
2) An internal government analysis warns that the U.S. government stands to lose more than $400 billion dollars from the federal student loan program, approaching the size of losses incurred by banks during the subprime-mortgage crisis. The Education Department, looked at $1.37 trillion dollars in student loans held by the government at the start of the year, then concluded that students will pay back $935 billion dollars in principal and interest, but this will still leave the American taxpayers stuck for $435 billion dollars. The losses are far steeper than prior government projections. Last year the Congressional Budget Office estimated that the student-loan program would cost taxpayers $31.5 billion dollars, including administrative costs. After decades of ‘no questions asked lending’, the government has piled up a toxic debt. By comparison, private lenders lost $535 billion dollars from subprime-mortgages of the 2008 financial crisis.
3) Metals stocks are rising with shares of United States Steel leading the sector with a 21.3% gain and steelmaker Cleveland-Cliffs up 10.1%, while Aluminum Corporation of China is up 11.3%. The rise is driven by an expected resurgence of car demand in the U.S. causing a global steel price surge at the same time as the U.S. steel market is enduring acute shortages in supply. Aluminum is a metal that automakers have been known to employ as an alternative and hence why Aluminum makers are also on the rise. Currently neither U.S. Steel nor Cleveland-Cliffs are a cash-generating enterprise, while Aluminum Corporation of China has generated a cool $1 billion dollars in real cash profit over the past year.
4) Stock market closings for – 27 Nov 20:
Dow 29,910.37 up by 37.90
Nasdaq 12,205.85 up by 111.44
S&P 500 3,638.35 up by 8.70
10 Year Yield: down at 0.84%
Oil: down at $45.29