary balance

    03/20/2011 3:46:45 AM PDT · by Scanian · 7 replies
    The Washington Times ^ | March 18, 2011 | Stephen Dinan
    Congress‘ chief scorekeeper says President Obama’s budget never achieves primary balance, the key measure the White House said would show the country is living within its means. In a preliminary analysis the budget Mr. Obama sent to Capitol Hill last month, the Congressional Budget Office says deficits will total $9.5 trillion over the next decade and never once will it be in balance — even when subtracting interest costs. The closest the government will come to balance is in 2018, when the deficit will be $902 billion and net interest costs are projected to be $725 billion — still leaving...
  • Why the interest? Interest deduction gone by 2013?

    03/13/2011 9:11:14 AM PDT · by Bean Counter · 97 replies ^ | 3/11/2011 | Eric Martin
    In effect since 1913 and long considered an untouchable provision of the tax code, the mortgage interest deduction as we know it may not be around to celebrate its 100th birthday. The National Commission on Fiscal Responsibility and Reform is recommending that the mortgage interest deduction no longer be an itemized deduction; instead, it would be transformed into a non-refundable tax credit equivalent to 12 percent of interest paid on mortgages up to $500,000. What this would mean for taxpaying homeowners is up for debate. According to the National Association of Realtors, progress has been made recently in bringing stability...
  • U.S. in for 'twenty years of rising interest rates'

    03/01/2011 12:41:32 PM PST · by FromLori · 15 replies · 1+ views
    Investment News ^ | 2/28/2011 | Staff
    Bond market investors are showing the greatest confidence in global economic growth since credit markets crashed three years ago. Yields on debt securities are rising for a fourth month as prices fall, the longest stretch since June 2008, according to Bank of America Merrill Lynch's Global Broad Market Index, which tracks the performance of more than 19,000 securities valued at about $39 trillion. While the highest-rated debt, from U.S. Treasuries toMicrosoft Corp. debentures, are falling, the riskiest company notes are returning the most in eight years. “We've just experienced the first several months of a bear market in bonds,” said...
  • Fed’s illusion of prosperity bound to vanish

    02/14/2011 6:39:21 AM PST · by FromLori · 9 replies
    The Globe and Mail ^ | 2/8/2011 | David Rosenberg
    U.S. Federal Reserve Board chairman Ben Bernanke recently congratulated himself on CNBC for helping boost the Russell 2000 stock index by 30 per cent. The San Francisco Federal Reserve Bank just published a report that claims the second round of quantitative easing – so-called QE2 – is a success because the U.S. inflation rate is a percentage point higher than it would have been absent the Fed intervention. Investors should realize how irrational this all is. The United States is in a radical money-easing environment, in which the Fed is keeping interest rates artificially low while pumping money into the...
  • Loophole in CARD Act Results in Credit Card Rates as High as 59%

    01/31/2011 7:04:35 AM PST · by combat_boots · 40 replies
    GoBankingRates ^ | 28 Jan 2011 | Unknown
    Credit card (CC)rates could reach as high as 59.9%, according to a new CNN Money article that explored the one down side of the Credit CARD Act: Interest rates. The article revealed that CC are now hovering at near-record highs, averaging as much as 14.72%. However, for new customers with poor credit, rates could soar significantly higher because this is one area that the act did not touch on.No Limits on Rates for New Customers The Credit CARD Act, which took effect in Feb. 2010, made...changes in regard to interest rates. Here are a few: Rates can’t be increased within...
  • The "Independent" Fed Admits The Truth

    01/23/2011 7:21:37 AM PST · by FromLori · 117 replies
    The Market Ticker ^ | 1/22/2011 | Karl Denninger
    It is not independent, it is an arm of Treasury. Everything you were told was a scam and a lie - yet another time for But the new rules have slowly begun to catch the attention of market analysts. Many are at once surprised that the Fed can set its own guidelines, and also relieved that the remote but dangerous possibility that the world's most powerful central bank might need to ask the U.S. Treasury or its member banks for money is now more likely to be averted. The change essentially allows the Fed to denote losses by the various...
  • US Banks Reporting Phantom Income on $1.4 Trillion Delinquent Mortgages

    01/12/2011 4:05:05 PM PST · by FromLori · 13 replies
    Forbes ^ | 1/12/2010 | Robert Lenzner
    The giant US banks have been bailed out again from huge potential writeoffs by loosey-goosey accounting accepted by the accounting profession and the regulators. They are allowed to accrue interest on non-performing mortgages ” until the actual foreclosure takes place, which on average takes about 16 months. All the phantom interest that is not actually collected is booked as income until the actual act of foreclosure. As a resullt, many bank financial statements actually look much better than they actually are. At foreclosure all the phantom income comes off gthe books of the banks. This means that Bank of America,...
  • We Are Now Paying for the Destruction of the US Dollar and Economy… Literally

    12/22/2010 3:00:48 PM PST · by FromLori · 31 replies · 2+ views
    ZeroHedge ^ | 12/22/2010 | Phoenix Capital Research
    We just hit another milestone in insanity. I’ve written before that thanks to its QE lite and QE 2 programs, the Fed is now officially the single, largest owner of US debt. However, even that nonsense pales in comparison to the Fed’s latest accomplishment, that of owning over $1 TRILLION in US debt. That’s right, as of yesterday afternoon the Fed now owns over $1 trillion in US debt. This amounts of over 7% of the US’s total debt, own by our central bank. Now, many commentators have pointed out the various ways in which this policy has endangered the...
  • Gold Futures Drop on China Rate Concerns

    11/12/2010 5:29:28 PM PST · by EagleUSA · 30 replies
    Market Watch ^ | 11/12/2010 | Claudia Assis
    SAN FRANCISCO (MarketWatch) — Gold futures sold off Friday on concerns China will soon take steps to rein in its inflation and move to increase interest rates. Gold for December delivery /quotes/comstock/21e!f:gc\z10 (GCZ10 1,368, -35.00, -2.49%) dropped $37.80, or 2.7%, to $1,365.50 an ounce on the Comex division of the New York Mercantile Exchange. That was gold’s largest one-day drop since early July. The contract earlier traded as low as $1,359.30 an ounce, according to FactSet Research. Gold had lost more than $30 overnight, but seemed to have recovered somewhat at the start of floor trading. Nervous investors, however, pulled...
  • Zee News Exclusive: Nuke equipment stolen from Pak -(dubious source)

    09/21/2010 4:53:04 PM PDT · by Flavius · 1 replies
    zeenews ^ | September 21, 2010, 21:53 | Zeenews Bureau
    Islamabad/New Delhi: In a shocking revelation, sources have told Zee News that a Radioactive Gamma Projectile has gone missing from Ghotki in Sindh province of Pakistan. Sources have also revealed that the equipment has been missing since last three months. ISI is investigating into the matter but no headway has been made in the case so far. Initially, the matter was being investigated by the local police but looking at the sensitivity of the matter, the Crisis Management Cell of Pakistan handed over this case to intelligence agency. Radioactive Gamma Projectile is a device which is used to store ‘Dirty...
  • Jewish Banking

    09/07/2010 7:55:57 AM PDT · by Zionist Conspirator · 15 replies · 1+ views
    Last week it was announced that Israel's Bank Hapoalim surprised all the analysts and posted a quarterly net profit of 513 million shekels. In other words, half a billion shekels plus 13 million shekels net profit for three months. I have nothing against Bank Hapoalim. On the contrary, their commissions are cheaper than the other banks and I am pleased that they are making a lot of money. Everything written in this article pertains to all the large banks. Something bothered me when I listened to the report of Bank Hapoalim's profits. The bank's economists explained that the surprising increase...
  • For recovery, raise rates

    08/15/2010 6:46:17 PM PDT · by Graybeard58 · 45 replies · 1+ views
    Waterbury Republican-American ^ | August 15, 2010 | Editorial
    Even before there was an Obama administration, there was the hue and cry for the government to "do something" to stimulate the economy reeling from the Chris Dodd Bear Market and Recession. But there also were voices warning that stimulating the economy the way Barack Obama and congressional Democrats intended — massive government borrowing to fund massive spending on government employees and infrastructure; government interference in commerce; microscopic interest rates — was failure waiting to happen. Those voices recalled how Japan stimulated its economy 10 times after the credit bubble burst in 1990. Each time, Japan ramped up government spending...
  • The Future Of The Global Public Debt Explosion

    05/02/2010 6:59:22 AM PDT · by TigerLikesRooster · 12 replies · 725+ views
    Business Insider ^ | 05/02/10 | John Mauldin
    The Future Of The Global Public Debt Explosion John Mauldin | May. 2, 2010, 8:48 AM | 462 | comment 5 Everyone and their brother intuitively knows that the current government fiscal deficits in the developed world are unsustainable. They have to be brought under control, but that requires some short-term pain. Today we look at a rather remarkable piece of research from the Bank of International Settlements (BIS) on what the fiscal crisis may morph into in the future, how much pain will be needed, and what will happen if various countries stay on their present courses. Some countries...