World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Debt's Deadly Grip
Keywords:
The first of a series of quarterly reports put out by the Federal Reserve Bank of New York, on the subject of household debt and credit. It shows that the process of unwinding consumer debt in the US is a slow and painful one. The figures tell the story, which touch every aspect of the US economy and business, with ripple effects through the world economy. Total consumer debt is $11.7 trillion as of June 30, 2010, which is down 6.5% from the crest reached in the third quarter 2008. Credit card accounts are down 23% from the high reached in second quarter 2008, and mortgage obligations down 6.4% from 2008. By mid 2010 11.4% of consumer debt was delinquent, and this was up from 11.2% in 2009. $1.3 trillion of consumer debt is delinquent, and $986 billion is seriously delinquent- that is 90 days late. Serious delinquencies are up by 3.1%. Other figures fromt he Fed report: Half million people in the USA had a foreclosure added to the credit reports for the period March 31, 2010 to June 30, 2010. This was up 8.7% above the figure for first quarter of 2010. New bankruptcies showed up in credit reports for 624,000 people during that quarter, an increase of 34%. Another major problem stacked on top of this for consumer spending- the Fed's interest rate policy according to Todd Petzel, chief investment officer of Offit Capital Advisors, burdens consumers with a tax of $350 billion in income lost from low to zero interest rates. This creates two problems of its own. Not only does it depress consumer spending. It also makes consumers reach out for riskier investments. This figure was calculated by taking $14 trillion in debt issued by Treasury, federal agencies and municipalities. Rates are near zero on short term Treasuries compared to 3% average over the years. Taking 2.5% on $14 trillion, the figure of $350 billion was arrived at. Or 2% of gross domestic product. Analysts say that it would be better not to save a few zombie banks at the expense of consumers and pension funds. It lowers the cost of the deficits through the lower interest rates the government pays on its debt, but lower consumer spending and a limping economy hurt tax revenues and increases the deficit.
Comparisons of the U.S. Economy with Japan, considering the Federal Reserve's easy money policy and little lending by banks.
10/15/2009
Is the US economy already in a liquidity trap with exploding monetary growth and little consumer lending asks Christopher Wood. Views of other experts on the subject.
Grouped Articles
Target Is 'Flexible,' Says Japan Bank Chief
Wall Street Journal 04/12/2013
Japan Is a Model Not a Cautionary Tale
New York Times 06/09/2013
Sluggish Economic Recovery Proves Resilient
Wall Street Journal 04/21/2014
Is the U.S. Economy Turning Japanese?
Wall Street Journal 10/27/2009
Economist 10/15/2009
Wall Street Journal 12/08/2009
The Frugal American Customer
01/06/2009
Trends observed by Walmart and other stores. Observations by others. Frugal U.S. consumers and shoppers.
Grouped Articles
Target Bets Credit Discount Will Lead to More Visits
Wall Street Journal 06/22/2010
Shoppers Still Stick To Payday Purchases
Wall Street Journal 08/30/2010
Philips's CEO Urges Local Strategies for Emerging Markets
Wall Street Journal 08/30/2010
Wal-Mart Angles to Keep Those Who Traded Down
Wall Street Journal 10/02/2009
More Ads for Basic Brands as Shoppers Spend Less
New York Times 10/07/2009
Retail and the Rise of the Frugal Consumer
Wall Street Journal 10/07/2009
Consumer credit for struggling families- looking at the the other side of the bailout.
10/10/2009
Grouped Articles
The 'Democratization of Credit' Is Over -- Now It's Payback Time
Wall Street Journal 10/10/2009
New York Times 08/21/2010
U.S. poverty rate reaches 15.1 percent - The Washington Post
Washington Post 09/13/2011
New York Times 10/11/2011
Frugality at the retail level- and competition in pricing.
10/06/2009
Grouped Articles
Target Bets Credit Discount Will Lead to More Visits
Wall Street Journal 06/22/2010
BusinessWeek 07/29/2010
Shoppers Still Stick To Payday Purchases
Wall Street Journal 08/30/2010
Philips's CEO Urges Local Strategies for Emerging Markets
Wall Street Journal 08/30/2010
Wal-Mart Sharpens Its Pricing Pincers
Wall Street Journal 10/06/2009
Spendthrift to Penny Pincher: A Vision of the New Consumer
Wall Street Journal 12/18/2009
The U.S. federal mortgage loan modification program in 2010.
06/12/2009
The dim prospects for mortgage loan modification programs of the Obama administration. Two out of three loan modifications under the federal Home Affordable Modification Program (HAMP) program expected to fail, and the failure under HAMP to move quickly by dealing directly with homeowners.
Grouped Articles
Wall Street Journal 12/31/2013
The Case Against the Bernanke-Obama Financial Rescue
New York Times 05/16/2014
High Default Rate Seen for Modified Mortgages
Wall Street Journal 06/16/2010
New York Times 08/21/2010
Obama Successes Outweighed by Job Losses
New York Times 10/26/2010
State Attorneys General Take Helm in Mortgage Mess
New York Times 10/29/2010
Business credit card debt surge and rising default means the 27 million U.S. small business owners are less likely to hire
07/05/2008
Between 2000 and 2009 there was a sixfold jump in the number of business credit cards to 29 million and the debt on these cards jumped four fold to $296 billion. Small business owners acquired the bad habit of using these cards for operating expenses. with rising default rates, small businessowners are less likely to hire and create jobs as they have done before.
Grouped Articles
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Big Banks Cut Back on Loans to Small Business
Wall Street Journal 11/27/2015
Credit Card Overhauls Seem Likely
New York Times 07/05/2008
New Indian Middle Class Gets Caught In the Whirlwind of Revolving Credit
Wall Street Journal 10/28/2008
AmEx Gets Access to Bailout Fund
Wall Street Journal 11/11/2008
Risky Business for AmEx Holders
Wall Street Journal 11/12/2008
Need to roll over short term debt of close to $4 trillion will limit growth in the U.S. and Europe.
07/11/2010
A trend to short term borrowing and the competing role of banks and sovereign governments in bond issuance, is likely to put additional stress on capital markets worldwide. This is true especially in Europe which has $2.6 trillion to roll over by 2012, according to analysts. The stress will ber greater on less healthy financial institutions in Europe.
Grouped Articles
Sovereign-debt managers: Rollover roulette
Economist 10/16/2010
How Righteousness Killed the World Economy
New York Times 10/12/2014
Crisis Awaits Worldâs Banks as Trillions Come Due
New York Times 07/11/2010
New Doubts on EU Bank Stress Tests
Wall Street Journal 07/20/2010
New York Times 08/21/2010
Tom Keene Talks with David Stockman
BusinessWeek 08/12/2010
Steps to take to prevent a new financial crisis.
10/23/2009
Views of Alan Meltzer and others. Steps that would reduce deficits, reverse excessive easing gradually and early, without hurting a weak economy. Lack of action could blow ahole in the dollar and start a downturn say some experts.
Grouped Articles
Preventing the Next Financial Crisis
Wall Street Journal 10/23/2009
Is the U.S. Economy Turning Japanese?
Wall Street Journal 10/27/2009
The Other Plot to Wreck America
New York Times 01/10/2010
New York Times 08/21/2010
Financial Crisis Was Avoidable, Inquiry Concludes
New York Times 01/25/2011
John Taylor: The Republicans' Shadow Fed Chairman
BusinessWeek 01/20/2011
Deflation threat in the U.S. in 2010.
05/27/2010
Negligible growth in incomes and the lowest increase in the consumer price index since 1962, with the eurozone crisis overhang, pose threat of deflation.
Grouped Articles
Risk of Deflation Feeds Global Fears
Wall Street Journal 10/16/2014
The Recovery: Why Deflation Remains a Threat
BusinessWeek 05/27/2010
Real Disposable Income: Bad News for Democrats?
BusinessWeek 06/03/2010
New York Times 07/11/2010
Economists React: How Big a Threat Is Deflation?
Wall Street Journal 07/16/2010
Fed’s Bullard Raises Policy Concerns
Wall Street Journal 07/29/2010
The bailout and the Federal Reserve's infusion of cheap money are having unintended effects.
01/20/2009
One impact is that a few securties firms are making large profits even as the smaller banks are failing, banks like Citigroup and Bank of America are suffering losses, and the banks that were "too big to fail" are actually becoming larger. The Fed's infusion of money is not helping small and medium sized businesses with credit, as the smaller banks that lend to these businesses -as Ms. Lee points out- are not getting credit and are laying off people. This is setting off a vicious cycle of shrinking employment and shriking consumer demand.
Grouped Articles
How the Fed Can Avoid the Next Bubble
Wall Street Journal 10/06/2009
Recession Spells End for Many Family Businesses
Wall Street Journal 10/06/2009
Taking the National Debt Seriously
Wall Street Journal 10/12/2009
Steven Pearlstein - Don't Reinflate the Old Bubbles
Washington Post 10/14/2009
Financial-Services Regulation Fuels Tiff
Wall Street Journal 10/14/2009
That Promised Financial Reform
New York Times 10/14/2009
Wal-Mart and moves into convenience retailing with small format stores
05/28/2010
In response to customer preferences and moves by Tesco, Wal-mart Asda has opened smaller stores of 8000 square feet. It also acquired Denmark's Netto chain.
Grouped Articles
Wal-Mart's Big-Box Formula Comes Under Strain
Wall Street Journal 02/21/2014
Wal-Mart Looks to Grow by Embracing Smaller Stores
Wall Street Journal 07/08/2014
Wal-Mart Warns of Rough Patch for Sales, Profits
Wall Street Journal 10/16/2014
Wal-Mart U.K. Deal Fits Goal: Go Small
Wall Street Journal 05/28/2010
New York Times 08/21/2010
Wal-Mart Sees Small Stores in Big Cities
Wall Street Journal 10/13/2010
Thrift and value purchases are the major trend in electronic retailing
09/30/2009
The electronic book reader is the new product that Best Buy is aggressively pushing this season.
Grouped Articles
Underdog Against Amazon, Best Buy Charges Ahead
New York Times 12/13/2013
Gadget Sellers Brace for Ho-Hum Holiday
Wall Street Journal 09/30/2009
Profit Rises at Best Buy, but Margins Are a Worry
New York Times 12/16/2009
Fragile Label On Best Buy's Market Share
Wall Street Journal 12/16/2009
Gadget Deflation Hurts Sellers
Wall Street Journal 12/16/2009
BusinessWeek 12/10/2009
America's long term debt crisis.
10/01/2009
A chronic situation from which it will be hard to get out of with sluggish growth and deflationary trends.
Grouped Articles
Economist 11/13/2009
Economist 10/01/2009
Calling on Congress to stop the debt tsunami
Washington Post 12/18/2009
New York Times 08/21/2010
Tom Keene Talks with David Stockman
BusinessWeek 08/12/2010
Washington Post 08/07/2011
Debt, health care, other issues and the 2010 Congressional elections.
12/18/2009
Republicans and Democrats position themselves on issues such as debt, health care as they go in to the 2010 elections.
Grouped Articles
Angry Liberals Edge Toward a Mutiny
Wall Street Journal 12/18/2009
Both Parties to Highlight Bill in Bid to Win Over 2010 Voters
Wall Street Journal 12/26/2009
Doctors Chafe As Medicare Cuts Loom
Wall Street Journal 06/16/2010
New York Times 08/21/2010
Tom Keene Talks with David Stockman
BusinessWeek 08/12/2010
In Battle Over Health Law, Math Cuts Both Ways
New York Times 01/07/2011
Martin Feldstein on the risks for the American Economy after failures in the Obama Economic plan.
09/12/2007
Failures to address problems on the housing front, especialy the problems for 15 million homeowners under water- see the links to opeds by Feldstein suggesting focus on these issues throughout 2008-2009. And the focus on health care which diverted attention from this problem and the problem facing bad loans in commercial real estate. Other problems are failure to get bank lending up for businesses. And the failure of Obama health care plans to control the increase in the nation's surging health care spending, instead increasing the deficit to unsustainable levels. Public sentiment as shown in WSJ/NBC polls confirm Feldstein's sense of the situation.
Grouped Articles
New York Times 12/08/2013
From President Obama, Economic Clarity but Little Courage
Washington Post 04/15/2009
Wall Street Journal 09/12/2007
How to Stop the Mortgage Crisis
Wall Street Journal 03/07/2008
Wall Street Journal 02/20/2008
Enough With the Interest Rate Cuts
Wall Street Journal 04/15/2008
The Bush tax cuts in 2010.
08/05/2010
In the face of rising deficits, and questions about the future solvency of Medicare and Social Security, there are questions about the Bush tax cuts which expire in December 2010 if not renewed. With high unemployment the consensus seems to be to leave the tax cuts in place for a limited period, and have serious conversation about taxes when a new presidential term begins. A Value added Tax has been suggested by Paul Volcker, similar to that in Europe.
Grouped Articles
The Wisdom and Folly of the Bush Tax Cuts
BusinessWeek 08/05/2010
New York Times 08/21/2010
Bush Tax Cuts: Now That's Rich
New York Times 08/22/2010
Why the Rich Donât Need a Tax-Cut Extension
New York Times 09/25/2010
Tax-Cut Vote Shows Democratic Divide
Wall Street Journal 12/03/2010
New York Times 12/02/2010
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us
