Category Archives: Business & Economy

Budget Deficit Surges to Record $1.7 Trillion in Just Six Months

Budget Deficit Surges to Record .7 Trillion in Just Six Months

The US government ran a budget deficit of $659.59 billion in March, pushing the budget shortfall to a record $1.7 trillion through the first half of fiscal 2021, according to the Treasury Department’s Monthly Treasury Statement. The March budget deficit ranks as the third biggest monthly shortfall in US history, driving Uncle Sam the biggest half-year deficit ever.

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Cash-Out Home Refinancings Hit Highest Level Since Global Financial Crisis

Cash-Out Home Refinancings Hit Highest Level Since Global Financial Crisis

In addition to boosting both bonds and stocks, the rigging of interest rates by hapless central bank has homeowners drawing on cash out refinancing’s at the quickest clip since the global financial crisis. $152.7 billion was cashed out in home equity last year, up 42% from 2019 and the most since 2007, according to the Wall Street Journal.

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Texas Frozen Chaos Becomes Global Oil Market Nightmare With 40% Of US Crude Production Offline

Texas Frozen Chaos Becomes Global Oil Market Nightmare With 40% Of US Crude Production Offline

Even though Texas is doing everything in its power to contain the fallout that, it appears that the crisis is now spreading, because as a result of the persistent freeze and rampant “force majeueres” across the industry, more than 4 million barrels a day of output – almost 40% of the nation’s crude production – is now offline.

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“Supply Is Frozen” – Polar Vortex Sparks Massive Spike In NatGas/Electricity Costs

“Supply Is Frozen” – Polar Vortex Sparks Massive Spike In NatGas/Electricity Costs

The week’s biggest story is the plunge in temperatures across the Great Plains from Canada to Texas, resulting in skyrocketing demand for natural gas and electric markets as tens of millions of Americans crank up their thermostats to stay warm. And that surge in energy costs comes at a time when incomes/jobs remain suppressed and Americans are being told to stay indoors.

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US Budget Deficit Triples To Record $3.1 Trillion In 2020 As US Spends 90% More Than It Collects

US Budget Deficit Triples To Record $3.1 Trillion In 2020 As US Spends 90% More Than It Collects

Those who have been following the record surge in US public debt (excluding the roughly $100 trillion in off-balance sheet obligations), which exploded by $3 trillion in the three months following the covid shutdowns and which just hit an all time high $27.1 trillion this week, will be all too aware that the US budget deficit this year – and every year after – will be staggering.

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Americans Burn Through A Staggering $724BN In Annualized Savings In August As Stimulus Fades

Americans Burn Through A Staggering $724BN In Annualized Savings In August As Stimulus Fades

Lower income coupled with higher spending in a time when the vast majority of Americans were looking forward to more stimulus meant that US consumers rapidly burned through savings. At the same time, the personal savings rate collapsed by 17.7%. This means that a whopping 60% of the personal savings built up in the aftermath of the COVID fiscal stimulus tide have now been used up. So, unless a new fiscal deal is in place, US consumption will crater unless somehow the millions of unemployed workers who still desperately rely on government stimulus find a job.

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Banks Brace For Default Wave: Wells Fargo Stops Making Loans To Independent Car Dealers

Banks Brace For Default Wave: Wells Fargo Stops Making Loans To Independent Car Dealers

In the latest indication that banks are bracing for even more default pain, this time stemming from what even before the coronavirus crisis was the next subprime disaster-in-waiting, namely auto loans. According to CNBC, Wells Fargo is hitting the brakes on its auto loan business, until recently a major source of revenue for the company.

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