Posts Tagged ‘interest’

Leveraged Loans defined:

“…arranged by a syndicate of banks, to companies that are heavily indebted or have weak credit ratings.” -IMF

“…are effectively provided to companies already swimming in debt.” -Nomi Prins

“That was all good and well when interest rates were super low, making it easier for companies to borrow oodles of money,”

“This year, leveraged loan issuance reached an annual rate of $745 billion. That’s nearly the same as the prior record of $762 billion in 2007 before the financial crisis and just a bit less than last year’s record of $788 billion globally.”

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“The U.S. 10-year bond yield rose to a seven-year high of 3.24% – nearly 2% above its bottom in July 2016.

This 2% increase, imposed on $68 trillion of debt, is equal to an extra $1.3 trillion in interest charges….

To look at it another way, the typical working person who works an average of 33 hours per week earns $26 an hour. His percentage of the total debt is about $500,000.

At today’s interest rate, he will have to work 558 hours – or three and a half weeks (not including taxes) – just to keep up with the interest payments. Clearly, this is impossible…” -Bill Bonner

Life Interest

Posted: August 6, 2018 in Thought for the Day
Tags: , , , ,

“Develop an interest in life as you see it.” -Henry Miller

“‘One out of five cannot pay its monthly bills.’

What will happen to these people when interest rates rise and easy credit disappears?” -Bill Bonner

“Concentration is the most important thing. And I don’t think people can concentrate too well with all the distractions.”

“So how do we cancel out the noise? How do we build that concentration?”

“You can’t cancel the noise out.  You have to learn to concentrate with the world as it is. You can’t change the world. You have to find a way to focus your mind and your energies on concepts that interest you.” -Don McLean

Banks are keeping billions of dollars from Americans…  Right now, according to the Financial Industry Regulatory Authority, about $350 billion is sitting in brokerage accounts earning an average of 0.12%. That’s about $420 million in interest.  But if all those people with that cash just sitting there moved it to an account earning 1%, the interest earning soars to $3.5 billion a year.  That’s like leaving nearly $3.4 billion in free money on the table.  Make your money work for you.  Stop letting these banks steal your interest.” -David Eifrig

“Always bear in mind that anyone who’s selling you something has a vested interest in your belief that his recommendation is the correct one. Listen to him, but then extend your reasoning beyond his recommendation. And come to your own conclusion.” -Jeff Thomas