Senators
introduce bipartisan bill to replace Fannie, Freddie with new agency - (www.washingtonpost.com) Since
the financial crisis in 2008, Fannie, Freddie and other government-backed
agencies have insured nearly 90 percent of new mortgages. While that has made
home loans widely available despite the financial upheaval, it means taxpayers
are at risk if homeowners default on their loans. Against this backdrop, Corker
and Warner have proposed a compromise that would make the government the last
line of defense in the event of a housing crash. Under the new proposal,
homeowners, banks and other private-sector firms would suffer first if a
borrower stops paying a mortgage. A borrower would either have to put 20
percent down to get a government-backed loan, or, if the borrower put down less
money, would have to pay for mortgage insurance to make up the difference. That
puts the borrower or private mortgage insurance company on the line for 20
percent of the value of the loan. (And the home could be sold for the remainder
of the loan value, assuming that it has not declined in value by more than 20
percent.)
Illinois
Offers $1.3 Billion of Munis in Worst Market Since 2008 - (www.bloomberg.com) Illinois lowered yields as it marketed $1.3
billion of general-obligation bonds, its first offer since the state’s credit
rating was cut this month after lawmakers failed to bolster an underfunded
pension system. Today’s deal includes an uninsured portion maturing in July
2023 that’s being marketed at a yield of 4.46 percent, down from 4.56 percent
initially, according to data compiled by Bloomberg. The yield is 1.46
percentage points more than benchmark munis, data compiled by Bloomberg show.
At that level, the penalty on Illinois’s debt would be about 13 percent wider
than in April, when the state sold 10-year securities yielding 3.3 percent, or
1.29 percentage points above AAAs. Final pricing is scheduled for today.
Cash hard to raise as Fed jars credit markets - (www.reuters.com) Prospective
borrowers ranging from U.S. companies to county governments on Monday shelved a
raft of deals to raise new capital or refinance debt as a suddenly uncertain
interest rate environment dented demand. In the municipal bond market, half a
dozen deals aimed at raising collectively more than $300 million were
postponed, while several companies pulled plans to refinance syndicated bank
loans. Corporate bonds,
meanwhile, passed a fourth day with no deals brought to market, either in the
risky high-yield sector or the safer investment-grade sphere. Raising capital
has been challenging to say the least since last Wednesday when Federal Reserve
Chairman Ben Bernanke sent interest rates soaring by outlining a plan to wind
down the central bank's massive stimulus program.
Recent college grads face 36% 'mal-employment'
rate - (money.cnn.com) More
than a third of recent college grads with jobs are working in positions that
don't require a degree. Economists call that figure the
"mal-employment" rate, and right now it tops 36% for college-educated
workers under the age of 25, according to figures crunched by Andrew Sum,
director of the Center for Labor Market Studies at Northeastern University. "People
don't go to college to be a waiter or a bartender," Sum said. "They
lose and we lose." The official unemployment rate for grads under age 25
was 7% in May, but that doesn't reflect all those who are under-utilized in one
way or another. Nearly 8% of grads are working part-time, but would like
full-time positions. These workers aren't counted in the mal-employment rate.
Wounded
Veteran Congresswoman Eviscerates Man Accused Of Abusing Veterans Disability - (www.businessinsider.com) Castillo
attended a prep school affiliated with West Point Military academy for one year
in 1984. After he sprained his ankle in training, he dropped out. He later
enjoyed a career as a college quarterback at San Diego State University. He
went 27 years without claiming any benefits affiliated with his military
service, until his company acquired a company called Signet Computers and he
sought a government contract. Because having a service connected disability
would have helped him get the contract, he wrote this email to the VA examiner
reviewing his case: My family and I have made considerable sacrifices for
our country. My service connected disability status should serve as a
testimony to that end. I can’t play with my kids because I can’t walk
without pain. I take twice daily pain medication so I can work a normal
day’s worth. These are crosses that I bear due to my service to our great
country. I would do it again to protect this great country. Part of my
reasoning for my line of work is that I can continue to support the US
federal government. My ask is that you certify me, my company, so that my
sacrifices and investments are for not [sic] and that I can provide for my
family.
No comments:
Post a Comment