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The most infuriating falsehoods about the tax bill and those who told them

“First, President Trump and his senior adviser insisted the tax bill would not benefit the rich” reports washingtonpost.com. The bill is in fact likely to save him tens of millions of dollars, given the tax breaks for the rich (e.g. reducing the top marginal tax rate, installing a pass-through tax deduction, paring back the estate tax).James Lankford (R-Okla.) had this jaw-dropping exchange on Sunday on “Face the Nation”: LANKFORD: Actually, all the independent analysis doesn’t note that [the tax bill would grow the debt by $1 trillion or more].A revenue-neutral corporate…

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Campbell’s credit downgraded to 2 notches above junk at S&P Global

“We believe the proposed acquisition will substantially increase Campbell’s debt obligations and meaningfully weaken its credit protection measures,” S&P Global said in a statement” writes Reporter Editor for marketwatch.com. Campbell’s stock has shed 17% year to date, while the S&P 500 SPX, +0.60% has gained 20%.Campbell Soup Co.’s CPB, +1.77% credit rating was downgraded at S&P Global Ratings to BBB, which is just two notches above junk status, from BBB+, in the wake of the soup and snack company’s deal to buy Synder’s-Lance Inc.Campbell’s stock rose 1.7% in morning trade.Campbell…

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Debt bear stalks Goldilocks economy…

“A wave of failures and defaults on bonds could then quickly pull the rug out from under the global economy” writes Antonio Rodriguez for yahoo.com. The US economy is purring along in the longest cycle of expansion in its history and China, the locomotive of global growth in recent decades, is on track to deliver more.Honey trap: low interest rates seduced firms to bulk up on debt but they could soon be mauled by rising rates and deal a blow to global growth (AFP Photo/STR) Paris (AFP) – The global…

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Snyder’s-Lance stock surges after Campbell Soup’s $4.9 billion buyout deal

“Under terms of the deal, Campbell will pay $50 in cash for each Snyder’s-Lance shares outstanding, which is 6.9% above Friday’s closing price of $46.79” writes Reporter Editor for marketwatch.com. LNCE, +5.34% rallied 5.6% in premarket trade Monday, after the pretzel and chips company agreed to be acquired by Campbell Soup Co. Snyder’s-Lance’s stock had run up 22.0% year to date through Friday, while Campbell shares had lost 18.0% and the S&P 500 SPX, +0.90% had climbed 19.5%.Snyder’s-Lance shares had soared 19% over the past two sessions amid reports that…

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Home prices in Canada are falling, and some homeowners could be in serious trouble

“But the risk appetite in housing continues as the housing & debt bubble ascends to the next level of risk” writes Wolf Richter for businessinsider.com. Canada’s infamous household-debt-to-disposable income ratio, one of the highest in the world, rose to a breath-taking record of 173.3%.Disposable income in 2016 got hit by “a significant downward revision,” based on new data received from Canada’s tax collection agency, Statistics Canada said.Hence the consistently rising and record-breaking debt-to-disposable income ratio above.In a separate report also released on Thursday on the distribution of income and assets, Statistics Canada…

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Fitch upgrades Portugal credit rating to investment grade

“Fitch Ratings hiked Portugal’s credit rating two notches to BBB, returning it to investment-grade status” writes Sunny Oh for marketwatch.com. Large institutional investors like pension funds are often required to abstain from buying bonds ranked below investment-grade.The ratings company justified its move saying they expected government debt levels to fall. Source: marketwatch.com Share This:

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Portuguese bonds climb in anticipation of escape from ‘junk’ status

“The ratings company had kept Portugal on a positive outlook, an indication that they have kept the door open to raising its credit rating” writes Sunny Oh for marketwatch.com. Investors are piling into Portuguese debt in expectation that one of the major ratings agencies will raise its sovereign debt rating to investment-grade status, and therefore making it eligible for bond benchmark indexes.After S&P initiated the move to investment-grade in Sep. 15, Portuguese bonds rallied, pulling the 10-year yield lower by a whopping 37 basis points to 2.42 percent by the…

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These New Yorkers are struggling the most with student debt

“Student debt is typically portrayed as a challenge affecting millennial, often college-educated workers” writes Jillian Berman for marketwatch.com. Student loans can be a useful tool to help students attend college and get ahead in today’s economy.Still, student loan challenges are most severe among low-income borrowers in New York City and at the national level.But a new analysis of student loans in New York City indicates that they can be a particularly acute problem for low-income and older borrowers. Source: marketwatch.com Share This:

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California sues over Corinthian student debt relief claims

“Education department officials earlier this week began negotiating to change federal rules meant to protect students from fraud by colleges and universities” writes The Associated Press for seattletimes.com. More than 50,000 relief claims are pending since the for-profit college collapsed, including 13,000 from Californians, according to the lawsuit Attorney General Xavier Becerra filed in federal court in San Francisco.SACRAMENTO, Calif. (AP) — The federal Department of Education is refusing to process debt relief claims from tens of thousands of students who had federal loans to attend Corinthian Colleges, California’s attorney…

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Here’s who defaults on student loans

“The median debt of borrowers who default is $9,625, $8,500 less than the median debt for borrowers who never defaulted” writes Jillian Berman for marketwatch.com. When the student loan system was first developed, the idea was that low-income students would get help paying for college through grants, while middle-income students would take on some loans and wealthy students would pay their way.The analysis notes that it’s possible borrowers who have taken on loans more recently aren’t struggling as much because of the increased popularity of income-driven repayment plans, which allow…

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