Debt Archives - Page 2 of 14 - Money Morning - Only the News You Can Profit From
Here's What $1.2 Quadrillion Looks Like
The global derivatives market is big. Really big. So big – and so unregulated – in fact that no one really knows exactly how big it is, but the very best estimates put the notional value at $1.2 quadrillion dollars. That handily beats the entire world's "GDP" of $71.8 trillion. The number is so big that it really defies anything on a human scale. Humans don't do quadrillions of anything – at least not usually.
Or think of it this way: There are about 2 quadrillion stars in the "El Gordo" cluster, the largest cluster of galaxies we've observed so far. The derivatives market is galactic in scope.To continue reading, please click here...
U.S. Debt Ceiling Debate: What Will Happen
A U.S. debt ceiling debate is once again on Congress' agenda. Congress has about three weeks to pass a budget, and the White House has said that U.S. President Barack Obama will not negotiate over raising the 2013 debt ceiling provisions.
We've seen this script before on debt ceiling deadlines, and with so many other pressing issues. Congress will again kick the can down the road.
Before that, a brewing showdown will again unfold, one with distinct consequences for other forms of legislation and the country.
Here's How Much Higher Mortgage Rates Will Raise Your Monthly Payments
Where will higher mortgage rates raise monthly mortgage payments most?
These three charts from the real estate site Zillow.com depict how higher mortgage rates will affect monthly mortgage payments in different markets throughout the United States.
The charts are based on the percentage of income homeowners spend on their monthly payments, with a pre-housing bubble baseline of 20% of median household income.
The first chart shows how much more expensive than historical norms monthly payments will become in six of the priciest metropolitan areas when mortgage rates climb to 5%, assuming homes appreciate in line with Zillow projections.
Monthly payments in the San Jose metro area will increase the most (22% over the baseline) followed by Los Angeles (19%), San Diego (14%), San Francisco (11%), Portland, OR (7%) and Denver (1%).
Student Loan Debtors Bamboozled Again
I know a lot of you out there don't have sympathy for student loan debtors who complain about their debt.
You see it as a matter of personal responsibility – they chose to sign a contract and so should suck it up and uphold their end of the deal.
Money Morning's Capital Wave Strategist Shah Gilani says it best, though:
"You're not wrong. But there are other forces exerting outside influence on the inner intentions of a lot of 'students' susceptible to being sold a bill of goods. Sometimes we're stupid for being conned, and sometimes the con is just so cleverly concealed."
Think of all the branding, marketing, and pressure swirling around the heads of these young folks.
And many don't have parents or educators taking the time to sit down and weigh the options with them.
They are being deceived into paying up to $1,600 in initial fees, and monthly fees as high as $50, to private "debt relief firms" for help that they could otherwise get for free.
The Scary Reality of the Student Loan Bubble in 5 Charts
The explosion of the student loan bubble could lead to the next financial crisis in the United States, says a new federal report -which highlights the growing problem in these alarming new charts.
As of 2012, about $1 trillion was tied up in student loans – more than the total amount of credit card debt in the nation, the report by the Federal Reserve Bank of New York said.
The majority of the student loans are backed by the federal government, which means the public bears most of the risk associated with student loans.
And those loans are looking riskier by the day.
The Debt Ceiling 2013: How We Got Here, What Could Happen
A new twist to investing and financial planning is averting travesties that the government itself created; first it was the fiscal cliff, now it's the debt ceiling 2013.
The debt ceiling is a part of the way government has to go about doing its business.
However, both sides of Washington have come to use the full faith and credit of the United States of America as a bargaining chip – and the consequences are huge.
But it wasn't always like this.