Tag: default

China’s Real Estate Crisis Worsens as Companies Risk Default

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Two of China’s top real estate developers both show signs that they may not be able to pay off their international debts as the country’s property sector continues to suffer, according to The Wall Street Journal.

Country Garden, which just one year ago appeared to be withstanding China’s tumultuous real estate crisis, failed to make a payment to international bondholders Monday after it reported disappointing September sales, according to the WSJ. China Evergrande, another major Chinese developer, abandoned a debt restructuring deal after regulators barred it from issuing new securities that it needed to fulfill its obligations due to its subsidiary being under investigation, which could now lead to the collapse of the company.

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Commentary: Joe Biden Gambles on Default with No-Strings Increase of $31 Trillion Debt Ceiling

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President Joe Biden is set to meet with House Speaker Kevin McCarthy (R-Calif.) and other Congressional leaders on May 9 to discuss the looming the $31.4 trillion debt ceiling. It’s about time.

So far, Biden’s only plan has been for Congress to simply increase it into perpetuity or else threaten to default, never bothering to address the dismal fiscal outlook facing the nation, even as regional banks continue to fail because of the unsustainable burden caused by taking on U.S. treasuries — a problem that will only grow as the White House Office of Management and Budget (OMB) projects the national debt will rise to $50.7 trillion by 2033.

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Wisconsin U.S. Rep. Glenn Grothman: House Debt-Ceiling Bill a ‘Big Step in the Right Direction’

M.D. Kittle

While President Joe Biden has preemptively declared the House debt-ceiling bill dead on arrival, U.S. Representative Glenn Grothman (R-WI-06) remains hopeful the budget-slashing proposal will bring big spender Biden to the negotiating table. 

“Some people question the will of Republicans to fight for a conservative bill. In my first eight-plus years in congress this was the most conservative bill that we have passed yet,” Grothman told The Wisconsin Daily Star on Thursday’s edition of the Vicki McKenna Show. 

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Biden Admin Shot Down Purchase Attempts for Failed Bank, Former Trump Official Says

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A former economic adviser to former President Donald Trump said Monday that the Federal Deposit Insurance Corporation (FDIC) prevented several efforts to purchase Silicon Valley Bank. Federal regulators shut down Silicon Valley Bank Friday after its stock price collapsed and customers began a bank run following the financial institution’s disclosure of a $1.8 billion loss on asset sales due to high interest rates, CNBC reported. The Federal Deposit Insurance Corporation (FDIC) also shut down Signature Bank Sunday, citing “systemic risk,” CNBC reported separately.

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Conservative Senators Demand Spending Cuts, Fiscal Reform in Debt Ceiling Deal

M.D. Kittle

Fiscal hawks in the Senate reiterated their demands for fiscal reforms and spending cuts Tuesday as they voiced their support for House Republicans to lead the heavy-lifting on addressing the nation’s debt ceiling crisis. 

“We have an opportunity to stop the madness, and it’s incumbent on the Republican majority in the House and Republicans in the Senate to use every lever point we have,” said Sen. Ted Cruz (R-TX) at a press conference on the debt ceiling and runaway spending. 

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