4 results for 'interest rates'
...Crisis of 2008.
There are two important facts about our rising national debt that don’t get a lot of mainstream attention (and I certainly don’t hear the politicians talking about them):
Point #1: With higher national debt comes higher interest payments.
Point #2: Interest rates are rising.
So far this fiscal year, the U.S. government has paid $166 billion in interest payments alone on its national debt. For the entire year, it expects to pay about $420 billion in interest. The more debt we pile on as the years go by, the more interest we will be paying on... (more)
... low-paying retail sector—not a great foundation on which to build sustained economic growth.
Car loans on the other hand…
Not unlike the pre-bubble U.S. housing industry, credit is easy to get—even for borrowers with…wait for it…low credit scores. Thanks to lower interest rates, borrowers of every ilk have been taking on increasing amounts of auto loan debt for roughly three straight years. At the end of 2013, the average auto loan balance was $16,769; in early 2010, auto loan debt hit a low point of $14,734. (Source: Fontinelle, A., “Americans Are Borrowing ... (more)
...is 205%. Hence, if we follow Japan’s example, our debt could double from here.
The U.S. government should hit its debt limit in October. And Congress will increase that debt limit as it always does.
Eventually, the only way to reduce the national debt, especially if interest rates rise, is to raise taxes. But it is a double-edged sword. Raise taxes and you stifle the U.S. economy, as higher taxes negatively affect consumer spending. Don’t raise taxes and you still have a problem with a mounting national debt.
Will the U.S. come out with some law that if a... (more)
It took $4 gasoline to get folks to think about their driving habits. Similarly, it looks like a meltdown of the megabanks and other financial institutions is prompting consumers to think about where they are putting their money, who they can trust and what results they should expect. And much of their hard earned cash is flowing into deposits at community banks:According to the FDIC, banks with less than $10 billion in assets, community banks, have seen an increase in deposit growth this year from a minus 0.77% in Q1 to a positive 2.06% in Q3. Larger banks witnessed a 3.81% decline... (more)
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