Monday September 19 20916 Housing and Economic stories

TOP STORIES:

Soaring Student Debt Prompts Calls for Relief - (www.wsj.com) The industry warnings are urgent and often dire: The housing market could stall. Marriages are being postponed. Workers won’t have the savings to retire. The nation’s food supply will be disrupted. They point to one threat: soaring student debt. A tripling of student debt over the past decade to more than $1.3 trillion has unleashed a torrent of Washington lobbying from outside the education sector, with various industries describing a “crisis” requiring federal intervention. Real-estate agents, farmers, architects, startup lenders, lawyers, tech companies, benefits administrators—even podiatrists—have sent lobbyists to Capitol Hill over the past two years to push for legislation to forgive or at least reduce what workers and consumers owe on their student loans.

Some of the Biggest Hedge Funds Are Bleeding Cash - (www.bloomberg.com) Some of the biggest and best-known hedge funds can’t hang on to client capital. Richard Perry, who started his hedge fund 28 years ago, has seen assets in his Perry Capital shrink to $4 billion, from $10 billion last September. That 60 percent drop comes as the firm’s main fund fell 18 percent from the end of 2013 through July. Perry isn’t the only manager struggling. John Paulson’s assets, on the decline since 2011, are down an additional 15 percent this year. And Dan Och, who like Perry cut his teeth at Goldman Sachs Group Inc., is now managing $39.2 billion at his Och-Ziff Capital Management Group, compared with $44.6 billion at the start of the 2016. 

Dalio sees 'dangerous situation' with global debt - (www.cnbc.com) The debt market is in a "dangerous situation" as central banks around the world lose their ability to stimulate growth, hedge fund giant Ray Dalio said Tuesday. As the world faces more than $11 trillion in negative-yielding debt, Dalio said central banks like the Fed, the European Central Bank and the Bank of Japan are facing a dilemma. "There's only so much you can squeeze out of the debt cycle, and we're there globally," the head of Bridgewater Associates said at the Delivering Alpha conference presented by CNBC and Institutional Investor. "You can't lower interest rates more." Dalio spoke as Fed officials contemplate a rate hike at some point this year. Market-implied probability indicates that the Fed won't hike until at least December. Its September meeting is next week.

After Donating 4 Times to Hillary’s Campaign, Fed Governor Tries to Prop up the “Financial Markets” - (www.wolfstreet.com) While totally blind to asset bubbles, Brainard, can see, however, the awesome job of Secretary of the Treasury that the rumor mill is already offering her in the “Clinton administration.” So she’s doing her darndest to impress Wall-Street darling Hillary. And sending actual money is one way. It is perfectly legal for a Fed governor, or any other American, to give a maximum of $2,700 per election to a Federal candidate or their campaign committee. So no laws were broken. But in April, Bloomberg reported that Brainard had made a fourth contribution to the Clinton campaign, this time $1,950, which brought the total she’d contributed to the maximum allowed of $2,700. But $2,700 isn’t nearly enough to elevate her to potential candidate for Secretary of the Treasury. Some extra credit is required – such as propping up the stock market with verbiage of free money forever.

Hanjin’s Fall Is Lehman Moment for Shipping, Seaspan CEO Says – (www.reuters.com) The fall of South Korea’s biggest container line Hanjin Shipping Co. is similar to the 2008 collapse of Lehman Brothers Holdings Inc. and has materially impacted the shipping industry, Seaspan Corp. Chief Executive Officer Gerry Wang said. Seaspan, the Hong Kong-based container-ship leasing company that has three vessels chartered to the distressed line, is evaluating all options and examining systemic risks resulting from Hanjin’s bankruptcy filing, Wang said in an interview with Bloomberg Television. In June, Wang had rejected Hanjin’s requests for charter-rate cuts before the shipping line filed for court receivership last month. “The fallout of Hanjin Shipping is like Lehman Brothers to the financial markets,” Wang said. “It’s a huge, huge nuclear bomb. It shakes up the supply chain, the cornerstone of globalization.”

OTHER STORIES:

Chinese Debt Soars Into Space - (www.wsj.com)

Divided Federal Reserve Is Inclined to Stand Pat - (www.wsj.com)
Wall Street rallies as traders reassess Fed outlook; dollar slips - (www.reuters.com)
Brainard Says Prudence Warranted as Hiking Rates Poses Risks - (www.bloomberg.com)

Jamie Dimon Says It’s Time for Fed to Raise Interest Rates - (www.bloomberg.com)
Three Fed Officials Say No Hurry to Raise Short-Term Interest Rates - (www.wsj.com)
Jump in Yields Raises Fear of Return to Bond Market ‘Tantrum’ - (www.wsj.com)