Posts belonging to Category PERSONAL LOANS



Elizabeth Warren To Joe Biden: Cancel Student Loans

Donald Trump support ending the Public Service Loan Forgiveness program

Sen. Elizabeth Warren (D-MA) tweeted today that President Elect Joe Biden and Vice President Elect Kamal Harris can cancel “billions of dollars of student loan debt.” According to Warren’s tweet, student loan forgiveness would be the most effective option for an economic stimulus: Biden-Harris can cancel billions of dollars in student loan debt, giving tens of millions of Americans an immediate financial boost and helping to close the racial wealth gap. This is the single most effective executive action available for massive economic stimulus.”

Warren, and Sen. Bernie Sanders (I-VT) championed student loan forgiveness on the presidential campaign trail. Sanders advocated for a full cancellation of student loan debt. For example, Sanders proposed that the federal government forgive all $1.6 trillion of student loans, including both private and federal student loans. Warren proposed student loan forgiveness for 95% of Americans and would have capped student loan forgiveness based on income. Both Sanders and Warren also support continuation of the Public Service Loan Forgiveness program—a federal program that forgives federal student loans for borrowers who work full-time for a qualified non-profit or public service employer.

In contrast, President Donald Trump and U.S. Secretary of Education Betsy DeVos support ending the Public Service Loan Forgiveness program. Trump and DeVos support student loan forgiveness through income-driven repayment plans, which are available for borrowers to repay federal student loans. However, they do not support a separate student loan forgiveness plan only for public servants.

https://www.forbes.com/

Paul Krugman: “Stocks Are Soaring. So Is Misery.”

“Optimism about Apple’s future profits won’t pay this month’s rent”

“On Tuesday, the S&P 500 stock index hit a record high. The next day, Apple became the first U.S. company in history to be valued at more than $2 trillion. Donald Trump is, of course, touting the stock market as proof that the economy has recovered from the coronavirus; too bad about those 173,000 dead Americans, but as he says, “It is what it is.”

But the economy probably doesn’t feel so great to the millions of workers who still haven’t gotten their jobs back and who have just seen their unemployment benefits slashed. The $600 a week supplemental benefit enacted in March has expired, and Trump’s purported replacement is basically a sick joke.

Even before the aid cutoff, the number of parents reporting that they were having trouble giving their children enough to eat was rising rapidly. That number will surely soar in the next few weeks. And we’re also about to see a huge wave of evictions, both because families are no longer getting the money they need to pay rent and because a temporary ban on evictions, like supplemental unemployment benefits, has just expired” (Extract from an Op-ed written by The Nobel Prize Paul Krugman in the New-York Times).

https://www.nytimes.com/

Facebook’s Libra crypto backers step back

Regulatory pressure

Multi-national regulatory pushback against Facebook’s effort to create a cryptocurrency payment network is slowing the project and causing supporters such as Visa and Mastercard to back away, according to sources familiar with the situation and a published report.

Along with the initial announcement of its Libra digital currency and Calibra online digital wallet to store it, Facebook earlier this year released the names of 27 founding companies who signed on to become part of the non-profit Libra Association. The association was formed to help construct and manage the blockchain-based payment network. Libra Association members such as Visa, Mastercard and others are reconsidering their involvement as pressure from U.S. and European regulators builds according to a report in the Wall Street Journal. One person directly familiar with the situation said Facebook’s Libra team is “overwhelmed now coping with regulator pushback” and it is slowing innovation and implementation; earlier remarks by Facebook CEO Mark Zuckerberg may have alluded to the same situation.

U.S. Income Inequality Worsens

Widening To A New Gap

The gap between the richest and the poorest U.S. households is now the largest it’s been in the past 50 years — despite the median U.S. income hitting a new record in 2018, according to new data from the U.S. Census Bureau.

U.S. income inequality was “significantly higher” in 2018 than in 2017, the federal agency says in its latest American Community Survey report. The last time a change in the metric was deemed statistically significant was when it grew from 2012-2013. While many states didn’t see a change in income inequality last year, the income gap grew wider in nine states: Alabama, Arkansas, California, Kansas, Nebraska, New Hampshire, New Mexico, Texas and Virginia.

The disparity grew despite a surging national economy that has seen low unemployment and more than 10 years of consecutive GDP growth.

http://www.npr.org

Are US interest rates going negative?

Ron Paul: “the Fed can’t stop it”

Ron Paul is warning negative interest rates will crush the global economy. The former Republican congressman from Texas believes the U.S. won’t be the exception.

“We will join the rest of them and go to total negative rates in hopes that that will be the solution,” he told CNBC’s “Futures Now” on Thursday. “We’ve never had as many currencies in negative interest rates. $17 trillion worth of bonds [are] in negative interest rates. It’s never existed before. And, that’s a bubble. So, we’re in the biggest bond bubble in history, and it’s going to burst.”

Paul, a former presidential candidate and vocal libertarian known for his economic and stock market bubble warnings, contends the Federal Reserve’s policies are powerless in this environment. He doesn’t believe this week’s Fed meeting will provide any kind of relief and cutting rates will not be the answer.

http;//www.cnbc.com

Everyone Gets $1,000 a Month in Andrew Yang’s America

Basic Income Wins Converts from Musk to Zuckerberg

Every Democratic candidate running for president supports a higher federal minimum wage — everyone, that is, except tech entrepreneur Andrew Yang. The long-shot outsider proposes giving $1,000 a month in cash to every American instead — a policy known as Universal Basic Income, which was a major talking point for Yang during Thursday night’s candidate debate.
“It would be the trickle-up economy from our people, families and communities who would spend the money,” Yang said Thursday in Miami. “And it would circulate through our regional economies and neighborhoods, creating millions of jobs, making our families stronger and healthier.”
UBI is among the radical economic ideas gaining traction in the U.S., where prosperity and security eludes many UBI is among the radical economic ideas gaining traction in the U.S., where prosperity and security eludes many people even after a decade-long expansion. The concept has been around for centuries, and lately it’s picked up supporters including Silicon Valley types — like Facebook Inc. co-founder Chris Hughes — and a Nobel-prize winning economist.

http;//www.bloomberg.com

Why is Deflation a Central Bank’s Worst Nightmare?

In US consumer spending accounts for 70% of the economy

Once deflation sets in, it can take decades for an economy to break out of its grip—Japan is still trying to climb out of a deflationary spiral dubbed the Lost Decades that began in 1990. But what can central banks do to fight the pernicious and devastating effects of deflation? In recent years, central banks around the world have used extreme measures and innovative tools to combat deflation in their economies. Below, we discuss how central banks fight deflation. Deflation is defined as a sustained and broad decline in price levels in an economy over a period. Deflation is the opposite of inflation and is also different from disinflation, which represents a period when the inflation rate is positive but falling.

https://www.investopedia.com/

Capital One target of massive data breach

100 million Capital One credit applications

A hacker gained access to personal information from more than 100 million Capital One credit applications, the bank said Monday as federal authorities arrested a suspect in the case . Paige A. Thompson — who also goes by the handle “erratic” — was charged with a single count of computer fraud and abuse in U.S. District Court in Seattle. Thompson made an initial appearance in court and was ordered to remain in custody pending a detention hearing Thursday.

The hacker got information including credit scores and balances plus the Social Security numbers of about 140,000 customers, the bank said. It will offer free credit monitoring services to those affected.

https://www.abcnews.go.com

The 1% grab 82% of all wealth

More than $8 of every $10 of wealth created last year went to the richest 1%

That’s according to a new report from Oxfam International, which estimates that the bottom 50% of the world’s population saw no increase in wealth.

“The billionaire boom is not a sign of a thriving economy but a symptom of a failing economic system,” said Winnie Byanyima, executive director of Oxfam International.
The head of the advocacy group argued that the people who “make our clothes, assemble our phones and grow our food” are being exploited in order to enrich corporations and the super wealthy. The study, released ahead of the World Economic Forum in Davos, was produced using data from Credit Suisse’s(CS) Global Wealth Databook.

http://money.cnn.com …  January 22, 2018

Senate approves GOP tax plan

First overhaul of the US tax code in more than 30 years

In a vote in the early Wednesday morning hours, the Senate approved the final version of the first overhaul of the US tax code in more than 30 years, handing President Donald Trump and congressional Republicans their most significant legislative victory of 2017.
The bill passed along party lines, 51-48 with the final result announced by Vice President Mike Pence who presided over the vote. Sen. Jeff Flake, the last undeclared Republican, voted yes.
http://www.cnn.com… Wed., 20  December 2017

Americans keep waiting for bigger paychecks

The increase in wages remains frustratingly low given the health of the overall job market

Average hourly earnings rose 2.5% over the past 12 months. That’s a slight improvement from the 2.4% increase the government reported for October. Still, it remains below the 3% increase that most economists (not to mention workers) would like to see. People are finding jobs. That’s not the problem. The economy added 228,000 jobs last month and the unemployment rate remained at 4.1% — its lowest level since December 2000.

http://www.cnn.com… Wed., 13  December 2017

Chinese Fintech Qudian listed at Wall Street

Chinese online small consumer credit provider Qudian debuts on NYSE

Chinese online small consumer credit provider Qudian Inc. made its debut on the New York Stock Exchange (NYSE) on Wednesday, trading under the ticker symbol of “QD”. Qudian priced its initial public offering of 37,500,000 American depositary shares (ADSs) at 24.00 U.S. dollars per ADS for a total offering size of approximately 900.00 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs. Each ADS represents one Class A ordinary share. Of the total 37,500,000 ADSs offered, 35,625,000 ADSs are being offered by the Company and 1,875,000 ADSs are being offered by selling shareholders.
http://www.xinhuanet.com…  Thu.,  19  October 2017

Pioneer of behavioural economics awarded

Richard Thaler Nobel prize 2017 in economics

One of the founding fathers of “nudge” theory, which has helped boost British tax receipts and encouraged smokers to become vapers, has been awarded the 2017 Nobel prize for economics. Richard Thaler co-wrote a bestselling book on the nudge concept read by politicians around the world and soon had them embracing the notion that people can be influenced by prompts – such as changing the wording of tax demands – to alter their behaviour.
As well as tweaking the sentences in tax reminder letters to increase HMRC takings, Thaler’s branch of economics has influenced Theresa May’s announcement of an “opt out” policy for organ donations where it is presumed that people wish to donate body parts unless they state otherwise. The Department of Health has also adopted nudge principles in its approach to e-cigarettes.
http://www.theguardian.com…  Tue.,  10  October 2017

U.S. home sales stumble

Prices hit record high

U.S. home resales fell more than expected in June as a dearth of properties amid strong demand pushed prices to a record high, keeping first-time buyers on the sidelines. The housing market has experienced an acute shortage of homes for sale for about two years. As the labor market churns out more jobs and builders struggle to secure land, building materials and skilled labor, the situation could worsen.

“The fact that demand is so high is actually a good sign of economic health,” said Svenja Gudell, chief economist at Zillow. “But that’s probably small comfort to buyers, especially first-time buyers that are having an especially difficult time finding entry-level homes for sale.”The National Association of Realtors said on Monday existing home sales dropped 1.8 percent to a seasonally adjusted annual rate of 5.52 million units last month.

Economists had forecast sales falling 1.0 percent to a 5.58 million-unit rate. Sales were up 0.7 percent from June 2016. The shortage of properties has led to bidding wars, culminating in house price increases outpacing wage gains.

http://www.reuters.com…   Tue.,  25  July 2017

Sales record for Amazon

Amazon.com breaks sales record for ‘Prime Day’

 Amazon.com Inc (AMZN.O) said on Tuesday its Prime Day sale was on track to be the biggest shopping event in its history by sales. The world’s largest online retailer said customers ordered more than three times as many Echo-family speakers than during Prime Day 2016, which at the time broke records for Amazon devices. Third-party sellers sold over 50 percent more items on the site by noon local time (1900 GMT) than in the same timeframe last year, Amazon said in a statement.

The company has not disclosed sales figures, overall or for the Echo. Analysts estimated last year’s event brought in well over $500 million. The news underscores Amazon’s break-neck pace of growth as more shoppers order online instead of going to brick-and-mortar stores. It also highlights the winning formula of Amazon’s shopping club Prime, the cornerstone of its business. Customers had to join Amazon Prime to get discounts during the 30-hour event. U.S. members of the club pay $99 per year for benefits like two-day shipping, and they tend to buy more goods, more often from Amazon. A timer showing when the deals would expire added further shopping encouragement.

http://www.reuters.com…   Wed.,  12  July 2017