The
ObamaCare-IRS Nexus - (online.wsj.com) One
of the big questions out of the IRS targeting scandal is this: How can an agency
that engaged in such political misconduct be trusted to implement ObamaCare?
This week'sHalbig v. Burwell ruling reminded us of the answer. It can't. The
D.C. Circuit Court of Appeals ruled in Halbig that the administration
had illegally provided ObamaCare subsidies
in 36 insurance exchanges run by the federal government. Yet it wasn't the
"administration" as a whole that issued the lawless subsidy gift. It
was the administration acting through its new, favorite enforcer: the IRS. And
it was entirely political. Democrats needed those subsidies. The party had
assumed that dangling subsidies before the states would induce them to set up
exchanges. When dozens instead refused, the White House was faced with the
prospect that citizens in 36 states—two-thirds of the country—would be exposed
to the full cost of ObamaCare's overpriced insurance. The backlash would have
been horrific, potentially forcing Democrats to reopen the law, or even costing
President Obama re-election.
Investors
Retreat From Junk Bonds - (online.wsj.com) Investors are selling junk bonds at the
fastest pace in more than a year, as fresh interest-rate fears and geopolitical
turmoil amplify valuation concerns following a long rally. Prices on bonds
issued by lower-rated U.S. companies tumbled to a three-month low this week,
according to a Bank of America Merrill Lynch index. Investors yanked $2.38
billion from mutual funds and exchange-traded funds dedicated to junk bonds in
the week ended Wednesday, the largest weekly withdrawal since June last year,
said fund tracker Lipper. That came on the heels of $1.68 billion that poured
out the week before. Companies have taken note, with some borrowers delaying
scheduled debt sales and others canceling planned deals. New issuance is on
track for its slowest month since February, according to data provider
Dealogic.
China
Credit Trust Delays Payment on $210 Million Product - (www.bloomberg.com) China Credit Trust Co. delayed payments on a 1.3 billion-yuan
($210 million) high-yield trust product backed by coal-mining assets after the
borrower failed to raise funds to repay investors. The Beijing-based company
will extend the maturity of Credit Equals Gold No. 2, which was scheduled to expire today,
according to a statement distributed to investors in the product and seen by
Bloomberg News. China Credit
Trust aims to sell assets held by the product within 15 months to repay
investors, the July 24 statement showed. The product is at least the second of
China Credit Trust’s to face difficulties this year and highlighted rising
default risk in China’s $1.9 trillion trust industry. Credit Equals Gold No. 1,
created to raise 3 billion yuan for a coal miner, was bailed out days before
maturity in January, averting what would have been the nation’s first trust
default in at least a decade.
Ex-Banco
Espírito Santo Head Detained Under Money Laundering Investigation - (online.wsj.com) Troubles
at Portuguese conglomerate Espírito Santo International SA intensified Thursday
after another of its units filed for creditor protection in Luxembourg and the
group's main figure, former Banco Espírito Santo SA Chief Executive
Ricardo Salgado, was detained in a money-laundering investigation. While the
investigation isn't directly related to the creditor-protection request from
Espírito Santo Financial Group SA, the matters represent the latest in a series
of setbacks for Mr. Salgado, the patriarch of one of Portugal's most prominent
families, who is currently trying to save a business empire under serious
financial strain. Mr. Salgado released a statement saying he believes,
"truth and justice will prevail." For Banco Espírito Santo, which is
20%-owned by Espírito Santo Financial Group, the creditor-protection request
means it probably will face losses on its exposure to the parent, which
includes more than €900 million ($1.21 billion) in loans and other dealings.
Shares
Of A Major US Trucker Are Crashing After Management Says It Can't Find Drivers
For Its Trucks - (www.businessinsider.com) Shares
in Swift Transportation, the largest truckload carrier in North America, were down 14% Friday after management warned
it was going to have to invest more to address a driver shortage. The New
Jersey-based firm now says it's
going to have to spend more on wages and training to hold onto and attract ore
drivers. ...We were constrained in the truckload and (central refrigerated
systems) segments by the challenging driver market. Our driver turnover
and unseated truck count were higher than anticipated. Therefore, we sold more
trucks in the second quarter to offset the impact of idle equipment, which
drove additional gains on sale of equipment this period. After assessing the
current and expected environment, we believe the best investment we can make at
this time, for all of our stakeholders, is in our drivers. Our goal is to clear
the path for our drivers by helping them overcome challenges, eliminate wait
times and take home more money.
CYNK
Shares Reopen For Trading, Plummet 86% To $2.01 Then Rise 150% Off The Lows As
BTFDers Arrive - (www.zerohedge.com)
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