News 

Global debt surges to record high $188 TRILLIONS…

“Global debt — both public and private — has reached an all-time high of $188 trillion” reports yahoo.com. International Monetary Fund Managing Director Kristalina Georgieva warns that growing global debt leaves governments and households vulnerable to a rise in interest rates (AFP Photo/NICHOLAS KAMM) The global debt load has surged to a new all-time record equivalent to more than double the world’s economic output, IMF chief Kristalina Georgieva warned Thursday.This amounts to about 230 percent of world output,” Georgieva said in a speech to open a two-day conference on debt.And…

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U.S. Treasury lowers borrowing estimate for fourth quarter

“Treasury borrowed $440 billion in net marketable debt in the third quarter and ended with a cash balance of $382 billion” writes Senior Economics Reporter for marketwatch.com. The U.S. Treasury Department said Monday it expects to borrow $352 billion in the fourth quarter, which is $29 billion lower than previously estimated.Looking ahead to the first quarter, Treasury said it expects to borrow $389 billion in net marketable debt with a cash balance of $400 billion.The decline was driven by a larger cash balance at the beginning of the quarter, the…

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Markets News 

Funding market strains resurface as repo rates stay elevated

“The overnight repo rate spiked as high as 2.26%, according to one estimate” writes Sunny Oh for marketwatch.com. The repo rate usually closely tracks the central bank’s benchmark interest rate as they both are considered sources of short-term borrowing.This compared with the effective fed funds rate, which stood at 1.90% on Oct. 15.Strains in short-term lending markets popped up again on Wednesday as the cost of borrowing funds overnight in return for high-quality collateral, or the repo rate, shot up on Wednesday.Hedge funds and banks use the repo market to…

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US consumer borrowing up $17.9 billion in August

“Consumer borrowing is closely watched for signs it can provide about the strength of consumer spending” writes The Associated Press for seattletimes.com. The consumer borrowing report showed that the $1.9 billion drop in credit card use in August was that category’s weakest performance since a $2.8 billion decline in March.The August changes left total U.S. consumer borrowing at a new high of $4.14 trillion.Total credit rose $17.9 billion after a $23 billion increase in July, the Federal Reserve reported Monday.WASHINGTON (AP) — Consumer borrowing increased at a solid pace in…

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Chicago’s mayor says city has a massive budget deficit

“Mayor Lori Lightfoot in her first state of the city address on Thursday said Chicago will have an $838 million budget deficit for the fiscal year that will begin Jan. 1” writes The Associated Press for seattletimes.com. Lightfoot said the specifics of revenue-raising will come in a budget plan she’ll unveil in October.CHICAGO (AP) — Chicago is in a deep financial hole and the city’s new mayor says it will take more than tax increases and borrowing to close it. Source: seattletimes.com

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Crypto Markets News 

On-chain Crypto Lending: The Path to the Mainstream By Ricky Li, Co-Founder & Head of North America, Altonomy

“Ricky Li is the Co-Founder of Altonomy, a cryptocurrency trading, advisory and asset management firm” writes Ricky Li for cointelegraph.com. But “on-chain” technology could solve another essential, but less recognized, problem: credit.In time, on-chain lending will absolutely go mainstream.To create a truly viable on-chain lending environment, there needs to be a trusted liquidity provider to help the lender manage margins and decrease exposure to market risk.There remain some significant pain points that are holding back “on-chain” borrowing and lending from really taking off and entering the mainstream. Source: cointelegraph.com

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News Regulators 

Consumer credit picks up a bit in January

“Total consumer credit increased $17 billion in January to a seasonally adjusted $4.03 trillion, according to the Federal Reserve” writes Senior Economics Reporter for marketwatch.com. Big picture: Credit growth has been steady, reflecting income growth and consumer optimism.Consumer credit remains “OK for now,” he said in an interview.What happened: Revolving credit, like credit cards, rebounded in January, rising by 2.9% after a 1.1% gain in December.And the Fed’s latest survey of senior loan officers concluded that demand for consumer loans was falling while banks were tightening standards on loans. Source: marketwatch.com

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US debt hits record under Trump, Republicans mum…

“But despite faster growth, the budget deficit climbed 17 percent to $779 billion last year, the worst since 2012” writes Virginie Montet for yahoo.com. “If we don’t have a strong military, you don’t have to worry about debt, you have bigger problems,” Trump told reporters last week.The massive corporate tax cuts that Trump pushed for at the end of 2017, and the surge in spending, especially in defense, have increased the fiscal deficit for the world’s largest economy.The National Debt Clock shows the bad news about US federal borrowing, swelled…

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Hammond set to abandon deficit rule as spending plans and student loans add to borrowing 

“The Chancellor will be forced to abandon another of his borrowing rules because of high spending plans and the extra burden of student debt at his spring statement next month” writes Tim Wallace for telegraph.co.uk. Growth also risks slowing further, potentially harming tax revenues or prompting Philip Hammond to increase government spending. “There is an odds-on chance the Government will miss its fiscal mandate,” said Amit Kara at the National Institute for Economic and Social Research (NIESR), referring to the Chancellor’s target of holding the structural deficit at below 2pc…

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News Regulators 

There’s an upside to rising interest rates, many Americans say

“The Federal Reserve is likely keep to interest rates steady for now, a move cheered by President Donald Trump” writes Jessica Dickler for cnbc.com. People who have savings “are smiling from ear-to-ear every time the Fed raises rates,” said Greg McBride, chief financial analyst at Bankrate.com.Recent signs of rising inflation, which pushed the Fed into hiking rates beginning in 2015, aren’t necessarily bad, investors said.Forty-four percent of those polled by E-Trade said “a better return on my savings” was the most important effect of rising interest rates, while 37 percent…

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