tagged w/ Loans
If you had to give away $1 billion, would you help struggling students in your state, or give it to Wall Street banks?
For North Dakota Senator Kent Conrad, he'd rather give $1 billion straight to Wall Street banks instead of helping students in his state pay for college.If you had to give away $1 billion, would you help struggling students in your state,... more
Some of the most oppressive regimes and repulsive groups in history have existed only with the aid of American tax dollars, almost all of which were donated with the best of intentions. Here are some of the worst examples of our nice gestures turned sour.Some of the most oppressive regimes and repulsive groups in history have existed only... more
When Michelle Bisutti, a 41-year-old family practitioner in Columbus, Ohio, finished medical school in 2003, her student-loan debt amounted to roughly $250,000. Since then, it has ballooned to $555,000.
It is the result of her deferring loan payments while she completed her residency, default charges and relentlessly compounding interest rates. Among the charges: a single $53,870 fee for when her loan was turned over to a collection agency.
"Maybe half of it was my fault because I didn't look at the fine print," Dr. Bisutti says. "But this is just outrageous now."
To be sure, Dr. Bisutti's case is extreme, and lenders say student-loan terms are clear and that they try to work with borrowers who get in trouble.
But as tuitions rise, many people are borrowing heavily to pay their bills. Some no doubt view it as "good debt," because an education can lead to a higher salary. But in practice, student loans are one of the most toxic debts, requiring extreme consumer caution and, as Dr. Bisutti learned, responsibility.
Unlike other kinds of debt, student loans can be particularly hard to wriggle out of. Homeowners who can't make their mortgage payments can hand over the keys to their house to their lender. Credit-card and even gambling debts can be discharged in bankruptcy. But ditching a student loan is virtually impossible, especially once a collection agency gets involved. Although lenders may trim payments, getting fees or principals waived seldom happens.
Yet many former students are trying. There is an estimated $730 billion in outstanding federal and private student-loan debt, says Mark Kantrowitz of FinAid.org, a Web site that tracks financial-aid issues -- and only 40% of that debt is actively being repaid. The rest is in default, or in deferment, which means that payments and interest are halted, or in "forbearance," which means payments are halted while interest accrues.
Although Dr. Bisutti's debt load is unusual, her experience having problems repaying
isn't.When Michelle Bisutti, a 41-year-old family practitioner in Columbus, Ohio, finished... more
I have been posting extensively as have others on the way conditional loans and imperial policies have forced Haiti towards destructive economic policies that have left Haiti as susceptible as they were to the earthquake. I have also written on how we should ensure that Haitis desperation was not used to force it into further economic compliance. I have really positive news which says some great things about the IMF and the US given their degree of control over the IMF. The article starts here:
Last Friday I wrote about the IMF's new $100 million loan to Haiti. I cited debt relief activists who told me that the new loan would be an extension of the IMF's existing loan of $165 million. This information was confirmed by the IMF's press release, which stated that "emergency financing would be provided as an augmentation to the existing IMF-supported arrangement with Haiti under the Extended Credit Facility [ECF]." The IMF's announcement provided no further information about conditions that may or may not be attached to the loan and made no mention of future debt relief for Haiti.
My post was based largely on an analysis by Soren Ambrose, the development finance coordinator of ActionAid International, who concluded that augmenting the existing ECF loan to Haiti would impose the same conditions as the original loan. Those conditions include raising prices for electricity, refusing pay raises for any public sector employees except those making minimum wage and keeping inflation as low as possible. Ambrose says that he doesn't know of any established procedure that would exempt an augmentation of an existing program from the program's conditions. (His analysis also noted that Haiti's existing program with the IMF was due to expire at the end of this month and that negotiations on the loan's terms were likely underway already.)
As the IMF announced its $100 million loan under vague and presumably onerous terms, debt relief activists like the folks at Jubilee USA were already calling for a different kind of global response. They were demanding that aid to Haiti come in the form of grants, not loans. But given the magnitude of the crisis and the fact that the IMF does not issue grants, they welcomed the IMF loan in the hopes that its terms could be altered in the future and that Haiti's entire debt could be canceled. At the same time, Naomi Klein and others warned about the possibility that the earthquake would be used as a pretext to amp up Haiti's exposure to the shock doctrine. Activists started a Facebook group, No Shock Doctrine for Haiti, and in less than a week, it has attracted almost 18,000 members. Appeals for debt relief and for the recognition of Haiti's economic sovereignty were written to the Obama administration, the IMF, the World Bank and anyone else who might play a role in Haiti's reconstruction.
Today, the IMF put out an announcement clarifying the terms of its new loan to Haiti--it's "an interest-free loan of $100 million in emergency funds." A spokesman for the IMF emailed me to confirm that "the US$100 million loan does not carry any conditionality. It is an emergency loan aimed at getting the Haitian economy back to function again..." The IMF's managing director Dominique Strauss-Kahn said in a statement that the IMF would immediately work to cancel the entirety of Haiti's debt ($265 million) to the fund:
"The most important thing is that the IMF is now working with all donors to try to delete all the Haitian debt, including our new loan. If we succeed--and I'm sure we will succeed--even this loan will turn out to be finally a grant, because all the debt will have been deleted."
In other words, as the IMF is processing a loan, it is also making a public promise to try to cancel it.
(image here: http://www.iadb.org/news/images/medium/carrefour375.jpg)I have been posting extensively as have others on the way conditional loans and... more
Vice President Joe Biden announced on Friday that the U.S. government will begin granting loan forgiveness to the cities and or counties that were devastated by Hurricanes Katrina and Rita in 2005.Vice President Joe Biden announced on Friday that the U.S. government will begin... more
Even though a smiley face was OK as a signature for a passport and an ID card, a bank in Russia has rejected it for a loan application.
34 year old Vladimir Kirlov is puzzled as to why the bank refused his loan. They said: "A smiley is a drawing and not a signature."
I'm amazed he managed to get it through on his passport!
http://www.telegraph.co.uk/news/newstopics/howaboutthat/6818810/Russian-bank-rejects-loan-over-smiley-face-signature.htmlEven though a smiley face was OK as a signature for a passport and an ID card, a bank... more
Stephen Duxbury's misuse of taxpayers money came to light when police raided his Merseyside home and found an illicit crop worth at least £6,400.
And there were about six times as many "nursery" plants not yet for ready harvest.
His barrister, Tom Watson, said that he has a heavy cannabis habit and no structure to his life.
"He was on benefits and got a crisis loan which he used to set up this illegal enterprise."
Liverpool Crown Court heard today (Fri) he was jailed for six months for running an earlier cannabis farm and released in October last year but on March 31 police raided the house he was renting in Archer Grove, Parr, St Helens.
A search revealed a total of 123 plants in various locations about the premises being grown using a hydroponic system and a diverted electricity system.
Setting up the system had involved making a hole in a ceiling and in walls and the property owner estimated repairs, replacing carpets, replacing the electricity meter and eradicating the damp smell would cost up to £5,000, said Joanne Maxwell, prosecuting.
Jailing 34-year-old Duxbury to 15 months imprisonment, the judge, Recorder Roderick Carus, QC, said that the six month sentence he received last year should have given him time to reflect and wean himself off drugs. "It was an opportunity to come off drugs and you spurned it."
He described him as "a lonely individual who gets himself a personality - the guy who runs a cannabis farm."
Duxbury, of McCormack Avenue, Parr, St Helens, who is repaying back the crisis loan via deductions from his benefits, pleaded guilty to producing cannabis and criminal damage.
He pleaded guilty on the basis it was only a small scale operation and would have supplied friends who were users to finance the operation and his own habit.
http://www.telegraph.co.uk/news/uknews/crime/6730139/Cannabis-grower-used-government-loan-to-set-up-marijuana-farm.htmlStephen Duxbury's misuse of taxpayers money came to light when police raided his... more
It’s official. The “save the drowning homeowner who got burned plan” aka the “Home Affordable Modification Program (HAMP)” is a Big Fat Dud.
A U.S. Congressional oversight panel reported this week that of 500,000 mortgages currently in the hopper for restructuring, only 2,000 (less than half a percent) have been permanently modified-a remarkable feat of failure only George W would envy.
The ten month old program offers lenders $1000 per year for up to three years if they modify a loan. Mortgage servicers make far more than that in late fees alone. The banks with these loans on their books must be laughing at the paltry sum in the wake of the tens of thousands of dollars they stand to make in foreclosure. Investor pools that hold mortgage securities and hide behind the servicers and banks would lose millions. In response, they slither away out of the public eye and simply ignore the Obama administration’s call to make homes “affordable.”
There is no legally binding, real financial incentive, or even official threat to participate, so why bother say lenders? Hence the U.S. “Making Home Affordable” plan is a miserable failure. It is all bark and no bite.
Why bother indeed? Lenders might step up because they want to help their fellow countrymen? Let’s just forget that. How about doing it for the sake of the housing market, the economy, the country? No thanks, lenders say.
We would have to come up with something more compelling than that to shake the snakes out from under the rocks. Perhaps some big buckeroos might do it. Short of that, real threats of withholding government aid from lending institutions might create sudden patriotic fervor. Or perhaps bank-loving policy makers should put their money where their mouth is-in the American people’s hands.
While the nation is spending billions on two wars it doesn’t want and trillions on the same folks that pulled the financial ground out from under them, $3000 to modify a mortgage seems like chump change to a lender. And folks as we know from the biggest scam ever to hit the American people-subprime mortgages and the CDO and CDS securities that hid them- banks are not chumps.
source: http://3blmedia.com/theCSRfeed/Home-Loan-Named-Desire#GoodB Blog It’s official. The “save the drowning homeowner who got... more
"LONDON (Reuters) - Leading banks have funded arms manufacturers, whose products include cluster bombs, to the tune of $5 billion in the past two years, despite an international accord to ban such weapons, a study said Thursday.
The report by Profundo consultancy and several NGOs said the banks loaned money to companies whose products include cluster bombs or their components.
It did not say the funds went directly to make cluster bombs. The manufacturers could use the money for any of their production lines.
The top five loan providers were Bank of America, Citigroup , JP Morgan, Barclays and Goldman Sachs, the study said.
The researchers used publicly available information, such as that supplied by stock exchanges and financial databases, to produce their study.
According to the research, the banks have provided financing for diversified manufacturer Textron, aerospace and defense group Alliant Techsystems and defense contractor Lockheed Martin , all based in the United States.
Cluster bombs, which open in mid-air and scatter a multitude of bomblets over a wide area, have killed and maimed tens of thousands of civilians, campaigners say.
Nations agreed to outlaw cluster bombs in May 2008. The resulting convention will come into force when 30 countries have ratified it -- 23 have already done so.
Neither the United States nor Britain, where the top five loan providers are based, have yet ratified the treaty.
The Convention on Cluster Munitions includes a ban on assisting anyone to make the bombs.
Bank of America and JP Morgan declined to comment while Citigroup and Goldman Sachs also had no immediate reaction.""LONDON (Reuters) - Leading banks have funded arms manufacturers, whose products... more
ALBANY, Ohio/WEST PALM BEACH, Florida (Reuters) - Within weeks of taking office, U.S. President Barack Obama rode to the rescue of homeowners resigned to financial ruin.
Obama, grappling with the worst U.S. housing crisis since the Great Depression, pledged to help as many as 9 million families keep their homes by reworking their mortgages.
Eight months later, the plan is plagued by delays, red tape and, some critics say, a reluctance by banks to do their part. Just 17 percent of eligible borrowers have had their loans modified and monthly payments cut. Hardly any have been given a cut in the amount they owe on homes which are now worth less.
That means many successful applicants are left with loans that they still will not be able to afford in the long run. So instead of resolving the housing crisis that pushed the U.S. economy into recession, America may be prolonging it and, in the process, stunting the global recovery.
"Every single policy we've seen has merely kicked the problem down the road," said Laurie Goodman, a veteran analyst at broker-dealer Amherst Securities Group LP, which specializes in residential mortgage-backed securities.
"But there is no easy solution to the underlying problems."
For homeowners like Jeff Latta, there was no help at all.
Latta, a 53 year-old retiree, pays $1,600 in monthly home payments that eat up 93 percent of his pension and he struggles to make child support payments.
To help pay his mortgage, Latta has slashed his bills by hunting for food in the wooded hills around his town of Albany in southern Ohio, and growing his own vegetables. He has resorted to selling pumpkins and firewood to make cash.
In March, Latta heard about Obama's Home Affordable Modification Program, or HAMP, that allows mortgage payments to be reduced to 31 percent of a homeowner's income.
The plan was launched as a central plank of Washington's efforts to stem foreclosures.
Latta applied for a loan modification but was rejected. His bank said his income from selling pumpkins and firewood -- a net of $906 in 2008 -- was too high.
"Frankly, I'm disappointed," Latta said. "I thought I would qualify as I am at high risk of default."
More at the link.
This is to be added to the failure of Cash for Clunkers. Which just proves that he deserved that Nobel Peace PrizeALBANY, Ohio/WEST PALM BEACH, Florida (Reuters) - Within weeks of taking office, U.S.... more
While it's been said you should never underestimate the value of a college education, neither should you estimate its price. Without proper financial planning, you could be paying off those student loans for the rest of your life. College tuition costs are rising at twice the rate of inflation, in part because colleges are attempting to make up...While it's been said you should never underestimate the value of a college... more
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The new documentary by Michael Moore, the American director who in Fahrenheit 9/11 attacked Bush's policy against terrorism, in Sicko the lack of a functioning health systems in the United States and in Bowling for Columbine investigated the causes of the massacre in a school and the spread of weapons in the country, this time is taking aim at capitalism, the economic system that rules the West since centuries.The new documentary by Michael Moore, the American director who in Fahrenheit 9/11... more
http://www.creditraisingnow.com Check out these 27 powerful ways showing you how to repair your bad credit. These videos also provide some proven ways to raise your credit score and proven methods to rebuild your bad credit.http://www.creditraisingnow.com Check out these 27 powerful ways showing you how to... more
Loan modifications are hard for homeowners to figure out.
Many get mixed signals about whether they qualify for a loan modification from their mortgage loan servicers.
You might be told you do qualify for a loan modification one day, and then in the next letter told that you do not qualify for a loan modification - even though your financial situation has gotten worse.
But even if you do qualify for a loan modification, it is taking months for them to happen. You'll have to be patient, but not not a doormat.
Find out whether you qualify for a loan modification by contacting a HUD housing counselor. And, call back your own mortgage lender frequently to check on the status of your loan modification.Loan modifications are hard for homeowners to figure out. Many get mixed signals... more
Anyone who doubts the need for a Consumer Financial Protection Agency (CFPA) that looks out for individual consumers’ interests might want to take a look at a few recent statistics and reports that shed light on what life is like for banking customers under current government regulatory oversight.Anyone who doubts the need for a Consumer Financial Protection Agency (CFPA) that... more
It has been brought to our attention at FraudulentCharges.com that there’s yet another popular scam taking place online. After much research and debate with fellow visitors we would like to offer our opinion and some advice for customers who have been fraudulently charged by MyIdSupport.com and various similar companies via the internet.It has been brought to our attention at FraudulentCharges.com that there’s yet... more
Leading US banks are not lending as much as bankers and borrowers refrain from taking risks in the uncertain economy, The Wall Street Journal reported.
An analysis by the Journal showed the total loans held by 15 large US banks shrank by 2.8 percent in the second quarter, and that more than half of the loan volume in April and May came from refinancing mortgages and renewing credit to businesses and not fresh loans.
The banks surveyed include financial giants such as J.P. Morgan Chase, Bank of America and Citigroup as well as regional banks such as Fifth Third Bancorp, based in Cincinnati, and Regions Financial Corp. of Birmingham, Alabama.
The 15 banks hold 47 percent of federally insured deposits and got 182.5 billion dollars in taxpayer-funded capital infusions through the Troubled Asset Relief Program, the report said.
As of June 30, the banks had 4.2 trillion dollars of loans on their balance sheets, down from 4.3 trillion dollars on March 31.Leading US banks are not lending as much as bankers and borrowers refrain from taking... more