The McDonald’s Worker Budget and the Tyranny of Personal Finance

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July 19, 2013 by apicomely

While the New York Times reports CEO pay is up by 16 percent in 2012, the Bureau of Labor Statistics reported that wages fell 3.8 percent in the first quarter of 2013, the largest decline on record.Nonetheless, the Grand Poobahs of personal finance continue to judge. Take Today show contributor Jean Chatzky. She went on Morning Joe earlier this week to discuss the McDonalds budget. Yes, some of the numbers mentioned were crazy and living on the minimum wage is just not workable but dont forget, the corporate giant was well intentioned. Besides, whose fault is it anyway if you cant do better than a job flipping burgers?

Housing Finance Jumps to 6-Week High on Outlook: Nairobi Mover

More than six times the three-month daily average of shares were traded. Housing Finance, which said in February it will build 500 homes this year, reported a 59 percent increase in first-half net income to 397 million shillings ($4.6 million) in a statement yesterday. Net interest income, the money earned from interest charges on loans, increased 58 percent to 1.38 billion shillings. We expect further loan-book growth from rising credit demand as Housing Finance has lowered its base-lending rate to 16 percent from 18 percent and from a more stable macroeconomic environment, Vidur Dhingra, an analyst at Nairobi-based Kestrel Capital (East Africa) Ltd., said today in an e-mailed note.

Further Progress on Housing Finance

The Corker-Warner approach involves charging insurance premiums for the government guarantee, so the interest rate difference between the two systems ultimately depends on the insurance pricing. In general, though, a fully private system would be expected to involve greater changes in interest rates and the availability of mortgages with long-term fixed interest rates. Note that the Corker-Warner proposals 10 percent first-loss private capital is much closer to the House bill than it would seem just from comparing the required private capital shares of zero (the situation now) to 10 percent (Corker-Warner) and 100 percent (Hensarling). The total losses of Fannie and Freddie in the financial crisis were about 4 percent of their assets, so the 10 percent capital level in the Corker-Warner proposal makes the government guarantee very far back; this is an immense amount protecting taxpayers.

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