While Rome Burns...
http://www.latimes.com/news/nationworld/nation/la-na-fiscal-cliff-20121231,0,85161.story
"Congress edges closer to 'fiscal cliff' deal but can't close it
By Lisa Mascaro and Michael A. Memoli, Washington Bureau
December 30, 2012, 9:27 p.m.
WASHINGTON - Democrats and Republicans on Capitol Hill inched toward a compromise to avert part of the so-called fiscal cliff but remained unable to close a deal as each side struggled with internal tensions as well as the remaining gap between them.
Lawmakers have been trying to beat a deadline of midnight Monday, when tax rates are scheduled to go up for the vast majority of Americans. But they could continue chasing a deal for days - even until the new Congress is sworn in at noon Thursday. After that, the political dynamics could shift with the entrance of new members.
If Congress fails to act, the combination of new taxes and sharp cuts in defense spending and domestic programs, which also would take effect with the new year, could tip the economy back into recession, economists have warned."
http://www.cbsnews.com/8301-505145_162-57555780/student-loan-debt-nears-$1-trillion-is-it-the-new-subprime/
"Student loan debt nears $1 trillion: Is it the new subprime?
By JILL SCHLESINGER / MONEYWATCH/ November 28, 2012, 10:02 AM
(MoneyWatch) Since the recession, Americans have vastly reduced the amount of debt they maintain, with one glaring exception: Student loans. Outstanding student loan debt now stands at $956 billion, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit. Student debt increased by 4.6 percent in the third quarter from the previous quarter -- when annualized, that's almost a 20 percent rate of increase.
Additionally, more student loan borrowers are falling behind on their payments, with the percent of student loan balances 90+ days delinquent increasing to 11 percent this quarter. This rate is now higher than the "serious delinquency" rate for credit card debt for the first time."
"Congress edges closer to 'fiscal cliff' deal but can't close it
By Lisa Mascaro and Michael A. Memoli, Washington Bureau
December 30, 2012, 9:27 p.m.
WASHINGTON - Democrats and Republicans on Capitol Hill inched toward a compromise to avert part of the so-called fiscal cliff but remained unable to close a deal as each side struggled with internal tensions as well as the remaining gap between them.
Lawmakers have been trying to beat a deadline of midnight Monday, when tax rates are scheduled to go up for the vast majority of Americans. But they could continue chasing a deal for days - even until the new Congress is sworn in at noon Thursday. After that, the political dynamics could shift with the entrance of new members.
If Congress fails to act, the combination of new taxes and sharp cuts in defense spending and domestic programs, which also would take effect with the new year, could tip the economy back into recession, economists have warned."
http://www.cbsnews.com/8301-505145_162-57555780/student-loan-debt-nears-$1-trillion-is-it-the-new-subprime/
"Student loan debt nears $1 trillion: Is it the new subprime?
By JILL SCHLESINGER / MONEYWATCH/ November 28, 2012, 10:02 AM
(MoneyWatch) Since the recession, Americans have vastly reduced the amount of debt they maintain, with one glaring exception: Student loans. Outstanding student loan debt now stands at $956 billion, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit. Student debt increased by 4.6 percent in the third quarter from the previous quarter -- when annualized, that's almost a 20 percent rate of increase.
Additionally, more student loan borrowers are falling behind on their payments, with the percent of student loan balances 90+ days delinquent increasing to 11 percent this quarter. This rate is now higher than the "serious delinquency" rate for credit card debt for the first time."