Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Debt’

… The Banks may Not Like It [#Puerto Rico][#debt][#bankruptcy][#default]…

Posted by paulfromwloh on Saturday,January 7th,2017

.. the banks are really going to hate this . But , it will teach them an important lesson about loans and U.S. governments , in particular the states . They will have to book their losses , and quit whining ..

.. Puerto Rico is going to have to be realistic . Their government is far too big . Their debt load is far too large for them to manage properly . also , their scope of their government and services is waaay too broad . Simple , the commonwealth cannot afford the current size of government . Things will have to change ..

.. [h/t — Newsmax.com/Finance]..
.. [link] to the news story ..

.. now , will our Congress create a Chapter 9 style bankruptcy system for the states . Some of them are eventually going to need it .. [read : Illinois] ..

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… Greece is Now in Real Trouble [#the Euro]…

Posted by paulfromwloh on Saturday,June 18th,2016

.. the I.M.F. walking out of talks is not good ..

.. but neither is giving Greece more debt in order to pay off previous debts . That just does not make any sense at all . Extending the maturities will not do enough …

.. [h/t — FinancialTimes.com]..
.. [link] to the blog article …

.. You have to reduce the amount of principal , and , if possible , the interest rates , as well . Greece does not really merit a reduction in the interest rates , though . The principal reduction should do the job ..

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… It is Only a Beginning [#Puerto Rico][#financial control board]…

Posted by paulfromwloh on Sunday,May 29th,2016

.. yes , it is only a beginning . At least both parties are taking Puerto Rico ‘ s problems seriously ..

.. but , ultimately , it is the commonwealth itself that has to govern itself and manage its finances in a proper manner ..

.. default is obviously not an option . Public services are ending . Schools are closing . Bankruptcy is not likely an option , either . Sharp spending cuts will have to be shared by all , including pensioners ..

.. [h/t — Newsmax.com/finance]..
.. [link] to the blog post news ..

.. the spectres of both fallouts will get folks ‘ attention . Whether it will get the attention of Puerto Rico ‘ s political establishment is another matter ..

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… Argentina is Being Stupid [#debt default]…

Posted by paulfromwloh on Thursday,August 7th,2014

.. there are many parts of the debt market ..

.. the Argentines are going to have to deal with them . Even the vultures …

.. [h/t — BloombergNews.com]..
.. [link] to the news piece ..

.. Argentina defaulted more than once before . They have to answer for it . They have made a debt payment , but not to the ” vultures . ” They have to make a ” final ” deal with them , in order to revise the country ‘ s finances …

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… This is Completely Irresponsible , Insane [POTUS EO on Student Loan Debt]…

Posted by paulfromwloh on Tuesday,June 24th,2014

.. most of all , it is illegal .

.. Those dummies should read the Constitution . Congress authorizes the issuance and terms of debt . POTUS signs the legislation , and ” faithfully carries it out . ” Which means according to the terms set in the law , not by Obama executive fiat . That includes , of course , Student Loan debt . Learn how to read , you idiots …

.. [h/t — theRightScoop]..
.. [link] to the press conference segments …

.. POTUS cannot unilaterally change the terms of laws . Our system of government just does not work that way . It never has , and it never will …

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… No , You Idiot [#Chris Hayes is a Moron]…

Posted by paulfromwloh on Friday,April 18th,2014

.. it is because the Medicaid expansion is a bad deal for the states ‘ budgets …

.. [h/t — hotair]..
.. [link] to the blognews…

.. the states that refused to expand Medicaid do not trust the Federales to keep their end of the bargain , Chrissie ! … the states generally (with 2 or 3 exceptions) have balanced budget amendments . They have to balance their budgets every year . They also have to deal (first hand) with the ” Medicaid Monster ” and the effect on their state budget …

.. the Feds have supposedly made a promise . Yea , they have made those kind of promises before . Guess what happens ? They are not kept , and the states are left financially holding the bag for the ” unfunded mandates ” that the Feds stick them with …

.. eventually the Feds are going to get a financial reality check in dealing with ObamaCrapCare and its expenses . When the budget cutting comes , the effects of it are not going to be pretty . Worse yet , people are going to be screaming bloody murder over it , and the people who die as a result . Then there will political hell to pay for it . Guess who gets it ? not the GOP … you got it , the DemoCraps will catch hell …

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… Gotcha ! [Moody s Investors Services Shutdown & Default memo news]

Posted by paulfromwloh on Wednesday,October 9th,2013

… exactly as I thought ! …

… and this financial opinion comes from a professional financial firm …

.. SecTreas and POTUS were / are lying ..

..  Moody’s says that the U.S. Treasury Department can continue paying interest on the government’s debt even if Congress fails to raise the debt limit, preserving the nation’s sterling AAA credit rating.

.. In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

.. ” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

The Moody’s memo goes on to argue that the situation is actually much less serious than in 2011, when the nation last faced a pitched battle over the debt limit.

“The budget deficit was considerably larger in 2011 than it is currently, so the magnitude of the necessary spending cuts needed after 17 October is lower now than it was then,” the memo says.

Treasury Department officials did not immediately respond to requests for comment.

.. LEC again — Busted !! … Those idiots got caught in the act . Moodys , S&P (Standard & Poor s) , and others have done this stuff for centuries . They know their business , they do thorough research (legal & financial) , and know what they are talking about . I figured that something like this would emerge , but not from which firm , or when .

.. They want to protect their backers ‘  fannies . Also , their subscribers value this kind of info . It is what they are in this business for .

.. POTUS and SecTreas (Lew) should have known better . They have , or should have had , top legal minds to tell them this stuff . They went out , and lied about it , anyway ….

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… Earth to POTUS : Open Your Ears ! …

Posted by paulfromwloh on Thursday,September 19th,2013

.. in a speech at the Business Roundtable , POTUS said that raising the debt ceiling does not raise the debt . Well , guess what , POTUS ?

.. [link] ..

.. Oh , yes it does , you damn fool . What do you think those $1 trillion plus deficits the last couple of years are for , you bloody idiot . The debt ceiling prevents you from doing so . Raising it allows you to continue to do so . Get with the program …

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