Debt Consolidation USA Agrees with the Report that Student Debt may not be Doing the Economy any Good


New York, NY (PRWEB) April 20, 2013

Student debt is continually making headlines and this time, as Washington Post reports in April 17, the overall economy may be in danger because of this credit problem. Although graduates have something to rejoice over, their debts are not part of it. The economy may be steadily improving but it is too slow to be able to keep up with the debt troubles of the average American.

The article is boldly titled as High student debt is dragging down the US economy and with the statistics shown, it describes the scenario perfectly. The article cites various figures from another report from the Federal Reserve Bank of New York entitled Young Student Loan Borrowers Retreat from Housing and Auto Markets.

The Federal Reserve states that over the past decade, student loans have gone past credit card debt and auto loans, among others. What is really alarming is the fact that those with student debt seem to be unable to invest in their own homes and vehicles. This shatters the perception that a degree will guarantee more growth in a consumers personal wealth.

It is reported that in 2012 that there are 2 percent more homeowners for non student debtors as compared to those with debt. The same is true for vehicle owners wherein more people without student debt owns one as compared to the other. These statistics are for those between the age of 25 and 30.

The lack of personal investments will drag the economy down in one way or the other. The housing market is just steadily rising and if the incoming generation will not change their perception of student debts and its effects, all of these statistics could get worse.

Debt Consolidation USA, the leading information and referral source for debt relief services, agrees with the report that student debt poses a serious threat to the nations still struggling economy. This is why the company is bent on developing a website that will serve as a one-stop resource that debtors can go to for advice.

The company believes that adequate information about debt will lead people to stop incurring debts in the first place. Relative to that, DebtConsolidationUSA.com is commited to providing helpful articles that will assist any debtor in finding debt help. There are many options but debtors should know how to choose the right one that their finances can afford.

DebtConsolidationUSA.com offers debt consolidation services that intends to work with consumers to achieve a debt free life. This is done through a thorough financial analysis, customized debt relief plan and a sincere intention of educating clients with the right financial management skills that will help them make better choices in life.

To know more about debt consolidation and how it can help with various debts, visit their website.








Economy Predictions: Obamas Keynesian Economic Plan We Cant Cut Our Way To Prosperity and Austrian Predictions For Americas Future


San Diego, CA (PRWEB) November 19, 2012

Obamas recent words, We cant cut our way to prosperity echoed a continuing debate between Keynesian economics and Austrian economics. With the upcoming fiscal cliff, many are worried about an upcoming economic crisis. Which economic philosophy is better at predicting the economys future? Success Council, a group teaching people how to prepare, protect their assets, and profit from an economic collapse, just released on online video containing the answer: Austrians. Austrian economists predicted the burst of the housing bubble, the 2008 stock market crash, and are calling for another huge economic collapse on the coat tails of Obamas election.????

In fact, in 2001, Ron Paul, a libertarian and former Republican Party presidential hopeful, predicted the housing bubble collapse saying:

the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under the pure market conditionsLike all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as the their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.

And why didnt President Obama or former candidate Mitt Romney know what Ron Paul knew about the housing bubble? Simple: They are Keynesians in their economic philosophies.

According to Wikipedia, Keynesians believe that the government should be involved regulating economies and stimulating industries. While Austrians believe in the purest form of free market.

With hauntingly familiar words, Dr. Paul warns us again that the United States is headed for the same fate as Greece or Spain. Dr. Paul recently said, We are so far gone over the fiscal cliff that it really didnt matter who was elected.

He also commented that the election was largely irrelevant because of the similarities of the candidates: 1) both waging wars we cannot win or afford; 2) both stomping on civil liberties through acts such as the NDAA; and 3) neither candidate making any real headway to reduce the deficit.

In his farewell speech to congress, Ron Paul continued to warn, “A dollar crisis will bring the current out-of-control system to its knees.”

The economic predictions are clearly explained in Success Councils, newly released video.

So whats coming now that Obama has won the election? You guessed it: More spending. Obama remarked on Friday that, We cant cut our way to prosperity. Implying we can somehow spend our way to prosperity.

So, what are the libertarians predicting: huge debt, huge inflation, and a crash.

And like America, the European Union (EU) is suffering a similar fate because of its debt obligations. And according to The Herald website, the EU has recently downgraded its economic forecast for the 27 country bloc. Due to its incredible debt obligations, the European Commission warns the economy will decline further, and recover more slowly.

The Herald website reports that the Commission confirmed its prediction that the 17 countries that use the euro will slide into recession this year[.]

On Wednesday November 7, the day after Obama was elected, gold prices rose as the stock market sank. According to the Wall Street Journal, the stock market will continue to sink as the US looms towards a fiscal cliff.

This fiscal cliff is set to hit January 1, 2013, as Bush tax cuts expire along with mandatory domestic spending cuts. The Washington Post reports that This would be the single largest act of debt reduction in American history, cutting some $ 1.1 trillion from the deficit in the next two years.

However, despite these massive cuts (which Obama has already vowed not to let happen), the Post reports: Budget experts say that no matter what Congress and President Obama decide to do about the fiscal cliff this winter, the national debt will keep rising and the U.S. government will soon hit its borrowing limit.

What does this mean? 1) Another increase in the deficit ceiling; 2) possibly another downgrade in the U.S.s credit rating; and 3) of course, printing more dollars. The effect? Your dollars are now worth less because there is less worldwide faith in them and there are many, many more of them.

Who could have predicted this? Well, according to Success Councils video Austrians did predict the upcoming economic collapse.

And more importantly, what can you do to disconnect your wealth from the dollar? You can attend a free online training on how to profit and prosper when the economic crisis hits.

About Success Council:

Success Council was founded in 2012, with the goal of teaching people how to protect their assets and profit from the greatest wealth transfer in history. Their mission is to: 1) Educate 10 million people through their online interactive training events; 2) Make 100,000 families wealthy through the information contained in their Members Area; 3) Create 5,000 leaders armed with the knowledge, skills and resources based on the fundamentals of liberty; and the ultimate goal, is to 4) Create One Free Society.








The Coming Collapse of China — Not!

English: Morgan Stanley's office on Times Square

Morgan Stanley: Its advice on one of China’s most blatant securities frauds left many U.S. investors feeling blue.  (Photo credit: Wikipedia)

I participated yesterday in a discussion of the recently fashionable view that China is on the brink of economic collapse. This theory has already done much to assuage Americans’ concerns about their nation’s faltering economic prowess — but it will take more than talk to wish away the China challenge.

As I pointed out in yesterday’s session,  which was broadcast by Huff Post Live,  discussions of collapse in China conflate  two quite different issues: one is the fate of Chinese asset values and the other  that of China’s real economy. I am an agnostic on Chinese asset values but my view on the real economy is the same one I have espoused for two decades: China’s GDP growth should remain super-fast well into the 2020s. To be sure  the immediate outcome is clouded by continuing weak demand in China’s main export markets in Europe and the United States but these problems hardly speak to  Chinese failings. The fundamental driver of Chinese GDP growth remains in place: catch-up. China can readily continue to boost its output at remarkable rates simply by copying tried-and-tested production techniques and organizational methods learned from the United States, Japan, and Europe. Thanks to a super-high national savings rate, Chinese manufacturers can keep jumping to ever more productive machinery every couple of years. The net effect  is that though per-capita output in China is still little more than one-sixth of First World levels,  there is plenty of room for further improvement. It doesn’t hurt that hundreds of foreign corporations, lured by visions of a slice of the Chinese market, are falling over themselves to bring their most productive manufacturing technologies to the Middle Kingdom.

What of Chinese asset values? They  certainly seem rich. But that observation could have been made a decade ago and indeed two decades ago. At some point there will be a truly painful correction but anyone who shorts Chinese stocks may have a long wait.

This is hardly an argument to buy Chinese stocks, however. Quite simply the problem is Chinese accounting. Although many — perhaps most — Chinese corporations will probably deliver on the stock market’s high expectations, there have been far too many accounting miscues in recent years. It does not help that some of these seem to have been deliberately  intended to rip off unwary American investors. Even some of  America’s erstwhile “most respected” securities houses have been taken for a ride. It is worth remembering Hong Kong-based Longtop Financial Technologies, for instance. Its 2007 IPO was underwritten by Goldman Sachs and Deutsche Bank.  Even after the auditors reported evidence of massive fraud, Morgan Stanley discounted the suggestions and recommended using  the stock’s subsequent swoon as a buying opportunity. Similarly American investors have been left holding the bag after revelations of accounting mishaps at such Chinese companies as CleanTech (CLNT), SunTech (STP), and China MediaExpress (CCME).

The conclusion is that though China will continue to thrive, it affords few opportunities for  prudent investors.

 

 


Frontrunning: September 25

  • China carrier a show of force as Japan tension festers (Reuters)
  • Draghi Rally Lets Skeptics Dump Spain for Bunds (Bloomberg)
  • China’s Central Bank Injects Record Funds to Ease Cash Crunch (Bloomberg)
  • Obama warns Iran on nuclear bid, containment ‘no option’ (Reuters)
  • When Would Bernanke’s Successor Raise Rates? (WSJ) that’s easy – never
  • Italy’s Monti Downplays Sovereignty Risk (WSJ)
  • Portugal swaps pay cuts for tax rises (FT)
  • Madrid faces regional funding backlash (FT)
  • Berlin Seeks to Push Back New Euro-Crisis Aid Requests (WSJ)
  • Race Focuses on Foreign Policy (WSJ)
  • China Speeds Up Approvals of Foreigners’ Stock Investment (Bloomberg)
  • As worst euro fears fade, U.S. fiscal cliff looms (Reuters)
  • South Korea Delays Fiscal Balance to Boost Economy (WSJ)

Overnight Media Digest

WSJ

* Foreign policy is taking on new urgency in the presidential campaign as President Barack Obama prepares to address the United Nations amid a resurgence of unrest in the Muslim world and his Republican challenger, Mitt Romney, intensifies his criticism of the White House’s approach to the region.

* Iranian President Mahmoud Ahmadinejad on Monday played down the prospects of an Israeli military strike on his country’s nuclear installations, but made clear that Tehran would hold the U.S. responsible if such an attack occurred.

* Syria’s crisis is deepening and threatening to spread to neighboring countries, the U.N.’s envoy to Syria told the Security Council on Monday, delivering his first report on reviving international diplomacy in the fractured country.

* American Airlines and its passengers are struggling with a rise in late and canceled flights spurred by pilot-initiated maintenance requests and a shortage of crew members amid a labor dispute.

* As Europe races to restore confidence in Spain’s finances and the euro, Germany has another reason for urgency in resolving the crisis: the health of its own banks.

* A growing number of companies are producing alternative measures of their top executives’ pay, seeking to persuade investors that compensation isn’t as high as the government’s yardstick implies.

* Two decades after a devastating banking crisis, Nordic banks are playing a new role: a safe haven for scared euro-zone depositors and investors.

* General Electric Co boss Jeff Immelt swore off significant acquisitions in 2012. But the year is nearly over, and the industrial giant may be working up an appetite again.

* Lennar Corp reported sharply higher fiscal-third-quarter earnings, helped by a tax benefit and stronger new-home deliveries and prices.

* The London interbank offered rate, or Libor, remains vulnerable to bank misconduct and should be replaced, Commodity Futures Trading Commission Chairman Gary Gensler said Monday.

* A former Intel Corp employee who said he was “deeply ashamed” of his insider trading avoided a prison sentence Monday for helping the government catch and prosecute Galleon Group hedge-fund founder Raj Rajaratnam.

* Companies that sell equipment and services to mining companies have geared up for a boom-just in time to see miners cut capital spending due to weak commodity prices.

* Lyor Cohen stepped down as head of Warner Music Group’s world-wide recorded-music operations, eight years after joining the company and just over a year after the installation of a new, budget-conscious boss.

* New Zealand is investigating allegations that its Government Communications Security Bureau acted unlawfully in connection with one of the largest criminal copyright cases.

 

FT

TEMASEK RECONSIDERS STANCHART STAKE –

Singapore investment fund Temasek has sounded out potential buyers for its 6 billion pound ($9.72 billion) stake in Standard Chartered.

BUMI PLUNGES ON INDONESIA UNIT PROBE

Bumi, the coal mining group controlled by Indonesian investors, has begun an urgent investigation into allegations of financial and other irregularities.

‘DISCREDITED’ PFI ESCAPES WITH A MAKEOVER

George Osborne is facing awkward questions after a year-long search to replace the government’s unpopular private finance initiative has failed to deliver.

INVESTORS SHIFT TO FUNDS USING DERIVATIVES

Investors are piling into specialised stock market funds that use derivatives to boost returns, highlighting how many money managers are searching for new strategies.

FROTH GOES OFF ITALIAN CAPPUCCINO DEMAND

The siege on the euro zone’s coffee culture, emblematic of southern Europe, is contributing to a sharp drop in wholesale coffee prices.

FOXCONN CLOSES CHINA PLANT AFTER RIOT

Foxconn Technology Group suspended production at one of its largest factories in China on Monday following a riot by 2,000 workers.

CAMERON TALKS AMID UNEASE ON BAE PLAN

British prime minister David Cameron has spoken to the French and German leaders about the proposed merger of EADS and BAE Systems.

CABLE LASHES OUT AT TORY ‘HEADBANGERS’

British business minister Vince Cable unveiled a new British business bank on Monday, while lashing out at Conservative party “headbangers” for endorsing a hire and fire culture.

APPLE SELLS 5 MLN IPHONES ON DEBUT WEEKEND

Apple said on Monday that it had sold more than 5 million iPhones in the opening weekend for its latest smartphone.

WATCHDOGS BACKTRACK ON OIL REFORM

Global financial watchdogs have backtracked on proposals for greater regulation of the physical oil market due to opposition from oil majors and bodies.

 

NYT

* About 1,000 times a year, a plane or a vehicle moves onto an active runway by mistake, but U.S. regulators have been slow to address the problem.

* The images and video began to appear on Chinese social networking sites early Monday: buildings with shattered windows, overturned police cars, huge crowds of young people milling about in the dark and riot police in formation.

The online postings were from a disturbance late Sunday that shut down a manufacturing facility in Taiyuan in north China, where 79,000 workers were employed.

* Saying there are “troubling indications” of abuse in the way hospitals use electronic records to bill for Medicare and Medicaid reimbursement, the Obama administration warned on Monday that it would not tolerate what it called attempts to “game the system” and vowed to vigorously prosecute doctors and hospitals implicated in fraud.

* Greeks are increasingly angry over the prospect that public salaries and pensions will be sharply cut again in a last-ditch bid to secure a 31.5-billion-euro loan installment.

* Sheila Bair, who tormented Wall Street and its Washington allies as a banking regulator, is taking a fresh swipe at her foes in retelling the dark days of the financial crisis.

* More than a quarter of the work force in Spain or Greece is without jobs, but the city of Ingolstadt on the Danube north of Munich has the opposite problem: not enough workers.

* Christine Lagarde, the managing director of the International Monetary Fund, warned that it would probably cut its estimates of global growth yet again this year.

* Cosmetics company Estee Lauder plans to sell a skin care brand called Osiao that caters to the tastes of consumers in Asia.

* Despite a third day of vociferous criticism from the State Department, CNN executives on Monday strongly defended the decision to base some of their reporting about Libya on the private diary of Christopher Stevens, the ambassador who was slain in an attack on the United States consulate in Benghazi on Sept. 11.

* A former Intel Corp executive who leaked secret information about his employer to Raj Rajaratnam, the fallen hedge fund billionaire, avoided prison on Monday when a judge sentenced him to two years’ probation.

* Discover Financial Services has agreed to pay $200 million in refunds to more than 3.5 million cardholders who bought credit protection services over the phone, plus an additional $14 million in civil penalties to banking regulators.

The Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation jointly investigated Discover over deceptive telemarketing and sales practices, including misleading customers into thinking the services, like identity theft protection and credit score tracking, were free.

* Gary Gensler, chairman of the Commodity Futures Trading Commission, called for an overhaul of a crucial interest rate on Monday, telling the European Parliament that the integrity of consumer borrowing is at stake.

* TiVo Inc, the digital video recorder maker, said Monday that it would receive at least $250.4 million from Verizon Communications Inc in a patent lawsuit settlement.

 

Canada

THE GLOBE AND MAIL

* Canadian satellite operator Telesat Holdings Inc has been such a strong performer since BCE Inc sold the business in 2007, its current shareholders can’t agree on how to cash in.

* Two-tier wage deals like those inked recently by Ford Motor Co and General Motors Co are spreading across the U.S. border into Canada’s labour landscape again as companies struggle to compete with lower-cost global rivals.

Reports in the business section:

* The battle over tolls on a big natural gas pipelines has become a fight over the future of manufacturing products from energy in Alberta.

NATIONAL POST

* Ottawa’s decision to share embassy space and resources with Britain, greeted with condemnation by opposition leaders on Monday, is in fact what some observers call a no-brainer: a logical way to expand Canada’s foreign presence without spending all the taxpayer dollars that go into bricks and mortar.

FINANCIAL POST

* With companies from India, Kuwait and China likely next in line to bulk up on Canadian oil and gas, foreign national oil companies (NOCs) are reaching deeper and deeper into Canada’s oilpatch, one of the last driven by the market.

 

Fly on the Wall 7:00 am Market Snapshot for 9/25

ANALYST RESEARCH

Upgrades

Approach Resources (AREX) upgraded to Overweight from Neutral at JPMorgan
Buffalo Wild Wings (BWLD) upgraded to Outperform from Sector Perform at RBC Capital
Safeway (SWY) upgraded to Outperform from Market Perform at BMO Capital
TiVo (TIVO) upgraded to Buy from Neutral at Lazard Capital
WNS Holdings (WNS) upgraded to Outperform from Market Perform at Wells Fargo

Downgrades

Abaxis (ABAX) downgraded to Market Perform from Outperform at Raymond James
Anixter (AXE) downgraded to Underperform from Neutral at Credit Suisse
Automatic Data Processing (ADP) downgraded to Neutral from Buy at UBS
CSG Systems (CSGS) downgraded to Neutral from Buy at Citigroup
Cognex (CGNX) downgraded to Underweight from Neutral at Piper Jaffray
GenOn Energy (GEN) downgraded to Neutral from Buy at Citigroup
Gevo (GEVO) downgraded to Hold from Buy at ThinkEquity
Marriott (MAR) downgraded to Market Perform from Outperform at Keefe Bruyette
Nokia (NOK) downgraded to Underperform from Market Perform at BMO Capital
Paychex (PAYX) downgraded to Neutral from Buy at UBS
Paychex (PAYX) downgraded to Sell from Neutral at Citigroup
Union Drilling (UDRL) downgraded to Market Perform from Outperform at BMO Capital

Initiations

BNY Mellon (BK) initiated with a Buy at Citigroup
Cray (CRAY) initiated with a Hold at Wunderlich
Fusion-io (FIO) initiated with a Buy at Wunderlich
Genomic Health (GHDX) initiated with an Outperform at Credit Suisse
LeapFrog (LF) initiated with a Buy at SunTrust
Life Technologies (LIFE) initiated with an Outperform at William Blair
Lufkin (LUFK) initiated with a Neutral at JPMorgan
Myriad Genetics (MYGN) initiated with a Neutral at Credit Suisse
NVIDIA (NVDA) initiated with a Buy at Roth Capital
Northern Trust (NTRS) initiated with a Neutral at Citigroup
Pandora (P) initiated with a Reduce at Nomura
Sequenom (SQNM) initiated with an Underperform at Credit Suisse
State Street (STT) initiated with a Buy at Citigroup
Super Micro Computer (SMCI) initiated with a Buy at Wunderlich
Synergy Pharmaceuticals (SGYP) initiated with a Buy at Cantor

HOT STOCKS

Tesla (TSLA) cuts 2012 revenue outlook, says DOE loan fully drawn down
SP ratings on Sony (SNE) lowered to BBB, off CreditWatch
Union Drilling (UDRL) to be acquired by Sidewinder Drilling for about $242M
Westlake Chemical (WLK) to expand ethylene capacity in 1Q13
Bridgepoint Education (BPI) eliminated 450 positions, reassigned other staff
Biofuel Energy (BIOF) idled Fairmont Minnesota ethanol facility indefinitely
Whitestone REIT (WSR) acquired Village Square at Dana Park for $50.5M

EARNINGS/GUIDANCE

Companies that missed consensus earnings expectations include:
Red Hat (RHT)

Companies that matched consensus earnings expectations include:
Paychex (PAYX)

NEWSPAPERS/WEBSITES

As Europe moves to restore confidence in Spain’s finances and the euro, Germany has another reason to quickly resolve the crisis: the health of its own banks. German lenders have the most exposure in Europe to Spain, at $139.9B, of which $45.9B alone is exposure to banks, according to the Bank for International Settlements, the Wall Street Journal reports
GE (GE) CEO Immelt said there would be no significant acquisitions in 2012, but the company may be working up an appetite again. A company executive said they want to more than double the size of its new mining business to $5B in revenue by 2016, the Wall Street Journal reports
Sony Corp. (SNE) will likely approve a plan this week to invest $642M in troubled Olympus Corp. (OCPNY), becoming its largest shareholder with about a 10% stake, sources say, Reuters reports
Google (GOOG) began sale of its Nexus 7 tablet in Japan, as well as local language movies and books, in what has quickly become one of its major global markets for digital downloads, Reuters reports
Google (GOOG) Chairman Schmidt said it would be up to Apple (AAPL) to approve the company’s map application for Apple’s operating system after the iPhone maker’s own app was criticized by reviewers, Bloomberg reports.
Royal Bank of Scotland (RBS) managers condoned and participated in the manipulation of global interest rates, indicating that wrongdoing extended beyond the four traders the bank fired, Bloomberg reports

SYNDICATE

Demand Media (DMD) files $100M mixed securities shelf, 14M shares for holders
Enterprise Products (EPD) files to sell 8M common units for limited partners
Healthcare Realty Trust (HR) files to sell 8M shares of common stock
Neptune Technologies (NEPT) files to sell common stock, no amount given
New Mountain Finance (NMFC) files to sell 4M shares of common stock
PennantPark (PNNT) files to sell 9M shares of common stock
Tesla Motors (TSLA) files to sell 4.35M share of common stock

ACTIVIST/PASSIVE FILINGS

Highfields Capital reports 5.8% passive stake in Liberty Interactive (LINTA)
SAC Capital reports 5.0% passive stake in Magellan Health (MGLN)