Tag: Credit and Debt

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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Short on Cash, Businesses in China Rely on I.O.U.s to Keep the Lights On

SHENZHEN, China — China was on the cusp of the biggest building boom the world had ever seen when Zhang Zhiyang started his architecture firm. It was 2007, and the money rushed in for contracts to design residential complexes and an exhibition hall. These days, with China’s economy slowing and his own business dropping off, […]

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Russians Pulling Out Credit Cards, and Consumer Debt Spirals

MOSCOW — Yekaterina V. Bulgakova gushed about the cozy one-room apartment that she and her boyfriend share, and particularly about the way they could always cover the rent: by charging it on credit card. “Our salaries don’t go far enough” to pay for housing, food and other necessities every month, Ms. Bulgakova, a tattoo artist, […]

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Why Rate Cuts Don’t Help Much Anymore

Now that it has finally happened, don’t expect the Federal Reserve’s long-awaited rate cut to make all that much of a difference for the economy. In the weeks leading up to Wednesday’s decision to cut the benchmark Fed funds rate by 0.25 points to 2.25 percent, the stock market seemed to leap whenever Jerome H. […]

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The Fed Just Cut Interest Rates. Here’s What That Means for You.

Americans juggle a lot of interest rates in their daily lives. They pay interest on car loans, credit card balances and mortgages. They earn interest, at least a little, on the money they save with banks. Technically speaking, Federal Reserve officials did not touch any of those rates when they announced a quarter-point interest-rate cut […]

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What to Watch Ahead of the Fed Meeting

The Federal Reserve is almost universally expected to cut interest rates when its meeting wraps up on Wednesday, the first reduction since officials slashed them to near zero in 2008, during the dark days of the financial crisis. It’s a turning point, and a precautionary one. Uncertainty stirred up by President Trump’s trade war and […]

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Why We Should Fear Easy Money

To widespread applause in the markets and the news media, from conservatives and liberals alike, the Federal Reserve appears poised to cut interest rates for the first time since the global financial crisis a decade ago. Adjusted for inflation, the Fed’s benchmark rate is now just half a percent and the cost of borrowing has […]

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It’s Easy to Forget, but a Program to Forgive Student Loans Already Exists

ImageThe rejection rate for the Public Service Loan Forgiveness program is 99.3 percent, but that’s likely to decrease significantly over time. A graduate at Pasadena City College wore a money lei in June.CreditRobyn Beck/Agence France-Presse — Getty Images When Bernie Sanders recently announced a $1.6 trillion plan to forgive all student loans, he had a […]

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A Super Bowl Trip, a Bribery Indictment and the Taxi Industry’s Corruption

[What you need to know to start the day: Get New York Today in your inbox.] For decades, Alan S. Kaufman and Tony Georgiton held immense power in New York City’s taxi industry. Mr. Kaufman led a major credit union that lent money to thousands of drivers. Mr. Georgiton co-owned a fleet that operated 550 […]

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A Bailout for Taxi Drivers? The Mayor Says No, but Others Keep Pushing

After it emerged that thousands of taxi drivers had been lured into reckless loans that left them with overwhelming debt, city leaders took steps to keep it from happening again. They have begun enforcement proceedings against brokers who arranged the loans, arrested a debt collector, strengthened oversight and written new rules. But there is one […]

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Turkey’s Long, Painful Economic Crisis Grinds On

ARHAVI, Turkey — The terraced rows of tea plants climbing the hills above the Black Sea used to glint like money. Lately, they look like another casualty of Turkey’s long, grinding economic crisis. Lipton, the multinational giant, recently scrapped production at one of its three tea-processing factories in the area. It has slashed purchases of […]

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Trade War May Be Slowing Business Spending and Factories, Fed Says

WASHINGTON — Federal Reserve officials worry that the uncertainty caused by the trade war between the United States and China could be constraining business spending and may be contributing to a manufacturing slowdown that is dragging on growth. The concerns were outlined in the Fed’s semiannual Monetary Policy Report, released on Friday as Jerome H. […]

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How to Manage Your Credit Card Bills, Which Experts Say Are Late More Often

Even with a strong economy, a growing number of people are having trouble paying their credit card bills. Late credit card payments, while still low, have been ticking upward for the past two years, the Federal Reserve Bank of New York reported in May. Card delinquencies have been rising for borrowers under 30, in particular, […]

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Interest Rates Just Keep Falling. Economic Orthodoxy Is Falling With Them.

ImageTraders at the New York Stock Exchange. Recent movements in bond markets suggest that very low inflation is likely to be the norm indefinitely, despite the low jobless rate.CreditBryan R. Smith/Agence France-Presse — Getty Images American borrowing costs keep plunging, and that is signaling something important: Some of the basic assumptions of the most influential […]

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