With the Federal Housing Administration drawing $1.7 billion from the Treasury into its Mutual Mortgage Insurance Fund for the first time in FHA history, the balance of the fund ended up costing the federal government a hefty sum.
While the U.S. government spent $98 million more than it took in last month, this is far from uncommon, especially since 2009 when a hike in unemployment fueled higher spending on the social safety net, Reuters reported.
The head of credit research at Société Générale is zinging politicians on the super committee for failing to reach a deal on the America's runaway debt.
In short, the indication is that the bipartisan Joint Select Committee on Deficit Reduction blew a huge opportunity to accomplish something so much stronger than anyone may realize.
In a note to investors, Soc Gen's Roger Horn said U.S. credit markets already had little good news to be thankful for over the last week, "as spreads have traded 7.5% wider on investment grade corporate CDS and 9.8% on high yield CDS."
On Aug. 5, rating agency Standard & Poor's downgraded its rating of the U.S. sovereign debt, the first such downgrade for the U.S. in modern history. Below is the full text of Standard & Poor's press statement.
We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.
We have also removed both the short- and long-term ratings from CreditWatch negative.
Editor's Note: On Monday, Paul Jackson, the publisher of HousingWire, postulated the market sentiment that we are all in this mess together.
Two days ago, in one of his rare appearances in front of the press, Bank of England Governor Mervyn King spoke frankly to reporters over the results of his Quarterly Inflation Report.
The Treasury Department said Monday it expects to borrow $361bn of marketable debt in the quarter ending June 09, up $196bn from the estimate announced in February.
The revised estimate includes $200bn for the Supplementary Financing Program (SFP), which accounts for much of the driving force behind the increase, said the Treasury in a statement. It also will drive the assumed $269bn cash balance for the end of Q309, during which Treasury projects will borrow $515bn of marketable debt.
As the nation struggles to come to terms with its own deficit and breathtaking unemployment rates, at least one state is taking matters into its own hands. Governor of California Arnold Schwarzenegger has told state lawmakers he will lay off up to 10,000 government employees if the legislature was unable to pass a suitable budget to counter a staggering deficit and growing unemployment rate, which was at 8.4 percent as early as November, according to the governor's statements.
One by one, they filed into the city council chambers. They took their seats and waited their turn, and once there weren’t any seats left, they moved to the seldom-used overflow seating. When the overflow seating filled, they moved to the civic center so they could watch the meeting on a closed-circuit feed..
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Only seven or eight years ago, mortgage fraud was one of the top stories in the industry. It was quite common to see stories estimating losses in the millions, with some experts suggesting that these numbers were only the tip of the iceberg. Lenders and their partners scrambled to strengthen their fraud-prevention strategies. Read More