An increase of that size would mean 6 million people would lose their jobs, according to a report this week by Moody’s Analytics chief economist Mark Zandi. His forecast showed that the latest debt ceiling standoff could inflict significant economic damage if not resolved, including doubling the current 3.5% unemployment rate. The U.S. government reached the $31.4 trillion debt limit imposed by Congress on Jan. 19, and since then has been relying on accounting tricks by the Treasury Department in order to keep the government running....

When the revenue exceeds the spending, it creates a budget surplus. A surplus will reduce debt. How the Deficit Affects the Debt The U.S. Treasury must sell Treasury bonds, bills, and notes to raise the money to cover the deficit and fund regular government operations. This type of financing is known as public debt since these bonds are sold to the general public. Treasury debt is considered one of the most secure investments in the world because these debt securities have the backing of the U....

Here’s a quick look at the most significant economic indicators of the day and what they tell us. Mortgage Applications Interest in new and refinanced home loans hasn’t been this low in decades, thanks to higher mortgage rates. A weekly index measuring the volume of mortgage applications for home purchases and refinancing dropped for the fourth week in a row last week, falling 6.5% and reaching its lowest point in 22 years, according to the Mortgage Bankers Association....

Often, the economic policies of Democratic presidents are dictated by the situations they preside over. Most of them, for example, were forced to employ expansionary fiscal policy to pull the country out of a recession or depression. Many also had to increase defense spending due to overseas conflicts or wars. The chart below outlines the change in real gross domestic product (GDP) during a few Democratic president’s terms (highlighted in gray), according to the U....

Named Insured The standard commercial general liability form outlines the parties that qualify for coverage in a section entitled Who Is An Insured. The first is the named insured, meaning the individual or company designated by name in the policy. The named insured may be a sole proprietorship, partnership, corporation or another type of entity. The liability policy refers to the named insured as “you” or “your.” The named insured is afforded broader protection than other types of insureds....

This lays the foundation for your company’s product prices. However, if you charged only this price, you would recover your costs but make zero profit. Once you know your total costs, you can determine a profit percentage that makes your operation worthwhile yet still competitive in your product’s given market. Direct Costs You can typically trace your direct costs to a particular object, sometimes called a cost object. This might include wholesale-purchased products for resale, the raw materials used to manufacture your own products or the labor associated with the work to produce the product....

Reverse Mortgages Explained A reverse mortgage takes the equity in your home and uses this to create an income for you in the form of one or many payments. The payments are based on a portion of the equity of your home. It can be a slow and steady way to take the money that you invested in your house out as cash. It sounds like a good idea to many people, but there are a lot of potential issues with the reverse mortgage that you should become informed before signing off on this kind of arrangement....

Inflation fears broke down along party and generational lines in the poll, with more Republicans and older voters saying that it would make things worse. Prominent Republicans like Gov. Larry Hogan of Maryland have criticized the bill for containing “massive tax hikes” that are especially ill-timed with soaring inflation. Douglas Holtz-Eakin, a former economic adviser to President George W. Bush, said the bill would sustain the “fires of inflation” in a column for The Hill....

Lenders Require Full Coverage The main expense when insuring a financed car is that lenders require both comprehensive coverage and collision coverage on top of the state minimum requirements for auto insurance. When you purchase a vehicle with your own money, you can make the cheaper choice to purchase only your state’s mandatory minimum coverage. Example: Joan purchased a $20,000 car with $10,000 cash and a $10,000 loan, but didn’t want to pay for full coverage insurance because she felt the risk of damage was very low....

First, the bad news: your student loans will affect your ability to get a mortgage. The good news is it’s still quite possible to get a mortgage even if you have student loans. It just depends on your situation. Factors That Affect Your Mortgage Approval Your student loans will affect your mortgage in a few different ways. Here are the main things you’ll need to think about: Debt-to-Income Ratio Lenders set maximum limits for what your monthly mortgage payment can be based on what percent of your income goes toward debt payments (the mortgage included)....

That’s according to the first estimate of the nation’s Gross Domestic Product in the fourth quarter, released this week by the Bureau of Economic Analysis. The estimated annual growth rate of 2.9% puts the nation’s overall economic output just a touch below the same trajectory that the Congressional Budget Office projected back in January 2020, Jason Furman, Harvard economics professor and former top economic advisor to President Barack Obama, noted on Twitter....

Specifically, EGTRRA: Increased the tax-deductible contributions people could make to their IRA accounts. Doubled the child tax credit from $500 to $1,000. Expanded the Earned Income Tax Credit. Provided greater tax deductions for education expenses and savings. Reduced the gift tax. Provided relief from the Alternative Minimum Tax. Phased-out the estate and generation-skipping transfer taxes so that they were eliminated in 2010. Reduced the “marriage penalty” by doubling the standard deduction for married couples....

Telematics uses communications technology to help improve efficiency and safety in transportation, and Modus provides tools to help with this goal. Program Features Customers receive a discount on their policy premiums by allowing Esurance to monitor driving habits through the DriveSense mobile app. The app is available as a free download for anyone through the Google Play Store for Android devices and the Apple App Store for iOS devices. As of Feb....

Find out some of the key elements you should look for when comparing and buying stocks. Buy and Sell Prices The first task is to buy at the right price, but what is the right price? Different investors will have different answers, but they would agree that you should buy below what you think the future price will be. Figuring out what price the market will pay for a stock in the future is difficult....

Learn the history behind these two types of insurance, what they cover, and why it’s critical to have both in your financial toolbox. What’s the Difference Between FDIC Insurance and SIPC Insurance? The Federal Deposit Insurance Corporation (FDIC) is an independent agency that began in 1933 in response to the bank failures throughout the Great Depression. It was created by the Banking Act of 1933 (also known as the Glass-Steagall Act), which was signed into law by President Franklin Roosevelt....

A monthly survey asking consumers about their financial vulnerability showed things took a sharp turn for the worse in January. As the chart below shows, 29% of 2,200 U.S. adults polled by Morning Consult Jan. 11-12 said they didn’t have enough savings to cover a month’s worth of basic expenses, an increase from 22.3% of those polled in December. That many people haven’t felt so financially vulnerable since the question was first asked in May 2020, shortly after the COVID-19 outbreak locked down much of the economy....

You may have questions. How much can you contribute to a Roth IRA? When can you withdraw money tax-free? When should you convert your traditional IRA to a Roth IRA? You’ll find your answers here. How Does a Roth IRA Differ From a Traditional IRA? Though there are a number of different rules that govern each type of account, the main difference between a Roth IRA and a traditional IRA is in their tax treatment....

The president submitted the Fiscal Year 2016 budget proposal to Congress on February 2, 2015. Congress passed a $1.15 trillion spending bill on December 18, 2015. The budget process involves nine steps before a bill for the official annual budget can be finalized. This process usually begins a full year before the fiscal year does. Here is a breakdown of FY 2016 budget revenue and spending. It compares the most recent estimates, including the amount appropriated by Congress, to the president’s budget....

Average home prices in June were up 17.2% compared with the year before, the largest year-over-year increase measured by CoreLogic’s index since 1979, according to a report released by the company this week. Home prices over the years have been on a wild ride, as shown in the chart below. Demand for homes has skyrocketed since soon after the pandemic hit, as telecommuters sought space to work from home. On top of that, the supply of houses for sale has been severely constrained, leading to prices so high that sales have actually started to slack off as buyers have been driven from the market....

How Do Lines of Credit Work? A line of credit is an available balance from which you can borrow money and use before paying it back, sometimes with interest. Different lines of credit work differently. A credit card allows you to borrow money from your credit line and then pay it back by a certain due date. If you do not pay it back in full by that date, you’ll be charged interest....