prosopopoeia
pruh-so-puh-PEE-uh
2. A figure of speech in which an inanimate object or
something abstract is represented as possessing human form: personification.
Literally prosopopoeia is the putting of speeches into the mouths of others.
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TIP OF THE WEEK
Prosopopoeia can be used to take some of the load off the communicator by placing an unfavorable point of view on the shoulders of another person or object.
SBA lenders often do that by blaming SBA when something can’t be done.
In the case of refinancing debt with a SBA 7(a) loan, the debt being refinanced has to have been used for a purpose originally eligible for SBA financial assistance. Loans used to pay taxes are typically not eligible nor is debt to a shareholder. Seller financing for the sale of a business must be at least two years old. If the seller debt had been on standby, the clock does not start for the two year time period until payments to the seller begin.
Seller financing for the sale of owner user real estate has no two year requirement to be eligible for SBA refinancing.
The long awaited pending SBA implementation guidance on 504 debt refinancing is being released.
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Indices:
PRIME RATE= 3.25%
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SBA 504 Loan Debenture Rate for June
For 20 year debentures, the debenture rate is only 1.29%
but note rate is 1.31% and the effective yield is 2.770%.
For 25 year debentures, the debenture rate is only 1.47%
but note rate is 1.49% and the effective yield is 2.887%.
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AHEAD OF THE YIELD CURVE
Is inflation starting to get out of control? The markets say otherwise.
The Federal Reserve does not plan to raise interest rates
any time soon, right? The markets say
otherwise.
This prosopopoeia with the market was evidenced as the
news came out that the consumer price index rose 0.6 percent for the month of
May, the Treasury was selling $24 billion in 30 year Treasury bonds.
The 30 year Treasury bond high yield was awarded at 2.172
percent, down 22.3 basis points from last month's auction rate and the lowest
rate awarded for the bond in four months.
This almost quarter percent drop in long term bond yields
seems to concur with the Federal Reserve anticipation that transitory factors
will boost inflation readings and there is no need to consider raising interest
rates.
Keep your eyes and ears open for this week’s Federal
Reserve Open Market Committee meeting.
Eurodollar futures settle at a three- month lending rate
that has averaged about 22 basis points more than the Fed's target over the
past 10 years.
Here is a summary of what the market expects for
Eurodollar futures based upon the pit-traded prices at the Chicago Mercantile
Exchange:
DEC21- 0.18
DEC22- 0.35
DEC23- 0.85
DEC24- 1.37
DEC25- 1.77
DEC26- 2.08
What does all this mean?
I don’t know.
The December 2023 Eurodollar rate was at 0.665. It is now up to 0.85.
Prognostications proliferate over the protean slope of
the yield curve but now a procellous propugnaculum might be prospicient.
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OFF BASE
A classic example of prosopopoeia occurred when Yogi
Berra, speaking of a former Yankees manager, said: "If Miller Huggins was
alive today, he'd be turning over in his grave"
Hopefully there is no spinning in the grave over
Juneteenth becoming a national holiday.
Juneteenth is June 19th and has long been celebrated as the end of
slavery in the United States. When the
Civil War ended, on June 19, 1865 Union soldiers traveled to Galveston, Texas,
to spread the news. There, the troops found Black men, women and children still
enslaved, either because news of the Emancipation Proclamation hadn’t reached
them or the local white officials simply ignored it.
June 14th is Flag Day.
It commemorates the adoption of the flag of the United States on June
14, 1777, by resolution of the Second Continental Congress.
June 20th is Father’s Day. It is actually a national holiday in
several countries.
June 20th is also the summer solstice- the longest day of
the year. It is also Beach Boy Brian
Wilson’s birthday.
With our propensity to enjoy days off, it would seem
appropriate to lump all these days together into a three day weekend. Keeping with the spirit of the Uniform Monday
Holiday Act, the third Monday in June could be a national holiday.
This year the Fourth of July is on a Sunday. The Federal Reserve Board of Governors is closed
on July 5, 2021.
