discursive
dis-KUHR-siv
1. Jumping from
topic to topic; rambling.
2. Proceeding
logically, using reason or argument rather than emotion.
From Latin
discurrere (to run about), from dis- (apart) + currere (to run).
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TIP OF THE WEEK
TIP OF THE WEEK
SBA has revised
SBA form 413, the personal financial statement.
Make sure that you
are using the current version that has an expiration date of
01/31/2018.
While a personal
guarantee will always be required with a SBA loan, guidance for SBA 7(a) loans
don’t necessarily require the personal guarantee be secured by personal real
estate.
_____________________________________
Indices:
Indices:
PRIME
RATE= 3.25%
SBA
LIBOR Base Rate March 2015 = 3.17%
SBA
Fixed Base Rate March 2015 = 5.15%
________________________________________
SBA 504 Loan Debenture Rate for March
SBA 504 Loan Debenture Rate for March
The debenture rate
is only 2.72% but note rate is 2.76% and the effective yield is 4.799%.
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AHEAD OF THE YIELD CURVE
AHEAD OF THE YIELD CURVE
Will Good Friday
be a good Friday?
That’s when the
Bureau of Labor Statistics will release its jobs report for the month of
March.
February reflected
total employment increasing 295,000. The year-over-year change was 3.3 million
jobs. This was the highest year-over-year gain since March of
2000.
Here is a summary
of net payroll employment and this week’s interesting little table of
data:
January
239,000
2014
3,116,000
2013
2,074,000
2012
2,193,000
2011
2,103,000
2010
1,022,000
2009
-5,052,000
2008
-3,617,000
2007
1,115,000
2006
2,071,000
2005
2,484,000
2004
2,019,000
What does all this
mean?
I don’t
know.
Revisions to
employment gains in December and January ended up 18,000 lower than previously
reported. There will be additional revisions with the report for
March.
The Federal
Reserve at its last meeting on monetary policy slightly downgraded its economic
outlook, saying that growth "has moderated somewhat."
It said it will
raise its benchmark short-term rate, now near zero, only when the labor market
improves further.
There was a lot of
consternation after the Fed's policymaking committee dropped a pledge to "be
patient" as it considers raising the fed funds rate.
Despite claiming
to no longer being patient, Federal Reserve officials lowered their median
estimate for the federal funds rate at the end of 2015 to 0.625 percent,
compared with 1.125 percent in December forecasts.
The 30-year
Treasury bond yield has declined to 2.529% as inflation remains below the
Federal Reserve’s 2 percent target, increasing speculation the central bank
won’t rush to raise interest rates.
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OFF BASE
OFF BASE
The
Federal Reserve unexplainably does not recognize Good Friday as a bank
holiday.
It
should as its existence can be tied in some ways to Good Friday itself.
While
Good Friday isn't a federal holiday, it is a stock market and bond market
holiday. After being usually closed on Good Friday, 1907 was the final year in
which the exchange was open on Good Friday.
That
last one was the same year as the infamous Panic of 1907, when the total value
of all Big Board stocks plunged by more than a third.
Traders
took it as a sign from God that he didn’t want the exchange open.
By
November 1907, the aggregate value of all shares on the NYSE had plunged 37
percent, and at least 25 banks and 17 trust companies
collapsed
The
crisis ultimately prompted the creation of the Federal Reserve
system.
So
what is Good Friday?
The day marks the
crucifixion and death of Jesus Christ. How could that possibly be considered
good?
Many believe this
name simply evolved—as language does. Originally it was called "God's Friday."
This seems a
reasonable conjecture, given that "goodbye" evolved from "God be with
you."
Goodbye.
