Daily Digest

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Daily Digest 7/3 - Loan Rates Surge on 43% of Debt, Puerto Rico Awaits Crisis Budget

Wednesday, July 3, 2013, 9:13 AM

Economy

Loan Rates Surge on 43% of Debt as Lenders Balk: Credit Markets

Investors are demanding more in interest to fund the $550 billion market for leveraged loans after Federal Reserve Chairman Ben S. Bernanke indicated the central bank could slow the pace of its stimulus if economic growth keeps pace with its forecasts. The comments triggered a surge in debt yields, causing a drop in loan prices as high-yield fund managers dumped the debt to mitigate losses on junk bonds.

China Banks’ Golden Era Fades as Crunch Raises Default Risk

Chinese banks’ valuations are close to their lowest on record as the nation’s interbank funding crisis exacerbated investors’ concern that earnings growth will stall and defaults may surge as the economy slows.

CMBS Sales to Be Cut in Half as Rates Rise, Bank of America Says

Sales of commercial-mortgage bonds will be reduced by half during the last six months of 2013 as rising interest rates impede new lending, according to Bank of America Corp. (BAC)

Troika’s Greek Ultimatum: 3 Days To Deliver

Frustrated with stalled firings and foot-dragging, Greece’s international lenders have given the government until the end of the week to pass reforms or face losing its next loan installment of 8.1 billion euros ($8.1 billion) four Eurozone officials said to Reuters.

July 4th fireworks scrapped at a number of military bases

The Fourth of July won't have a patriotic boom in the sky over some military bases. Budget cuts and furloughed workers also mean furloughed fireworks.

Germans Let Cars Age as Consumers Halt Buying in Crisis

Cars on German roads are older than they’ve ever been as consumers balk at replacing aging models with new ones amid Europe’s sovereign-debt crisis.

Registrations of new models in the country slumped 4.7 percent in June, the fifth decline this year, leading to an 8.1 percent drop for the first half of 2013 to 1.5 million vehicles, according to data released today from Germany’s motor vehicle office, KBA.

Puerto Rico awaits budget to solve economic crisis

"We are facing a gradual fiscal deterioration that is affecting the capacity to generate needed revenue," reads a measure that legislators are reviewing. "The magnitude of the reality we're facing cannot be avoided."

Puerto Rico is struggling to emerge from a seven-year recession while trying to reduce a $1.2 billion deficit and $69 billion in public debt. The island of 3.7 million people also has a nearly 14 percent unemployment rate, higher than any U.S. state.

Spain puts property on block in bid to replenish its coffers

The Spanish government has approved a plan to sell a quarter of its state-owned properties in an attempt to raise hundreds of millions and boost the government's empty coffers.
Some 15,000 properties, from office buildings to agricultural land, will be put up for sale over the next seven years.

Euro-Zone May Jobless Rate Revised Up to 12.2% from 12.1%

The 12.2% rate of unemployment is the highest since records began in 1995.

Traffic cameras bring tiny Ohio village to a stop

In the first month after the cameras began operating, late last year, 6,600 tickets went out _ more than triple the village's population. Before some unsuspecting drivers realized it, they had racked up multiple $105 citations they would learn about when their mail arrived weeks later. Some 70 parishioners, or more than half the congregation at Our Lady of Lavang Catholic Community Church, were ticketed on one Sunday last September.

College default rates higher than grad rates

More than 260 colleges and universities in 40 states, the District of Columbia and Puerto Rico have students who are more likely to default on their loans than full-time freshmen are to graduate, an analysis of federal data shows.

Gold & Silver

Click to read the Gold & Silver Digest: 7/2/13

Provided daily by the Peak Prosperity Gold & Silver Group

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