Loans

How To Make Loans Scarce In Three Words: Cap Interest Rates

Authored by Mike Shedlock via MishTalk, Here’s a perfect free-market example of what not to do about allegedly high interest rates. Interest Rate Caps Reuters reports Peru Passes Law Allowing Central Bank to Cap Interest Rates on Bank Loans. Peru’s Congress approved on Wednesday a law that will allow policymakers to cap interest rates on loans…

PPP Loans Can Now Be Used To Fix Riot Damage, Pay For Defense Against Looters

We previously discussed the billions of dollars worth of pork in the combined $2.3 trillion government spending/covid-19 relief package. As it turns out, there is another way this stimulus is a Krugman’s Keynesian’s wet dream: according to the NYT the grants loans can be used to fix damage from riots which now are such a…

House Down Payments Soar To 20 Year High As Banks Crack Down On New Loans

American homebuyers have to pony up even greater amounts of money for a down payment due to tightening credit standards and skyrocketing home prices.  According to Bloomberg, citing a new report from Attom Data Solutions, the median down payment for a single-family home is $20,775 for the third quarter, the most in at least two decades…

Losses From Student Loans May Eclipse Subprime Crisis

As regular readers know, we’ve been keeping tabs on the mounting risks in the student loan market for years, as an ongoing racket between lenders and universities have pushed tuition to astronomical levels – leaving millions of graduates with mountains of debt for expensive credentials they can’t reasonably repay. Now, according to a new analysis…

Deutsche Bank Wants To “Sever Ties” With Trump By Offloading Business Loans

Considering all the airtime that CNN and MSNBC have devoted to speculation about President Trump’s alleged ties to shadowy Russian financiers, the New York Times’ decision to publish all those details from the president’s tax returns has ironically proven that Trump doesn’t owe any substantial money to “Russia”. Rather, while Trump’s company owes millions of…