Wednesday, February 25, 2015

Thursday February 26 Housing and Economic stories


Student loan debt piles up to $1.16 trillion: NY Fed - (www.cnbc.com)  Even with an improved job market, those student loans are getting harder to keep up with. While households are generally doing a better job making payments on their mortgages and credit cards, the delinquency rates on student loans worsened in the last three months of 2014, according a new report from the New York Federal Reserve. "Although we've seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student loan balances and delinquencies is concerning," said New York Fed researcher Donghoon Lee in a statement. "Student loan delinquencies and repayment problems appear to be reducing borrowers' ability to form their own households." Overall, household debt levels rose one percent—to $11.8 trillion—in the fourth quarter of 2014, after a steady decline in loan balances following the Great Recession reversed course in the fourth quarter of 2013. Outstanding balances were up for mortgages ($39 billion), student loans ($31 billion), car loan ($21 billion) and credit card debt ($20 billion).

[Bloomberg] Libya’s Chaos Puts Neighbors on Alert as Italy Weighs Action - (www.bloomberg.com) The beheading of 21 Egyptian Christians by Islamic State’s affiliate in Libya is giving impetus to calls for broader military action against Islamist militants in the oil-rich country. Egyptian President Abdel-Fattah El-Sisi, whose air force bombed Islamic State targets in Libya on Monday, said his country will ask the United Nations Security Council to authorize intervention in the North African nation. Italy, Libya’s former colonial ruler, said it would consider sending a force under a UN mandate. The Egyptian military also deployed soldiers at home to “secure vital institutions and installations,” it said in a statement. Tunisia, Libya’s western neighbor, said helicopters and fighter jets were conducting reconnaissance missions to monitor the border. More than three years after NATO-led airstrikes helped Libyan rebels end Muammar al-Qaddafi’s four decades of autocratic rule, the crisis in the holder of Africa’s largest oil reserves is posing a threat to its neighbors as well as European interests. Italian oil company Eni SpA is Libya’s biggest foreign oil producer.

The North Sea oil industry needs tax cuts for Scotland's sake - (www.businessinsider.com)  North Sea oil companies are running out of time. That's according to Scotland's first minister Nicola Sturgeon, other politicians, oil industry groups, and companies. Already, BP and a range of other energy giants cut jobs and investment in the sector as oil prices still remain starkly lower than the triple digit highs of June 2014. So, despite the Scottish National Party's (SNP) line that any talk about dwindling North Sea reserves was "scaremongering," Sturgeon begged Britain for tax breaks. "I believe that North Sea oil is a fantastic asset for Scotland and will continue to be so for decades to come," said Sturgeon in a press statement.

Turkey Central Bank Head Faces 2 Years In Jail For Not Lowering Interest Rates - (www.zerohedge.com) Having questioned the need for an independent central bank a week ago, saying that if they can’t cope with their duties, they will be held accountable, Turkey's President Recep Tayyip Erdogan has filed a lawsuit against the head of Turkey’s central bank, Erdem Basci. As Trend reports, the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank. As Trend reports, A prosecutor of a court in Ankara, Serif Aydin, filed a lawsuit against the head of Turkey’s central bank, Erdem Basci. Turkish news channel Haber7 reported that the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank. The prosecutor said that, in case of a trial, the Turkish central bank’s head can be imprisoned for up to two years. On Feb. 10, Turkey’s President Recep Tayyip Erdogan criticized Basci’s work, saying that if the central bank’s head can’t cope with his duties, he will be held accountable.

Greek Banks Need More Emergency Funds as Deposits Drop - (www.bloomberg.com) Greek lenders are urging central bank Governor Yannis Stournaras to seek additional emergency cash as deposit outflows accelerate, according to three people familiar with the situation. Deposit withdrawals picked up after talks between Greece and its euro-area creditors on extending its bailout ended in acrimony in Brussels Monday night, said the people, who asked not to be identified because the information is private. Stournaras meets European Central Bank Governing Council colleagues in Frankfurt tomorrow as Greek banks exhaust their current allocation of emergency funds, the three people said. The lenders, unable to tap investors for funds, are bleeding deposits amid uncertainty over their country’s future in the euro area and concern capital controls might be used to stem outflows. Banks are being kept afloat through the Emergency Liquidity Assistance lifeline extended by the Bank of Greece, subject to approval by the ECB. The ELA pool, which currently stands at 65 billion euros ($74 billion), is extended to solvent lenders as a temporary measure to cover liquidity shortages.



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