The Feds Don't Care If You Dropped Out of
College. They Want Their Money Back - (www.bloomberg.com) When
it comes to collecting on student loans, the U.S. Department of Education treats
college dropouts the same as Ivy League graduates: They just want the money
back. New data show the perils of that approach. Dropouts who took out loans to
finance the degrees they ultimately didn't obtain often end up worse off
for attending college. Unlike their peers who earn degrees, dropouts
generally don't command higher wages after leaving
school, making it harder for them to repay their student debt.
The typical college dropout experienced a steep fall in wealth from 2010 to
2013, figures from the Federal Reserve in
Washington show, and an 11 percent drop in income—the sharpest decline
among any group in America. It should therefore come as no surprise that half
of federal student loan borrowers who dropped out of school within the past
three years are late on their payments, according to Education Department
figures provided to Bloomberg. More than half of those delinquent
borrowers are at least 91 days behind. By comparison, just
7.2 percent of recent college graduates are more than three months late on
their debt1.
Social Security's looming $32 trillion
shortfall - (www.cnbc.com) You
can look at the financial health of Social Security in many ways. The official
version, found in the Social Security and Medicare Boards of Trustees' annual report,
is this: Social Security's total income is projected to exceed its total cost
through 2019, as it has since 1982. After 2019, interest income and money taken
out of reserves will provide the resources needed to offset Social Security's
annual deficits until 2034. By then, if Congress does nothing, the federal
government will collect enough in payroll taxes to pay about 75 percent
of scheduled retirement benefits until
2090. The Social Security Administration projects that unfunded obligations
will reach $11.4 trillion by 2090. That's up $700 billion from the $10.7
trillion the administration projected for its 2089 shortfall.
Italian banks may face rising funding costs
after DBRS review - (www.reuters.com) Italy's
banks face the prospect of higher funding costs after DBRS put the country's
last "A" credit rating on review citing uncertainty over a referendum
scheduled for the autumn on a set of changes to the constitution. A
spokesperson said the unexpected move "irritated" the Economy
Ministry of Pier Carlo Padoan, who like Prime Minister Matteo Renzi has said
the government would resign if the referendum does not approve the new measures
which are central to its agenda. DBRS rates Italy "A (low)", making
it the only one of the four major agencies whose rating the European Central
Bank can use, to keep Italy in the top band for collateral requirements for its
lending to banks. That means a downgrade from DBRS would raise the cost for
Italian banks of using government bonds as collateral for taking loans from the
ECB.
Hacked Bitcoin Exchange Users to Lose 36% - (www.bloomberg.com) Hong
Kong-based Bitfinex said all users will lose 36 percent of their deposits after
the bitcoin exchange concluded its review of a $71 million hacking attack.
Start your day with what’s moving markets. Get our markets daily newsletter. To
compensate its customers, Bitfinex said users will receive tokens that may
later be redeemed or exchanged for shares in its parent company. Following the
announcement, bitcoin climbed to $594 as of 10:55 a.m. on Sunday in
Tokyo, based on prices from Coinbase. The virtual currency dropped 12 percent to
$577.23 in the week through Friday, its largest weekly decline since June,
according to Bloomberg prices. “After much thought, analysis, and consultation,
we have arrived at the conclusion that losses must be generalized across all
accounts and assets,” the exchange wrote in a blog post on
Saturday. “In place of the loss in each wallet, we are crediting a token
labeled BFX to record each customer’s discrete losses.”
City
of London Office Values Plunge 6% in One Month - (www.wolfstreet.com) In
July, a sharp mechanism started working: one of the hottest commercial
real estate markets in the world, and one of the most expensive, began to
deflate. And the hiss is deafening. Capital values for offices in the City
of London – the financial district of London – plunged 6.1% in July, from June,
real estate firm CBRE reported today. In its monthly index, “capital value”
represents the probable prices that would have been paid at the date of
valuation. And it extended beyond London: In the UK office values dropped 4.1%
from June. Commercial property values overall – including office, retail,
industrial, and other – dropped 3.3%, which chopped year-over-year growth to
0.4%.
Gulf Stocks Follow Emerging Markets Higher After Rebound in Oil
- (www.bloomberg.com)
China's July Forex Reserves Fall to $3.20 Trillion - (www.reuters.com)
Asia Stocks Rise, Led by Japan, as Yen Falls After U.S. Payrolls - (www.bloomberg.com)
China's July Forex Reserves Fall to $3.20 Trillion - (www.reuters.com)
Asia Stocks Rise, Led by Japan, as Yen Falls After U.S. Payrolls - (www.bloomberg.com)
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