Defaults reported by credit rating agencies such as Moody's don't tell the whole story, as they only include rated bonds, according to the Fed researchers in their blog post titled, "The untold story of municipal bond defaults." Including unrated bonds in the total number of defaults exponentially increases the number of defaulted municipal bonds.
Read more: http://www.bankrate.com/finance/investing/avoid-municipal-bonds-that-default-1.aspx#ixzz3gTelGC00
How long can this last? Mortgage rates have started to increase and could head higher once the Federal Reserve finally starts to hike interest rates.
At a bare minimum, the refi boom may be over. And if mortgage rates really spike higher, we could start to see a slowdown in both existing and new home sales.
Fortunately, there are no signs of that yet. Home sales topped expectations last month. But building permits plunged in February. Some of that may be due to the weather. But not all of it.
Related: Oil crash may kill the Texas housing boom
The huge drop in oil prices could hurt demand for housing in markets with close ties to the energy industry. Good luck trying to blame weakness in Texas and Louisiana on the winter weather.
And even though the job market is improving, many younger people are still choosing to rent (or live at home with their parents) instead of buying. That trend may continue if mortgage rates climb further.
Luckily, banks have tightened credit since the last housing bubble. Lenders are in much better fiscal shape than this time eight years ago. There shouldn't be another subprime meltdown.
But don't be surprised if the housing market starts to cool off for a bit given how spectacular the rebound has been. And if that's the case, economic growth may start to slow a little as well.
Facebook should be well over 200 share price.
And Southerners have began a boycott of the company for Walmarts Removal of Confederate Flag Merchandise .A man in Louisiana is asking for an explanation from Walmart after his request for a Confederate flag cake at one of its bakeries was rejected, but a design with the ISIS flag was accepted.
Chuck Netzhammer said he ordered the image of the Confederate flag on a cake with the words, "Heritage Not Hate," on Thursday at a Walmart in Slidell, Louisiana. But the bakery denied his request, he said. At some point later, he ordered the image of the ISIS flag that represents the terrorist group.
PHOTO: Boxes move along a conveyor belt at an Amazon fulfillment center on Jan. 20, 2015 in Tracy, Calif.
"I went back yesterday and managed to get an ISIS battleflag printed. ISIS happens to be somebody who we're fighting against right now who are killing our men and boys overseas and are beheading Christians," Netzhammer said.
I hear ya mike ...Im pro Southern Northerner...Love y'all and your grits and whiskey... this removing the flag thing is like #$%$ Germany or communist Russia taking away peoples rights and freedom of speech....I think its a part of History.....
As a result, retail investors yanked $2.6bn out of US junk bond investment vehicles in the seven days to June 10, according to EPFR Global, the biggest weekly outflow since mid-December. Several high-profile exchange traded funds were among the biggest victims, tumbling sharply as money flowed out
The sudden exit of Bill Gross from Pimco sparked a knee-jerk selloff in the Treasury market, a drop in Pimco closed-end funds and rallies in competitors' shares as traders gamed whether the world's largest bond house would see an exodus of investors and a repositioning in its funds.
He will be succeeded by Daniel Ivascyn, the company announced later on Friday.
Treasury yields moved higher, with the 10-year going from about 2.50 to 2.54 percent, before retreating back to 2.52 in midmorning trading
David Stockman has a stark warning for the world: Stocks and bonds are on the verge of a catastrophic collapse.
On CNBC's "Futures Now" Thursday, the former OMB Director said that excessive monetary policy has forced central banks all over the world into a corner, and as a result, "the markets are going to be in for a huge, nasty morning after as people begin to look at where we really are."
Stockman questioned the real strength of the economy, noting that despite the fact that the U.S. is in the midst of one of the "longest expansion or recovery periods we've had in the post-war period," we're currently in month 78 of zero interest rates. By his logic, the market has become far too dependent on the Fed.
| Apr 29, 2015
Facebook, it seems, is unstoppable. The social publishing site, just 11 years old, is now the dominant force in American media. It drives a quarter of all web traffic. In turn, Facebook sucks up a huge portion of ad revenue—the money that keeps news organizations running—and holds an enormous captive audience.
We already know, from a Pew poll last year, that nearly half of the adults who use the Internet report getting news from Facebook.* Now consider some of the latest numbers from Pew, in its annual State of the Media report, which came out on Wednesday: