June 3 Biz Minute

According to data release today, The US hit another bump in the recovery road, with half a million private sector jobs lost in May and mortgage applications falling last week in the face of rising interest rates. The reports illustrate the dilemma of the Federal Reserve, which has committed trillions of dollars to keep market rates low, only to watch them shoot higher in recent weeks.
Fed Chairman Bernanke warned today that rising U.S. debt was contributing to a spike in longer-term interest rates, and said now was the time to start working on reining in deficits. But he gave no clue as to whether the U.S. central bank would step up its purchases of government debt or mortgage-backed securities to offset the rising borrowing rates.
Luxury homebuilder Toll Brothers posted a wider-than-expected quarterly loss of $83 million, but said it would not give earnings outlook due to several uncertainties related to its business. Chief Executive Robert Toll said "Although cancellations appear to be leveling off, we believe that concerns about job security and the economy continue to inhibit traffic and the conversion of deposits to contracts,"
Embattled insurer AIG. is selling its headquarters building in New York and a nearby building in a deal expected to close at the end of this summer. The building sales are the latest move by AIG, which has received $182.5 billion in financial support, to shed assets to repay the government loan package.
Sallie Mae CEO Albert Lord said today he expects loan write-offs at the student lending company to peak in 2009 and remain high next year. Like other lenders, Sallie Mae has seen an increase in loan losses as the economy has worsened and as more consumers and students are unable to repay their debt.

Category:

News & Politics

Tags:

• Job loss
• Federal Reserve
• Ben Bernanke
• Banki
• Toll Brothers
• Robert Toll
• AIG
• Sallie Mae
• Albert Lord
• Student loans
• lenders

[hbloch1]

Toll Brothers Luxury Housing...........Go to Youtube...........Looking for Schmucks

[waverly2468]

Calif. is once again on the brink of bankruptcy because of a $30 BILLION deficit. By July 4th the state may run out of cash. College tuition in the state is going to explode. If I had a kid I would tell him not to go to college. In 4 years there aren't going to be a lot of jobs but there will be a lot of collection agencies going after student loan debt.