debt Tag

The borrower is the servant of the lender, and through the mechanism of government debt virtually the entire planet has become the servants of the global money changers.  Politicians love to borrow money, but over time government debt slowly but surely impoverishes a nation.  As the elite get governments around the globe in increasing amounts of debt, those governments must raise taxes in order to keep servicing those debts.  In the end, it is all about taking money from us and transferring it into government pockets, and then taking moneyRead More
Once again, it’s the German speakers who pinch their pennies. At least that’s the conclusion of a European Central Bank working paper by Benjamin Guin. He looked at Switzerland, a country boasting three major linguistic and cultural groups, where most policies and laws such as interest rates or taxes that affect savings rates are set at a national or cantonal level. Source: ECB Working Paper No. 2069 by Benjamin Guin That allowed Guin, an economist from the University of St. Gallen now working at the Bank of England, to dig into the nitty-gritty to figureRead More
Debt is serfdom, capital in all its forms is freedom.  If we accept that our financial system is nothing but a wealth-transfer mechanism from the productive elements of our economy to parasitic, neofeudal rentier-cartels and self-serving state fiefdoms, that raises a question: what do we do about it? The typical answer seems to be: deny it, ignore it, get distracted by carefully choreographed culture wars or shrug fatalistically and put one’s shoulder to the debt-serf grindstone.  There is another response, one that very few pursue: fanatic frugality in service of financial-political independence. Debt-serfs andRead More
Mongolia will work to get its bailout approved soon, according to a senior finance ministry official, after the International Monetary Fund postponed a vote on it over concerns about a new law that affected foreign exchange and investment. “We are working towards resolving this issue as soon as possible and we hope that once it’s resolved the IMF board meeting will take place,” Manduul Nyamdeleg, head of the financial markets and insurance division, said by phone in Ulaanbaatar. The fund delayed its decision on the bailout in order to seek clarity on theRead More
Twenty years after the Asian financial crisis and a decade since the global credit crunch, the region is swimming in debt. The debt binge is spread across companies, banks, governments and households and is inflating bubbles in everything from the price of steel rebar in Shanghai to property prices in Sydney. As the Federal Reserve raises borrowing costs, that means debt is again a concern. Exposure to China’s slowdown, fluctuating commodity prices and currency volatility are just some of the risks. S&P Global Ratings estimates that of the almost $1 trillionRead More

Posted On April 11, 2017By HoudiniIn News

Indonesian Bad Loans to Worsen, Bailout Agency Says

The non performing loan problem at Indonesia’s banks is likely to get worse, keeping economic growth below 6 percent over the coming two years as lenders hold back from boosting credit, according to a top official at the country’s deposit insurance agency. “We haven’t seen the bottom for NPLs because commodity prices are still volatile and we see uncertainties that can affect our domestic economy,” Destry Damayanti, commissioner at the agency known as LPS, said in an interview at her office in Jakarta last week. “Banks are still in consolidationRead More

Posted On April 3, 2017By HoudiniIn News

Auto Debt Spoiling for a Wreck

For the past few months, clouds over the $1.2 trillion market for U.S. auto debt have grown darker. The latest round of investor hand-wringing came last week when Ally Financial warned its profit would grow less than expected because of falling used-car values. That built on angst triggered by Ford Motor Co.’s decision in November to cut $300 million from its credit arm’s profit forecast for 2017. It’s no secret that auto-loan borrowers are struggling to repay their debt and that some firms are starting to experience the consequences. Delinquency rates have been soaring to someRead More
China’s riskiest corporate borrowers are raising an unprecedented amount of debt overseas, leaving global investors to shoulder more credit risks after onshore defaults quadrupled in 2016. Junk-rated firms, most of which are property developers, have sold $6.1 billion of dollar bonds since Dec. 31, a record quarter, data compiled by Bloomberg show. In contrast, such borrowers have slashed fundraising at home as the central bank pushes up borrowing costs and regulators curb real estate financing. Onshore yuan note offerings by companies with local ratings of AA, considered junk in China, fellRead More
In 1988, a bank called Guardian Savings and Loan made financial history by issuing the first ever “subprime” mortgage bond. The idea was revolutionary. The bank essentially took all the mortgages they had loaned to borrowers with bad credit, and pooled everything together into a giant bond that they could then sell to other banks and investors. The idea caught on, and pretty soon, everyone was doing it. As Bethany McLean and Joe Nocera describe in their excellent history of the financial crisis (All the Devils are Here), the firstRead More
The euro area pressured Greece to resolve outstanding pension and labor-market issues with its bailout creditors, as the country missed yet another deadline for unlocking funds this week. The currency bloc’s finance ministers meeting in Brussels on Monday said that the government of Alexis Tsipras has yet to comply with the terms attached to the emergency loans that have kept the country afloat since 2010. The ministers’ Greek counterpart, Euclid Tsakalotos, will stay in Brussels through the week to continue negotiations with representatives of creditor institutions, in a sign of increasingRead More