Tag: Credit and Debt

How Bad Is China’s Debt? A City Hospital Is Asking Nurses for Loans

RUZHOU, China — When the call came for local doctors and nurses to step up for their troubled community, the emergency wasn’t medical. It was financial. Ruzhou, a city of one million people in central China, urgently needed a new hospital, their bosses said. To pay for it, the administrators were asking health care workers […]

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China Is Trying to Clean Up Its Banks. It’s Messy.

HONG KONG — One bank failed. A second and third were bailed out. Worried depositors of two more banks then rushed to pull out their savings for fear of losing them in a spectacular failure. These stumbles, which have occurred in quick succession since May, would stir fears of a financial meltdown had they happened […]

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Betsy DeVos Is Held in Contempt Over Judge’s Order on Loan Collection

WASHINGTON — A federal judge on Thursday fined Education Secretary Betsy DeVos for contempt of court, ruling that she had violated an order to stop collecting on loans owed by students from a now-defunct for-profit chain of colleges. Magistrate Judge Sallie Kim of the Federal District Court in San Francisco ordered the Education Department to […]

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When a Mortgage Is Part of Your Retirement Plan

There is no mistaking how Eric Markowitz feels about borrowing money: “I hate debt,” he said. Dr. Markowitz, a dentist in Washington, D.C., took out a mortgage to buy a home for his family, but that’s the extent of his borrowing. And he fully intends to have it paid off by the time he retires […]

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Battle for PG&E Hinges on Rival Plans and Uncertain Costs

SAN FRANCISCO — California’s biggest utility is battling for its future. And it’s not a simple fight. Wildfire victims are joining forces with bondholders to contest its bankruptcy plan. Hedge funds are arrayed on both sides. Shareholders could come away winners or losers — and so could customers. The competing interests are colliding in a […]

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‘Feeding Frenzy’: How New Yorkers Plundered the Chicago Taxi Trade

Oct. 4, 2019 Image In the fall of 2006, Chicago held an auction to sell taxi medallions, the permits that let people own and operate cabs. Hundreds of bids poured in, including some offering to pay much more than expected. The city raised millions of dollars. Officials declared the sale a success. But there was […]

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The New York Fed Chief Is Facing His Biggest Test. Here’s His Response.

John C. Williams, president of the Federal Reserve Bank of New York, has spent the past two weeks grappling with the regional bank’s most tumultuous period in years. Since Sept. 16, a shortage of dollars in an obscure but crucial corner of short-term Wall Street funding, called the repo market, has forced the New York […]

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Ocasio-Cortez Calls for Bailout for Taxi Drivers

[What you need to know to start the day: Get New York Today in your inbox.] Representative Alexandria Ocasio-Cortez is calling for a government bailout for New York taxi drivers, emerging as the most prominent voice to back a financial rescue plan for thousands of drivers who were channeled into exploitative loans. Ms. Ocasio-Cortez, a […]

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The Plan for Puerto Rico’s $129 Billion Collapse: Cut 33% of Its Debt

After years of wrangling with its creditors, Puerto Rico disclosed a plan Friday for resolving the biggest governmental bankruptcy in United States history, by cutting $129 billion in debts to about $86 billion — a reduction of 33 percent. #g-debt_stack-box , #g-debt_stack-box .g-artboard { margin:0 auto; } #g-debt_stack-box p { margin:0; } #g-debt_stack-box .g-aiAbs { […]

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How Could Travel Giant Thomas Cook Fail?

After 178 years of operation, the British tour operator Thomas Cook, one of the world’s oldest travel brands, with 19 million annual customers, closed shop on Monday. The company announced that it would be liquidating its assets and filed for bankruptcy, despite attempts to rescue the brand. At the moment of its collapse, Thomas Cook […]

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The Fed May Have Shrunk Its Balance Sheet Too Much. Does It Matter?

President Trump spent nearly a year insisting that the Federal Reserve should stop shrinking the vast holdings of government-backed securities on its balance sheet, arguing that the process was reining in the United States economy. Last week may have vindicated Mr. Trump’s perception that the central bank went too far with the process — often […]

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Bernie Sanders Calls for Eliminating Americans’ Medical Debt

WASHINGTON — Bernie Sanders has long wanted to remake the health care system so no one will have to pay directly for medical care again. Now, he also wants to go back and cancel all the medical debts of people who have been billed under the current system. In a plan set to be released […]

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Wall Street Is Buzzing About Repo Rates. Here’s Why.

Investors take for granted that the Federal Reserve controls interest rates. Rarely do they have to think about how. But a surprisingly lively couple of days in short-term money markets has meant that the “how” became nearly as important as the “why.” The stress started on Monday in the market for repurchase agreements, or repos. […]

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What People Say About the Economy Can Set Off a Recession

When will the next recession arrive? Economists are evaluating such factors as President Trump’s endlessly shifting tariff policy, the monetary policy of the Federal Reserve and other central banks, and such “leading indicators” as the yields in the bond market. It is good to look at these things. They provide insights about the state of […]

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Reckless Loans Devastated Taxi Drivers. Now Prosecutors Are Investigating.

Federal prosecutors in Manhattan have opened an investigation into possible lending fraud in the New York City taxi industry, the most significant action taken so far in response to widespread practices that trapped thousands of cabdrivers under crushing debt, according to people with knowledge of the inquiry. In the past month, agents have interviewed cabdrivers […]

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Fed Chair Powell Says Central Bank Will Keep Economic Expansion Going

ZURICH — The Federal Reserve chair, Jerome H. Powell, said on Friday that the Fed remains committed to keeping the United States economic expansion going, remarks that signal the Fed is likely to cut interest rates again at its coming meeting. “The Fed has, through the course of the year, seen fit to lower the […]

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China Injects $126 Billion Into Its Slowing Economy

BEIJING — Beijing has called on banks to open the lending spigots as China’s trade war with the United States rages and its economic slowdown shows little sign of abating. The People’s Bank of China on Friday lowered the amount of cash that Chinese banks are required to hold in their coffers, freeing up $126 […]

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Markets Soar on News of China Talks, but Hopes for Progress Are Low

WASHINGTON — President Trump’s decision to renew talks with China in the coming weeks sent financial markets soaring on Thursday, as investors seized on the development as a sign that both sides could still find a way out of an economically damaging trade war. The rally sent the S&P 500 up more than 1 percent, […]

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Only China Can Save Us Now

In the last few weeks, the world economy has seen worrying turmoil. Whether or not a recession is imminent, there has certainly been a collapse of confidence. What has investors so rattled? There are long-term factors in play, like demographic trends and a slowdown in technological change. But what seems finally to have dawned on […]

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The World Has a Germany Problem

You might think that recent events — market turmoil, weakening growth, declining manufacturing production — must be producing some soul-searching in the White House, particularly over Donald Trump’s view that “trade wars are good, and easy to win.” That is, you might think that if you haven’t paid any attention to Trump’s past behavior. What […]

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