• EconMatters
    04/27/2015 - 14:18
    If the DOJ and CFTC is going to be consistent, then they have to indict the entire financial community from the CME, Exchanges, Brokers, Institutions, Investment Banks, Hedge Funds, Management Funds...

St Louis Fed

St Louis Fed
Tyler Durden's picture

Meet IBR, The Student Loan Bubble's Dirty Secret





Some borrowers are allowed to remain in a perpetual state of default even as they avoid actual payment default and in the end, their loans are legally discharged at the expense of the US taxpayer. Meanwhile, the payments they aren't making appear to be classified by the Department of Education as both "in repayment" and "current." 

 
Tyler Durden's picture

It's Not Just The Students Who Are Broke: LSU Draws Up Bankruptcy Plan





"Louisiana faces a $1.6 billion budget shortfall in the coming fiscal year, a result of both plunging oil-tax revenue and the state’s failure to enact adequate tax increases or spending cuts after the economic downturn in 2009. The latest plans would mean an 82 percent cut to the state’s public colleges and universities."

 
Tyler Durden's picture

From Delinquent To 'Seriously' Delinquent: Another Worrying Trend For Student Debt Revealed





Recently, we noted that once America’s best and brightest come out of deferment and forbearance, one in three quickly fall 30 days or more behind on their payments. Now we learn that not only are delinquency rates on the rise, so too apparently, is the percentage of delinquent borrowers who have simply stopped making payments, late or not.

 
Tyler Durden's picture

Is The Student Debt Bubble About To Witness Its 2007 Moment?





Moody's puts $3 billion in student debt-backed ABS on default watch leading us to wonder when 30% delinquency rates in a market where nearly $1.3 trillion in credit has been extended will finally result in the bursting of what is America's most spectacular debt bubble.

 
Tyler Durden's picture

With Futures On The Verge Of A Major Breakout, Greece Drags Them Back Down; German 10Y Under 0.1%





Just as the S&P appeared set to blast off to a forward GAAP PE > 21.0x, here comes Greece and drags it back down to a far more somber 20.0x. The catalyst this time is an FT article according to which officials of now openly insolvent Greece have made an informal approach to the International Monetary Fund to delay repayments of loans to the international lender, but were told that no rescheduling was possible.  The result if a drop in not only US equity futures which are down 8 points at last check, but also yields across the board with the German 10Y Bund now just single basis points above 0.00% (the German 9Y is now < 0), on its way to -0.20% at which point it will lead to a very awkward "crossing the streams" moment for the ECB.

 
Tyler Durden's picture

"Staggering" Student Loan Defaults On Deck: 27% Of Students Are A Month Behind On Their Payments





A new St. Louis Fed study finds that the delinquency rate for student borrowers in repayment is 27.3%, meaning nearly one in three of the Americans laboring under a debt load that has now swelled to $1.3 trillion are more than a month behind on their payments. Ackman says there's "no way they are going to pay it back." We can hear the "cancel the debt" cries now. 

 
Tyler Durden's picture

Chart Of The Day: Is The US Already In A Recession?





While everyone is focusing on tomorrow's Nonfarm Payrolls number, the far more important number is today's Factory Orders data (because it is far less fuged, adjusted and generally doctored to preserve faith in a contracting economy). Because according to America's manufacturing output, not only is the country already in a recession but it is getting worse with every passing day.

 
Tyler Durden's picture

Some Folks At The Fed Are Lost - No Juice To The Macros, Part 1





Does it really take purportedly intelligent people six years to see that the macros are not responding? Better still, isn’t it time for the Fed to explain the exact channel by which its interest rate pegging and forward guidance is supposed to be transmitted to the main street economy? After all, if these channels are blocked or ineffective - then its flood of liquidity never leaves the canyons of Wall Street. In that event, the central bank actually functions as a financial doomsday machine, inflating the next financial bubble until it bursts. Then, apparently, its job is to rinse and repeat.

 
Tyler Durden's picture

Without Buyback Back Up, Futures Fail To Find Fizzle





After three days of unexpected market weakness without an apparent cause, especially since after 7 years of conditioning, the algos have been habituated to buy on both good and bad news, overnight futures are getting weary, and futures are barely up, at least before this morning's transitory FX-driven stop hunt higher. Whether this is due to the previously noted "blackout period" for stock buybacks which started a few days ago and continues until the first week of May is unclear, but should the recent "dramatic" stock weakness persist, expect Bullard to once again flip flop and suggesting it is clearly time to hike rates, as long as the S&P does not drop more than 5%. In that case, QE4 is clearly warranted.

 
Tyler Durden's picture

The Mystery Of America's Missing Wage Growth Has Been Solved





Dear Federal Reserve, we have just solved the biggest riddle that your "smartest economist PhDs in the room" have been unable to figure out for the past year...

 
Tyler Durden's picture

Chart Of The Day: Recession Dead Ahead?





The past two times US manufacturing orders declined at this rate, the US economy was already in a recession.

 
StalingradandPoorski's picture

Irrational Exuberance 2.0





What people and central bankers do not understand, is that you can't devalue your way to prosperity. Absolutely nothing has changed since the last crisis. The same too big too fail banks have only gotten much bigger. The same people that were in charge leading into the crisis and during it, are the same people who are in charge of fixing it. New regulations were established to try and regulate the industry, but they will be proven to be ineffective. Why? Because the Volcker Rule and Dodd-Frank have had all the important elements removed, thanks to the massive lobbying power of the TBTF banks and the Fed.

 
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