Daily Digest

Daily Digest 10/5 - Greece Has Weeks Left Before Bankruptcy, Copper Thieves Target Freeways, Food Stamp Use Triples

Wednesday, October 5, 2011, 9:40 AM
  • Italy government bonds downgraded by Moody's
  • Dexia to Set Up 'Bad Bank' With Guarantees From France, Belgium
  • French Min: Euro Strength Takes EUR3 Billion-EUR4 Billion Off 2011 Exports
  • Spain Drugmakers Plan $7 Billion Unpaid-Bill Securitization
  • Delaware County Government Cuts Back to Four-Day Week
  • Greece has weeks left before bankruptcy
  • Proposed Nassau County Budget Cuts Becoming Clearer
  • Bloomberg to impose hiring freeze today
  • Copper thieves target Phoenix freeways
  • Spain endures unemployment woes as jobless total hits 4.2 million
  • Bernanke warns Congress against deep spending cuts
  • CTA Facing $277M Deficit in 2012: Claypool
  • Food-stamp use triples as local despair grows
  • ‘Sesame Street’ Special on Hunger Introduces New Muppet Character
  • Cost of living soars in Bay Area and Solano County
  • Higher Borrowing Means Central Bank to Buy Bonds: India Credit
  • Berkeley food programs short on funds as demand rises
  • National debt passes $14.8 trillion
  • EU preparing bank rescues amid Greece doubts

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

Economy

Italy government bonds downgraded by Moody's

Moody's Investors Service Monday downgraded Italy's government bond ratings to "A2" with a negative outlook from "Aa2," the result of high debt, a weak global economy and political uncertainties that delay corrective action. While the change moves the rating down three notches, it is still investment grade. Moody's affirmed the short-term ratings at Prime-1.

Dexia to Set Up 'Bad Bank' With Guarantees From France, Belgium

Dexia SA, Belgium's biggest bank, plans to pool its troubled assets into a "bad bank" with Belgian and French government guarantees to protect depositors and its municipal-lending business.

French Min: Euro Strength Takes EUR3 Billion-EUR4 Billion Off 2011 Exports

The euro is too strong and will cost France between EUR3 billion and EUR4 billion in exports this year, the French trade minister said Tuesday.

"It is incontestable that the over-valuation of the euro compared to other big currencies harms our exports," Pierre Lellouche told reporters. He said China accounts for most of France's trade gap--EUR26 billion of last year's EUR51.7 billion deficit.

Spain Drugmakers Plan $7 Billion Unpaid-Bill Securitization

“It would allow the payment of the debt to be deferred by several years and has a government guarantee which allows it to be sold in the market,” Arnes said. “The mechanism allows a delay until Spain is in a financial and economic situation that allows it to face the pharmaceutical bill,” he said.

Spain’s regional governments are struggling to pay suppliers as the collapse of the real-estate boom has slashed their tax revenue while access to capital markets has narrowed. The regions, which control health and education, have racked up record amounts of debt during the crisis, and together owe more than twice what they did in 2007, Bank of Spain data shows.

Delaware County Government Cuts Back to Four-Day Week

The county is cutting back to a four-day week as part of as package of budget cuts. County Commissioners president Todd Donati says having workers stay home will save nearly $600,000 in pay, plus whatever the county can save on utilities.

The county had to close an $8 million shortfall for 2012. Donati says the bulk of the money is being made up by stowing less cash in the county's rainy day fund.

Greece has weeks left before bankruptcy

Greece has enough money to pay pensions, salaries and bondholders through mid-November, the finance minister said Tuesday, as global markets sank on worries that a messy default could bring down European banks and trigger another global recession.

Proposed Nassau County Budget Cuts Becoming Clearer (NY)

These are dire fiscal times for Nassau County and what might be done to fill the budget gap is now coming into view.More than a thousand workers would face layoffs, but that’s only part of it.

Museums that don’t generate revenue would close.

Bloomberg to impose hiring freeze today (NY)

Mayor Bloomberg is going to impose a hiring freeze today, The Post has learned. With the stock market tanking and the city grappling with a $4.6 billion project deficit next year, Bloomberg is expected to issue a memo to agency heads today limiting hiring to positions needed to protect public health and safety.

Copper thieves target Phoenix freeways

In the past year, thieves have struck more than 200 times, taking copper out of lights and signs, costing taxpayers about a half-million dollars.

"If there's a bank of lights out along the freeway nowadays, you can really assume that that's the result of a copper theft," said Doug Nintzel of the Arizona Department of Transportation.

Spain endures unemployment woes as jobless total hits 4.2 million

Further gloom spread across Spain on Tuesday as it experienced its worst September increase in registered unemployment for at least 15 years to reach 4.2 million people. The sudden pickup in the rhythm at which Spaniards have been signing on at unemployment offices was a further blow to a country that already has Europe's worst jobless rate of 21%. The latest surge was blamed on a number of public sector layoffs as Spain bowed to deficit control demands and regional governments sacked teachers and health workers.

Bernanke warns Congress against deep spending cuts

Federal Reserve Chairman Ben Bernanke is reiterating that Congress should not cut spending sharply while the economy is weak.

Bernanke tells the Joint Economic Committee that lawmakers face a delicate challenge: They must avoid making deep spending cuts that could impede the recovery.

CTA Facing $277M Deficit in 2012: Claypool (Chicago)

CTA President Forrest Claypool said Tuesday the transit authority is facing a $277 million budget deficit for 2012.

Claypool outlined the CTA's fiscal state during a morning address to the City Club of Chicago at a public policy breakfast. He said the agency borrowed $554 million in the past four years, despite a fare hike in 2009 and cuts in 2010.

Food-stamp use triples as local despair grows (Florida)

The load on the state's safety net for Palm Beach County's poorest families has tripled since the 2007, with staggering increases every year in the number of individuals using food stamps to feed their families.

In Palm Beach County, 161,250 of the county's 1.3 million residents - 12.4 percent - received food stamps in August, close to 22,000 more than last year and triple the amount from August 2007, according to data from the state Department of Children and Families. The number of low-income, elderly and disabled people who received Medicaid through DCF has also steadily increased throughout the last four years, from 90,163 in August 2007 to 152,686 in August 2011.

‘Sesame Street’ Special on Hunger Introduces New Muppet Character

The familiar address of Sesame Street is about to get a new visitor, one who could surely benefit from the sunny days and friendly neighbors there. For a prime-time special to raise awareness about hunger faced by American families, Sesame Workshop, the nonprofit organization that produces “Sesame Street,” has created a new Muppet character named Lily, a 7-year-old girl representing one of the 17 million American children that the Department of Agriculture estimates are “food insecure,” meaning their access to food is limited or uncertain.

Cost of living soars in Bay Area and Solano County (California)

Solano County families are struggling to make ends meet more than ever as worker pay lags well behind the ever-rising cost of living, according to a report issued today by the United Way of the Bay Area.

According to the Insight Center for Community Economic Development, in partnership with politicians and agencies throughout the state, the updated 2011 California Family Economic Self-Sufficiency Standard offers a county-specific measure of the true cost of living for families. Its findings show that the Bay Area cost of living has soared 18 percent since the beginning of the recession while wages lag behind and unemployment has risen. The Self-Sufficiency Standard reveals that the cost for basic needs in the Bay Area -- such as rent, food, health care, child care, transportation and taxes -- has soared 18 percent since 2008. At the same time, wages have only increased 2 percent while regional unemployment rates have increased 72 percent during the same period.

Higher Borrowing Means Central Bank to Buy Bonds: India Credit

India’s central bank may buy bonds for the first time in nine months to cap rising yields as outflows from national savings accounts forced the government to increase debt sales.

Berkeley food programs short on funds as demand rises

At a time when an increasing number of families need help putting a meal on the table, the Berkeley Food Pantry has a severe financial shortfall that threatens to jeopardize its emergency aid program.

If a promised check from the Federal Emergency Management Agency (FEMA), which administers the Emergency Food and Shelter National Board Program, doesn’t show up within days, the pantry may not be able to help hungry Berkeley and Albany residents who line up for two bags of groceries later this week.

National debt passes $14.8 trillion

$14,837,099,271,196.71

EU preparing bank rescues amid Greece doubts

European finance ministers agreed on Tuesday to prepare action to safeguard their banks as doubts grew about whether a planned second bailout package for debt-laden Greece would go ahead.

Collapsing confidence in French-Belgian municipal lender Dexia SA , which hours earlier became the first European bank to have to be bailed out due to the euro zone's sovereign debt crisis, looked to have concentrated minds.

"Everyone said the big concern is that worrying developments on the financial markets will escalate into a banking crisis," German Finance Minister Wolfgang Schaeuble told a news conference after EU ministers met in Luxembourg.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

5 Comments

saxplayer00o1's picture
saxplayer00o1
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
$14,856,859,498,405.73

 

Treasury Direct link

The Daily History of the Debt Results

Historical returns from 09/28/2011 through 10/04/2011

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

 

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/28/2011 10,075,624,342,810.54 4,626,258,826,982.71 14,701,883,169,793.25
09/29/2011 10,074,983,373,804.28 4,620,118,734,433.74 14,695,102,108,238.02
09/30/2011 10,127,031,384,654.10 4,663,308,943,903.05 14,790,340,328,557.15
10/03/2011 10,124,029,835,382.19 4,713,069,435,814.52 14,837,099,271,196.71
10/04/2011 10,124,774,418,608.86 4,732,085,079,796.87 14,856,859,498,405.73
Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
saxplayer00o1
saxplayer00o1 wrote:

 

Treasury Direct link

The Daily History of the Debt Results

 

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/28/2011 10,075,624,342,810.54 4,626,258,826,982.71 14,701,883,169,793.25
09/29/2011 10,074,983,373,804.28 4,620,118,734,433.74 14,695,102,108,238.02
09/30/2011 10,127,031,384,654.10 4,663,308,943,903.05 14,790,340,328,557.15
10/03/2011 10,124,029,835,382.19 4,713,069,435,814.52 14,837,099,271,196.71
10/04/2011 10,124,774,418,608.86 4,732,085,079,796.87 14,856,859,498,405.73

At that rate, it will go over $15T within a week.....

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Protests in Saudi Arabia too now...?

http://www.independent.co.uk/news/world/middle-east/saudi-police-open-fire-on-civilians-as-protests-gain-momentum-2365614.html

 

Saudi police open fire on civilians as protests gain momentum

By Patrick Cockburn

Wednesday, 5 October 2011

Saudi Arabia last night confirmed there had been fighting in the region and that 11 security personnel and three civilians had been injured in al-Qatif, a large Shia city on the coast of Saudi Arabia's oil-rich Eastern Province. The opposition say that 24 men and three women were wounded on Monday night and taken to al-Qatif hospital.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Behind Europe's Debt Crisis Lurks Another Giant Bailout of Wall

ROBERT REICH: Behind Europe's Debt Crisis Lurks Another Giant Bailout of Wall Street

Yesterday Ben Bernanke added his voice to those who are worried about Europe’s debt crisis.

But why exactly should America be so concerned? Yes, we export to Europe – but those exports aren’t going to dry up. And in any event, they’re tiny compared to the size of the U.S. economy.

If you want the real reason, follow the money. A Greek (or Irish or Spanish or Italian or Portuguese) default would have roughly the same effect on our financial system as the implosion of Lehman Brothers in 2008.

Financial chaos.

Investors are already getting the scent. Stocks slumped to 13-month low on Monday as investors dumped Wall Street bank shares.

The Street has lent only about $7 billion to Greece, as of the end of last year, according to the Bank for International Settlements. That’s no big deal.

But a default by Greece or any other of Europe’s debt-burdened nations could easily pummel German and French banks, which have lent Greece (and the other wobbly European countries) far more.

That’s where Wall Street comes in. Big Wall Street banks have lent German and French banks a bundle.

The Street’s total exposure to the euro zone totals about $2.7 trillion. Its exposure to to France and Germany accounts for nearly half the total.

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