Financial News

Small Business Optimism Index Increased to 102.4 in October

Small business owners’ business optimism outlook increased by 0.6 of a point in October. The biggest issues identified by business owners is finding qualified labor. CalculatedRISK has an interesting article outlining this issue. (article published November 12, 2019)

American’s Consumer Debt Hits $13.95 Trillion

Consumer debts have hit almost $14 trillion with home mortgages taking approximately 66% of the debt. The biggest shift in debt since the securitized mortgage meltdown is in student loan debt, which has doubled and is now the second-largest consumer debt. For more information, check out the Reuters.com article. (article published November 13, 2019)

More People Are Finding Themselves Underwater On Their Vehicle Loans

The Wall Street Journal has a great article detailing the problems with trading in your old vehicle to purchase a new one. Over 33% of the people who traded in their vehicles in the first nine months of 2019 find themselves underwater (negative equity) on their loans. (article published November 9, 2019)

It Might Be Time To Tighten The Purse Strings

Two-thirds of all big cities are predicting a recession, while the Midwest is financially declining. A few of the indicators of a possible recession are the slowing general fund revenues, weakening property tax receipts, and the beginning of spending growth being outpacing by revenue growth. For more information on this matter, please visit nlc.org. (article published October 28, 2019)

The Federal Reserve Cuts Interest Rates Once Again But States The Cuts May Stop In The Near Future

The Central Bank lowered its benchmark funds, which are those that banks charge each other for overnight lending, by 25 basis points. The new range is between 1.5% and 1.75%. To read more about how this will affect most forms of revolving consumer debt, please visit cnbc.com. (article published October 30, 2019)

Treasury Department Is Rolling Back Regulations Meant To Keep Corporations From Moving To Other Countries

In this article, the NYTimes.com discusses how the Treasury Department is rolling back regulations meant to stop corporate inversions. The current administration calls the rules a redundancy since the tax breaks are intended to curtail corporations from moving outside the United States. However, it appears the corporate tax breaks are doing little to stop corporations from moving. [article published October 31, 2019]

Personal Loans Are Outpacing Credit Cards And Auto Loans As The Fastest-Growing Debt Category

Axios.com has an interesting article discussing wages vs. cost of living for the lower and middle-income households between 2008 and 2018, and how the disparity is pushing people to obtain personal loans to pay their bills. [article published October 30, 2019]

Student Debt Nearly Doubles U.S. Housing Market

Student loans have reached $1.5 trillion, with Millenials making up approximately 34 percent of the total student borrowers. Montanans have roughly $3.3 billion in student loans, with 111,000 student loan borrowers. The average debt per borrower is $29,837. Please visit realtor.com if you would like a better understanding of this financial problem plaguing our economy. [article published October 15, 2019]

Easing Derivative Rules For Banks

The Federal Reserve proposed a rule to relax the cash reserve requirement for derivative trades between affiliates. Please visit Reuters.com if you would like to read more about it. [article published October 28, 2019]

Online Installment Loans

The online installment loan is the new vehicle used by subprime lenders that are strapping the middle class with large sums of debt. This new vehicle appears to have taken the place of the dwindling payday-loan market. Please visit Bloomberg news to read more about it. [article published October 29, 2019]

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