Keyword: borrowing

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  • Budget Could Delay Local Highway Projects

    03/25/2015 6:44:17 AM PDT · by Tolerance Sucks Rocks · 23 replies
    Urban Milwaukee ^ | March 16, 2015 | Steven Walters
    It seemed to be a classic case of “firemen first,” a theory first put forth in 1976 by legendary Washington, D.C., journalist Charles Peters. Any bureaucrat, when asked to list what services or jobs would be cut because of a looming budget crisis, identifies the most painful losses in public services – firemen, police officers, EMTs, workers who fill potholes, etc. Bureaucrats use it to try and pressure elected officials, afraid of voter backlash, to soften the budget cuts. It played out in the Capitol on March 3, when state Transportation Secretary Mark Gottlieb was asked what major state highways...
  • California couple struggling after being forced to pay deceased daughter’s student loans

    08/06/2014 6:47:14 AM PDT · by Innovative · 90 replies
    FoxNews ^ | Agu 6, 2014 | Fox News
    Lisa Mason had taken out close to $100,000 in student loans in order to pay for nursing school, and was making payments on the debt when she died. Steve Mason said he and his wife, who had co-signed the loans, were contacted immediately after his daughter’s death and were told they must start making payments. “We knew if she didn’t pay her debt we would be responsible by co-signing, but we didn’t know that if she died the debt would fall to us,” he said. Mason said his daughter’s debt has ballooned to $200,000 and the payments exceed $2,000 a...
  • Countdown: US Hits Debt Ceiling in 84 Days

    11/16/2013 4:15:22 AM PST · by stevie_d_64 · 22 replies
    Breitbart ^ | November 15, 2013 | Mike Flynn
    Twelve weeks from today, the US government will hit its borrowing limit. When Congress lifted the debt ceiling last month, for the first time ever, it pegged the increase to a specific date, rather than a dollar amount. The current borrowing authority expires in just 84 days, on February 7th.
  • What a ‘Shutdown’ Means: $63B Spent, $26B Taxed; $1.6B Borrowed; $1B Paid in Salaries—in Just 2 Days

    10/04/2013 10:48:57 AM PDT · by Olog-hai · 6 replies
    Cybercast News Service ^ | October 4, 2013 - 11:55 AM | Terence P. Jeffrey
    In general terms, politicians and the press may be referring to what has been happening in Washington, D.C., over the past few days as a government “shutdown” or a “partial government shutdown,” but the actual accounting sheets of the U.S. Treasury show that massive amounts of taxed and borrowed money were flowing in and out of the government during the first two days of fiscal 2014. … To put things in perspective, in the first two days of fiscal 2013 (Oct. 1-Oct. 2, 2012), when there was not a “shutdown,” the federal government spent $124.409 billion, collected $29.057 billion in...
  • US borrowing authority to be exhausted by Oct. 17

    09/25/2013 6:21:34 PM PDT · by Olog-hai · 13 replies
    Associated Press ^ | Sep 25, 2013 3:19 PM EDT | Andrew Taylor
    Treasury Secretary Jacob Lew said Wednesday the government will have exhausted its borrowing authority by Oct. 17, leaving the United States just $30 billion cash on hand to pay its bills. That’s a slightly worse financial position than Treasury predicted last month and adds to the pressure on Congress to increase the government’s borrowing cap soon to avert a first-ever U.S. default on its obligations. In a letter to top congressional leaders, Lew warned that a repeat of the debt brinksmanship of 2011 could inflict great harm on the economy and that “if the government should ultimately become unable to...
  • By the way: Total student loan debt now topping one trillion dollars

    04/12/2013 12:17:44 PM PDT · by SeekAndFind · 17 replies
    Hotair ^ | 04/12/2013 | Erika Johnsen
    It's a rough job market for anyone looking for work as we continue to just barely break stagnation levels in the Slowest Recovery Ever, but the picture is particularly bleak for the fresh-faced youths looking start careers. According to a new economic report, the situation is going to be “extremely difficult” for the crop of 2013 college graduates: Unemployment remains high for young college grads. For those who will find jobs, many will probably have to settle for low-level positions, the Economic Policy Institute said Wednesday.The unemployment rate for recent college grads between the ages of 21 to 24 has...
  • 'We're Getting Away With It' Does Not Excuse Federal Borrowing To Infinity

    03/07/2013 6:55:32 AM PST · by SeekAndFind · 19 replies
    Forbes ^ | 03/06/2013 | Daniel Shuchman
    You know the unpleasant facts. The federal government has been and will likely continue to run an annual deficit of $1 trillion indefinitely. It borrows or prints approximately 40% of every dollar spent. federal debt amounts to over $16 trillion. The debt/GDP ratio ranges between 70% and 100% (depending on the methodology you use) – historically dangerous territory for a government. Future entitlement obligations amount to tens of trillions and will overtake the budget in future years unless something significant changes. During the election campaign, the debate centered on whether our fiscal course should be stabilized with an emphasis on...
  • America’s Dreadful Debt Legacy

    02/15/2013 3:13:36 AM PST · by Kaslin · 5 replies
    Townhall.com ^ | February 15, 2013 | David Spady
    Americans live in a consumer culture. We like to buy things. When we can’t afford to purchase something we really want, we turn to credit cards and loans, even though we end up paying more due to interest payments. Over half the population paid interest on credit cards in the past year. “Buy now – pay later”. This mindset has resulted in the plague of personal debt many families struggling with. Unfortunately the “buy now – pay later” mentality is not limited to the individual consumer, Americans are also inclined to incur debt to fund government projects we can’t afford....
  • Boehner: “Zero” Chance Obama Would’ve Given Bush Unlimited Borrowing Power

    12/13/2012 4:01:00 PM PST · by Olog-hai · 7 replies
    Cybercast News Service ^ | December 13, 2012 | Elizabeth Harrington
    House Speaker John Boehner (R-Ohio) said there was “zero” chance that Senate Majority Leader Harry Reid (D-Nev.) and then-Sen. Barack Obama would have supported giving President George W. Bush the power to unilaterally raise the debt ceiling, as they propose giving the chief executive today. … “Do you think that Senator Reid or then-Senator Obama would have ever given to President George W. Bush the unlimited ability to raise the debt limit?” Boehner said. “They’re talking about doing it now,” a reporter replied. “I know they’re talking about doing it now,” Boehner said, jokingly. “Do you think there’s any chance...
  • The Deal the GOP Congress members should offer the president

    11/07/2012 3:11:00 PM PST · by JLS · 14 replies
    JLS | 7 November 2012 | JLS
    The GOP needs to use their one big chit in the tax negotiation. They need to demand that included in this deal is increasing the national debt limit. In return for increasing the national debt limit they need to get something tangible. Something like no tax increase. They can not accept illusions of spending cuts that will never happen. They could link the debt ceiling to the current tax code and everytime the debt limit comes up, the tax code would too.
  • Conservatives undermining our economic recovery ... Fiscal retrenchment is a drag on growth

    07/27/2012 1:58:26 PM PDT · by Zakeet · 19 replies
    Wall Street Journal Market Watch ^ | July 27, 2012 | Adam S. Hersh
    Today’s weak economic growth numbers were as predictable as they are disheartening — and the blame lies squarely with those who opposed the president’s American Jobs Act nearly a year ago, and have in fact opposed an array of sensible economic policies to expand public investments that create jobs and economic growth ever since President Barack Obama took office [Snip] Economists have known at least since last summer’s debt ceiling standoff in Congress that an economic slowdown was a high probability outcome if policy makers failed to reverse steep retrenchments in public investments that create jobs and strengthen growth. The...
  • Quite Possibly The Dumbest Thing I’ve Heard An Economist Say

    07/17/2012 1:12:56 PM PDT · by Zakeet · 19 replies
    Zero Hedge ^ | July 17, 2012 | Simon Black
    In the mid-1800s, a cousin of Charles Darwin by the name of Francis Galton wrote a series of works expanding on an old idea of selective breeding in human beings. Galton’s theory became known as eugenics. At its core, eugenics was underpinned by an assumption that talent and genius were hereditary traits, and that deliberate breeding could improve the human race. Within decades, intellectuals were spending their entire careers studying these ideas, quickly spawning a number of different fields dedicated to ‘racial sciences.’ Scholars began closely examining racial differences and building volumes of statistics on everything ranging from intelligence to...
  • O’Malley signs hundreds of bills that will tint Maryland a deeper shade of blue

    05/23/2012 7:51:09 PM PDT · by Tolerance Sucks Rocks · 17 replies
    The Washington Post ^ | May 22, 2012 | Aaron C. Davis
    Maryland Gov. Martin O’Malley signed into law a package of tax increases Tuesday targeting six-figure earners, tobacco users and companies engaged in real estate transactions to cover record spending on education. In a two-hour ceremony, it was easily the most recognizable measure O’Malley (D) signed but hardly the most popular. Rather, union members, minorities and interest groups crowded the State House to celebrate more than 200 lesser-known and often narrowly tailored bills. They passed the General Assembly with little fanfare but, taken together, will color the state’s social and political identity a slightly deeper shade of blue. The bills included...
  • Borrowing Your Way Out Of Debt And Other Normal Abnormalities

    02/20/2012 2:05:08 PM PST · by blam · 13 replies
    The Daily Reckoning ^ | 2-20-2012 | Bill Bonner
    Borrowing Your Way Out Of Debt And Other Normal Abnormalities By Bill Bonner 02/20/12 Buenos Aires, Argentina – Dow up 45 points on Friday. The 10-year T-note right on the 2% yield mark. Almost all the news is good. It looks like recovery is finally here. Or, are we just getting used to a punky economy…where even a little improvement looks like a boom? As far as we know, the US economy is still in a Great Correction…with plenty more correction ahead. But people get used to correction…and used to the feds pumping in cash and credit to keep things...
  • Senate Approves $500 Billion Increase in Borrowing Authority.(national debt $15.19 Trillion)

    09/09/2011 1:03:49 PM PDT · by rawhide · 29 replies
    Wall Street Journel ^ | September 8, 2011 | By Corey Boles
    The U.S. Senate, in an unusual procedure, cleared the way Thursday for the U.S. to lift its borrowing authority by $500 billion to $15.19 trillion, enough to keep the support federal government borrowing through late January or early February. The action came under an unusual legislative procedure spelled out under the August agreement to raise the U.S. debt ceiling and avoid a U.S. credit default. In a 52-45 vote, the Senate blocked an attempt by Republicans to slow down the process that will result in the $500 billion debt-ceiling increase. The increase stems from a deal between Congress and the...
  • The History Of American Debt (And What Has Changed)

    08/09/2011 8:26:21 AM PDT · by orthodoxyordeath · 7 replies
    The Band Of Patriots ^ | August 8th, 2011 | Matthew Monos
    If you've been watching the news today, you know the stock markets are plunging. The markets have only been open about four hours, but the DOW has already plunged over 300 points, update, make that over 600 points.. Everyone knows this is because Standard and Poor downgraded the credit rating of the USA from AAA to AA+. Add in the fact that they downgraded the credit of institutions such as Freddie Mac and Fannie Mae for being too reliant on government (shocker!), are mulling downgrades of Britain and France, and said they might downgrade the USA again in a few...
  • Valerie Jarrett: Obama 'getting absolutely no sleep' because of debt crisis

    07/29/2011 5:46:55 AM PDT · by Zakeet · 84 replies
    Washington Examiner ^ | July 29, 2011 | Charlie Spiering
    The White House is pushing back against the growing narrative that Obama is "sitting on the sidelines," as reported by the New York Times yesterday, and letting Congress do all the work. As John Boehner spent the night trying to wrestle members into place to support his debt ceiling deal, Valerie Jarret reminded reporters yesterday that it was President Obama who was losing sleep over the issue. "He's getting absolutely no sleep. He's working tirelessly, meeting with his economic team, doing a lot of outreach, exploring all kinds of possibilities for compromise," Jarrett said. Chief of Staff William Daley...
  • Amy Winehouse Economics

    07/27/2011 6:52:27 PM PDT · by stolinsky · 4 replies
    www.stolinsky.com ^ | 07-28-11 | stolinsky
      Amy Winehouse Economics David C. Stolinsky July 28, 2011 Amy Winehouse’s mother Janis stated that she believed it was “only a matter of time” before her daughter died.− News item Let me apologize in advance for using the name of a recently deceased young woman as a descriptor of our economic problems. But I mean no disrespect for Amy Winehouse. On the contrary, my disrespect is aimed at those responsible for wrecking our economic system to the point that the only options remaining are rehab or premature death. Beautiful, talented, wealthy Amy Winehouse was found dead at age...
  • Banks Pay Back TARP Funds by. . .Borrowing From Treasury

    07/24/2011 11:11:24 AM PDT · by EBH · 13 replies
    Yahoo/Finance ^ | 7/20/11 | Daniel Gross
    But sometimes there's less than meets the eye. Generally, banks that repaid CPP funds did so with cash raised from earnings, or by raising new outside capital. In finance and banking you always have to read the fine print. And if you go back to the report, you'll notice that the fine print accompanying the entries for each of the above exits makes reference either to Footnote 49 or Footnote 50. Footnote 49 reads: "Repayment pursuant to Title VII, Section 7001(g) of the American Recovery and Reinvestment Act of 2009 using proceeds received in connection with the institution's participation in...
  • Should The Fed Burn A Pile Of Treasury Securities?

    07/10/2011 5:52:40 PM PDT · by Tolerance Sucks Rocks · 12 replies
    Nolan Chart ^ | July 9, 2011 | Gene DeNardo
    Ron Paul's recent idea on how to ease the national debt is hardly original but none the less worthy of consideration. He has proposed what leftist critics of the status quo monetary system have been proposing for decades: that money printing should be used to fund the government. To give Ron due credit, he is not proposing exactly that. More precisely, he is proposing that the Fed should tear up a bundle of its Treasury securities, which would lower our overall debt total bringing us below the current debt ceiling. Still, the mechanics are identical, if not in reverse order....
  • Presidential Advice on Coping with Hard Times

    06/13/2011 11:08:03 AM PDT · by John Semmens · 5 replies
    A Semi-News/Semi-Satire from AzConservative ^ | 11 June 2011 | John Semmens
    Half way into a third year of economic recession during his term, President Obama offered his advice to families suffering from the effects of high unemployment and home mortgage defaults. “First, don’t spend all your money,” Obama said. “As hard up as you may be, your finances can’t be in as bad a shape as the government’s. Chances are the government is going to need more of your money. What you’ve saved could be crucial to keeping government up and running.” “Second, there’s a difference between saving and investing,” the President went on. “Saving just means you haven’t spent the...
  • 30% Of People With A 401(k) Have Taken Out A Loan Against It: New All Time Record

    06/10/2011 12:31:19 AM PDT · by Nachum · 25 replies
    zero hedge ^ | 6/7/11 | Tyler Durden
    About a year ago Zero Hedge posted an article titled: "Record Number Of Americans Using Retirement Funds As Source Of Immediate Cash" after a report by Fidelity uncovered that "plan participants with loans outstanding against their 401(k) accounts had reached 22 percent versus 20 percent a year earlier." It is now time to revisit this very important topic because if recent press reports are true, last year's record number has just increased by another 50%. "On "The Early Show" Thursday, financial journalist and Newsweek columnist Joanne Lipman said, "Right now we have 30 percent of people who have 401(k)s have...
  • Grow up, Secretary Geithner

    05/19/2011 5:44:21 AM PDT · by Scanian · 4 replies
    The American Thinker ^ | May 19, 2011 | Greg Richards
    Yesterday, Tuesday, Treasury Secretary Timothy Geithner gave a speech in New York on the debt default crisis, which tried to shift blame for the nation's finances away from the Administration (reported by USA Today: "If Republicans try to impose that plan on this country as a condition for raising the debt limit, then they will own the responsibility for the first default in our history, with devastating damage to the nation." Talk about chutzpah! First, as Treasury Secretary, Geithner is the Administration official most responsible for monitoring the spending as well as the revenue-raising of the federal government. It is...
  • US Treasury Tells Lawmakers It Needs $2 Trillion In Debt Capacity (to fund the US to end of 2011)

    05/04/2011 10:16:18 AM PDT · by Zakeet · 14 replies
    Zero Hedge ^ | May 4, 2011 | Tyler Durden
    Reuters reports that the US Treasury has informed lawmakers it needs a $2 trillion debt limit increase to operate... until the end of 2012. Better stated, this is 112% of US GDP (which will soon be declining). This is precisely as Zero Hedge speculated. We hope PIMCO will be swayed soon enough to buy all this extra debt about to start coming down Geithner's conveyor chute. But yes, the Fed will most certainly not be needed to monetize this extra debt: Japan, Europe and Libya have it covered. That said, we don't know if Libyan rebels will have the capacity...
  • Boehner Gave Up Too Much

    04/11/2011 3:38:52 AM PDT · by Scanian · 36 replies
    The American Thinker Blog ^ | April 10, 2011 | Lee Cary
    I believe Boehner gave up too much. A TV pundit said that the Dems and Repubs "split the difference." Nonsense. In a former occupation, I designed and taught a business negotiating skills class for the management training company I worked for then, and later wrote and sold a better class as an independent. Back then, in a Neanderthalish zero sum game, if I "drop anchor" at 100, and you drop at zero, and the final agreement is 38.5, we obviously didn't "split the difference." I lost. Particularly considering that, as you know, the federal debt jumped $54B while they were...
  • Obamanomics 101: Borrowing to pay debt isn’t debt-debt (Learning from Whoopi Goldberg)

    02/17/2011 7:11:59 AM PST · by SeekAndFind · 13 replies
    Hotair ^ | 02/17/2011 | Ed Morrissey
    When does borrowing not create debt? Only in two instances: when one has no intention of paying it back, and when Barack Obama does it. Jake Tapper asked new White House press secretary Jay Carney exactly how borrowing over six hundred billion dollars in the best year of Obama’s ten-year budget projections (using the rosiest of all possible economic assumptions) somehow qualifies as (a) balanced spending and (b) not adding to the national debt. Carney explains how that works: TAPPER: If I borrow money from you — to pay — to pay off the interest for - CARNEY: You may...
  • Muni Bonds: The Next New Crisis?

    12/20/2010 12:55:51 PM PST · by george76 · 19 replies · 2+ views
    Yahoo! Finance ^ | Dec 20, 2010 | Aaron Task
    Budget shortfalls and subsequent muni bond defaults "could derail the recovery, cost a million public employees their jobs and require another big bailout package that no one in Washington wants to talk about," ... Gov. Christie does an excellent job of framing this discussion by pointing out the huge disconnect between the benefits of public sector employees vs. their private-sector counterparts. "I think the general public thinks, 'I can't believe anybody gets a pension anymore. I've got a 401(k). It got killed in the stock market. I don't know what I'm gonna do for my retirement. I can't believe people...
  • LIST of states borrowing from the Federal Government to cover unemployment benefits

    12/20/2010 9:37:26 AM PST · by dragnet2 · 52 replies · 1+ views
    http://www.ncsl.org/?tabid=13294 ^ | Friday, 5/21/2010 | NCSL
    Unemployment Insurance: State Trust Fund LoansUpdated Dec. 15, 2010 The Federal Unemployment Account (FUA) provides for a loan fund for state unemployment programs to ensure a continued flow of benefits during times of economic downturn.  According to the U.S. Department of Labor, Employment and Training Administration, 30 states and the U.S. Virgin Islands are currently borrowing to cover unemployment benefits.  Four states, Maryland, New Hampshire, South Dakota, and Tennessee, have repaid their loans in full.     As of December 13, 2010, the most recent balances of outstanding state loans from the FUA are: State Loan Balanceas of Dec. 13, 2010 Began Borrowing Alabama $283,001,164.19 September, 2009 Arizona $212,184,077.48...
  • Number of the Week: $10.2 Trillion in Global Borrowing

    $10.2 trillion: The amount of money advanced-nation governments will need to borrow in 2011 As the debts of advanced countries rise to levels not seen since the aftermath of World War II, it’s hard to know how much is too much. But it’s easy to see that the risk of serious financial trouble is growing. Next year, fifteen major developed-country governments, including the U.S., Japan, the U.K., Spain and Greece, will have to raise some $10.2 trillion to repay maturing bonds and finance their budget deficits, according to estimates from the International Monetary Fund. That’s up 7% from this year,...
  • Should You Invest In Build America Bonds?

    09/13/2010 4:41:45 PM PDT · by Broker · 8 replies
    Financial Edge Investopedia.com ^ | Posted: July 6, 2010 2:29PM | Jean Folger
    A bond is a contract to repay borrowed money within a specified term and with fixed-interval interest payments. Build America Bonds (BABs) were created under the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, with the intention of providing a low cost means of borrowing for state, municipality and county agencies. Build America Bonds are taxable fixed-income securities that help these agencies finance capital expenditures through subsidized borrowing. (snip ) The Pros • 35% subsidy/tax credit • Interest rates comparable to corporate bonds - this means the bonds are typically high-yielding • Allow municipalities...
  • Fed May Introduce Negative Interest Rates

    08/27/2010 10:42:08 PM PDT · by John Semmens · 61 replies
    A Semi-News/Semi-Satire from AzConservative ^ | 27 August 2010 | John Semmens
    Frustrated by the reluctance of consumers to open their wallets and spend the country back into prosperity, the Federal Reserve Bank is said to be considering imposing “negative interest rates.” Under this concept, savings depositors would be charged interest while borrowers would be paid interest. Federal Reserve Chairman Ben Bernanke explained, “We’re at our wits end on this recession thing. Despite our attempts to float the economy on a wave of newly created money too many people are simply hoarding their cash. Granted, people are fearful of losing their jobs and want to preserve cash to pay for necessities in...
  • CalPERS loan sought by Schwarzenegger likely 'very expensive,' analysts say

    08/21/2010 9:37:17 AM PDT · by SmithL · 26 replies
    Sacramento Bee ^ | 8/21/10 | Dale Kasler
    For the past year, Gov. Arnold Schwarzenegger has warned that CalPERS was heading over a cliff and pawning off its financial problems on future generations. Now he wants to borrow $2 billion from the California Public Employees' Retirement System to help fix this year's state budget. The governor's plan represents an apparent about-face – and raises questions about the long-term costs. The last time the state borrowed from CalPERS, it had to pay the pension fund $400 million in interest. More borrowing would surely bring more interest expense, experts said Friday. CalPERS is obliged to "treat the loan as they...
  • Here's Why The Government Can Keep Borrowing Forever

    08/03/2010 1:34:17 PM PDT · by blam · 8 replies · 7+ views
    The Business Insider ^ | 8-3-2010 | Gregory White
    <p>Right now, one of the core questions perplexing markets is how U.S. treasury rates on long term debt can remain so low, even though the U.S. government continues to add more and more debt to the supply.</p> <p>The simple answer is that right now, the demand for that debt continues to outpace supply, reducing interest rates.</p>
  • More Deflation: Consumer Credit Drops Sharply In May

    07/08/2010 2:44:18 PM PDT · by blam · 6 replies
    The Business Insider ^ | 7-8-2010 | Joe Weisenthal
    More Deflation: Consumer Credit Drops Sharply In May Joe Weisenthal Jul. 8, 2010, 3:31 PM The Federal Reserve said Thursday that borrowing dropped by $9.1 billion in May. It also said borrowing declined by $14.9 billion in April, revising an initial estimate that showed a gain of $995 million for the month. In May, consumers borrowed less on their credit cards and took out fewer auto loans. Credit card borrowing has fallen for 20 straight months.Consumer borrowing has fallen in 15 of the past 16 months as households have struggled with uncertain job prospects and battered finances following a deep...
  • Nearly Bankrupt Illinois Forced To Pay Through The Nose To Borrow Money

    06/18/2010 7:25:33 AM PDT · by blam · 27 replies · 632+ views
    The Business Insider ^ | 6-18-2010 | Joe Weisenthal
    Nearly Bankrupt Illinois Forced To Pay Through The Nose To Borrow Money Joe Weisenthal Jun. 18, 2010, 9:02 AM Image: myonlinemaps.com The market has lost confidence in Illinois, a state which has now adopted its own IOU system. Bloomberg: Illinois sold $300 million of Build America Bonds at a yield premium over Treasuries about 40 percent higher than two months ago after lawmakers failed to close a $13 billion budget deficit for the year starting July 1. The fifth most-populous U.S. state sold the taxable debt maturing in 2035 priced to yield 7.1 percent yesterday, or 297 basis points over...
  • Voters fed up with spendthrift Obama

    05/14/2010 5:24:35 AM PDT · by KeyLargo · 42 replies · 1,979+ views
    Chicago Sun-Times ^ | May 14, 2010 | Steve Huntley
    Voters fed up with spendthrift Obama May 14, 2010 STEVE HUNTLEY shuntley.cst@gmail.com Passage of the massive health-care overhaul was supposed to repair the sagging political fortunes of President Obama, Congress and the Democrats. It didn't. That's not just because of the unpopularity of ObamaCare, though certainly it's a factor. No, there's something more fundamental at work. In 2008, America awoke from a binge of profligate borrowing, notably in housing, with a pounding economic hangover that brought the country to the brink of depression. The lesson was clear: We have to live within our means. This is a lesson that Washington...
  • Why Young People Should Buy Stocks on Margin

    04/17/2010 7:32:06 AM PDT · by mlocher · 34 replies · 1,067+ views
    Time ^ | April 16, 2010 | Barbara Kiviat
    We have just survived the worst debt-fueled binge since the Roaring '20s. Now two professors at Yale University are suggesting we introduce leverage into a new realm of our lives — our retirement portfolios. TIME's Barbara Kiviat asked economists Ian Ayres and Barry Nalebuff to explain themselves and the strategy they lay out in their new book Lifecycle Investing. You are advocating that people in their 20s and early 30s take all their retirement savings and buy stocks on margin. Can you explain why that's not as crazy as it sounds? Ayres: It's not as crazy as it sounds because...
  • Obama Pays More Than Buffett as U.S. Risks AAA Rating (Link Only)

    03/22/2010 8:40:46 AM PDT · by Cheap_Hessian · 3 replies · 338+ views
    Bloomberg | March 22, 2010 | Daniel Kruger and Bryan Keogh
    Link to the Bloomberg article
  • Treasury Dept. projects $392B in 1Q borrowing

    02/01/2010 1:04:15 PM PST · by Cheap_Hessian · 1 replies · 156+ views
    Yahoo News (AP) ^ | February 1, 2010 | Christopher S. Rugaber
    WASHINGTON – The Treasury Department says it expects to borrow $392 billion in the current quarter to finance the largest annual budget deficit in history. The projection is $86 billion lower than an estimate the department issued in November, when it expected to borrow $478 billion. The improvement is largely due to higher-than-expected repayments of about $90 billion in bailout funds by large banks. The department also says it borrowed $260 billion in last year's fourth quarter, below an earlier estimate of $276 billion. Treasury expects to borrow $268 billion in the second quarter of this year. The projections come...
  • Schwarzenegger defends $11.1 billion in borrowing

    11/13/2009 9:35:20 AM PST · by NormsRevenge · 7 replies · 351+ views
    Sac Bee ^ | 11/13/09 | Kevin Yamamura
    Gov. Arnold Schwarzenegger on Thursday defended $11.1 billion in new borrowing as a critical investment in the state's water future while at the same time insisting California must cut its way toward a balanced budget in the short term. In an interview with The Bee's editorial board, the Republican governor also took aim at the state's prison employees and advocated for a constitutional change allowing California to rely more on private workers. After reaching a deal last week with state lawmakers to bolster California's water infrastructure, Schwarzenegger is trying to build popular support for the plan, knowing voters will have...
  • When the Borrowers Stop Borrowing

    11/09/2009 2:38:51 PM PST · by blam · 9 replies · 1,196+ views
    The Daily Reckoning ^ | 11-09-2009 | Bill Bonner
    When the Borrowers Stop Borrowing By Bill Bonner 11/09/09 Beunos Aires, Argentina – The Dow moved up 17 points on Friday, leaving it above the 10,000 mark. Gold rose too – it is at a new record high, only $5 below $1,100.(The DJIA closed today up 203 points) According to the news reports, the US economy is ‘growing’ again. Yes, that’s the official storyline. But wait, what kind of growth is this? David Rosenberg: “All we can say is that if the overwhelming consensus is correct that the recession is behind us, then what we have on our hands is...
  • Double-dip recession? (With this humongous borrowing, the dire prospects are rising)

    08/11/2009 10:57:12 AM PDT · by SeekAndFind · 13 replies · 774+ views
    Washington Times ^ | 8/11/2009 | Richard W. Rahn
    We are likely to have a double-dip recession, and this is why. Your Uncle Sam has been having a hard time because he spends more than he makes. He engages in much unproductive behavior and wastes a lot of money on things that he doesn't really need. He is easily influenced by his irresponsible children, Nancy and Harry, whose mantra is: "Spend, Sam, spend." Sam is also sloppy with his finances. His record keeping is poor, and he is frequently ripped off by people who claim to be his friends. Recently, Sam experienced a big drop in his income, because...
  • Governor revokes borrowing ability [CA]

    06/12/2009 3:03:04 PM PDT · by SmithL · 3 replies · 415+ views
    Sacramento Bee ^ | 6/12/9 | Steve Wiegand
    Saying that borrowing money without a balanced budget in place "would be irresponsible," Gov. Arnold Schwarzenegger revoked a financial mechanism Thursday that he agreed to last year for seeking emergency loans. In a letter to state Controller John Chiang, the governor said he was rescinding his authorization for a General Cash Revolving Fund, which he had approved in April 2008. The fund is legally necessary to enable the controller to borrow money on the commercial credit market through the issuance of Registered Anticipation Warrants, or RAWs. The warrants usually carry steep interest rates and up-front fees, but would give the...
  • The Federal Reserve Loses Money On Every Investment, Will Have To Make It Up On Volume

    06/11/2009 6:54:21 AM PDT · by FromLori · 10 replies · 407+ views
    Wall St 24/7 ^ | 6/11/09
    The Federal Reserve issued the first installment of what it calls its ongoing series of monthly reports that provides new information on its credit and liquidity programs. Most of the June report was dry, but two things stood out. The first was the extent to which the Fed balance sheet is made up of junk, paper that is rated BB+ or lower. The second and more obvious fact was that the agency wrote-down $5.25 billion in the first quarter. Most of the losses came from a re-valuation of securities acquired as part of the restructurings of Bear Stearns and AIG....
  • Shocking Obama Spending Digging America Into Great Depression

    04/29/2009 1:51:11 PM PDT · by Michael Eden · 11 replies · 852+ views
    Start Thinking Right ^ | April 29, 2009 | Michael Eden
    We are beginning to learn that $12.8 trillion doesn't last very long when it is being spent by corrupt politicians and idiot bureaucrats. It doesn't seem to matter how much Obama has already spent or committed; he just has to keep spending more and more and more. WASHINGTON – The Treasury Department said Monday it will need to borrow $361 billion in the current April-June quarter, a record amount for that period. It's the third straight quarter the government's borrowing needs have set records for those periods. Treasury also estimated it will need to borrow $515 billion in the July-September...
  • CA: Borrowing $23.3 billion for state budget won't be easy, analyst says (DOH Alert!)

    01/09/2009 9:06:58 AM PST · by NormsRevenge · 11 replies · 534+ views
    LA Times ^ | 1/9/09 | Jordan Rau and Patrick McGreevy
    Reporting from Sacramento -- California may find it hard to borrow the $23.3 billion that Gov. Arnold Schwarzenegger has proposed to ease the state's financial crisis, the Legislature's nonpartisan analyst said Thursday. The spending plan Schwarzenegger outlined Dec. 31 for the next 18 months relies on borrowing $5 billion against future state lottery earnings, $7 billion in new infrastructure bonds and $11.3 billion in short-term borrowing so that the state does not run out of money. Schwarzenegger has depicted his proposal, which he intends to formally submit to the Legislature today, as the only financially responsible solution to a budget...
  • Schwarzenegger's latest budget plan: Deep cuts, large tax hikes, more borrowing

    01/01/2009 10:26:37 AM PST · by NormsRevenge · 33 replies · 880+ views
    Mercury News ^ | 1/1/09 | Mike Zapler
    SACRAMENTO — Gov. Arnold Schwarzenegger's staff Wednesday released his most detailed plan yet to tackle the state's staggering budget deficit, calling for deep cuts to state services, hefty tax increases and a large new round of borrowing to close a projected $41.6 billion shortfall through mid-2010. While little of the proposal was new, it included some striking elements, such as cutting billions of dollars from public school funding and slashing the deduction state taxpayers can claim for their dependents. The plan also arrived a day after the state controller warned tax refunds might have to be paid with IOUs in...
  • Creative borrowing catches up with California cities

    12/31/2008 8:24:27 AM PST · by BGHater · 16 replies · 958+ views
    LA Times ^ | 31 Dec 2008 | William Heisel
    <p>Financing schemes that sidestepped voter approval have put local governments deeper in hock.</p> <p>Oxnard was in a bind, facing a $150-million bill to fix cracking and crumbling streets and no way to pay for the work without cutting other services.</p>
  • In Hard Times, Houses of God Turn to Chapter 11 in Book of Bankruptcy

    12/23/2008 10:26:35 AM PST · by BGHater · 10 replies · 801+ views
    WSJ ^ | 23 Dec 2008 | SUZANNE SATALINE
    Strapped Churches Can't Pay the Mortgage After Borrowing Binge; St. Andrew at Auction The auctioneer told the small crowd huddled outside the Talbot County Courthouse that the property would be sold "as is" -- rectory, bell tower, oak pews and rose-tinted stained glass windows included. "Who gives $700,000, 700, 700?" he called out. One man, a representative for a local bank, raised his finger. The auctioneer tried in vain to nudge the price up. "Sold!" he cried. St. Andrew Anglican Church had just been bought by the bank that had started foreclosure proceedings against it. "It's probably good for my...
  • Hedge funds gain access to $200bn Fed aid

    12/20/2008 5:15:56 AM PST · by TigerLikesRooster · 56 replies · 940+ views
    FT ^ | 12/20/08 | Krishna Guha
    Hedge funds gain access to $200bn Fed aid By Krishna Guha in Washington Published: December 20 2008 05:01 | Last updated: December 20 2008 05:01 Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit. The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not...