Smoothing was designed to even out the City’s pension contributions so they would not bounce around in an unpredictable manner based on the ups and downs of the stock market. But this has resulted in an understatement of the unfunded pension liability of $750 million as the cooked up actuarial value of its assets exceeds their market value by the same $750 million.
Now defaults are on the rise as well. More than 5.6% of some $390 billion worth of commercial property mortgages that have been packaged into securities was more than 60 days late in payment in September, according to Moody’s Investors Service. That was up from a 4.6% delinquency rate earlier this year.
The budget deficit is on course to reach 67 billion pounds in the current fiscal year, almost 12 billion pounds more than officials estimated in March, it said in a report published Tuesday. Britain will still have a shortfall of 18 billion pounds in 2019-20, the year it was meant to have a 10 billion-pound surplus.
Word of the delayed sale came as financial analysts at Standard & Poor’s said familiar financial concerns prompted the agency to drop the school system’s credit rating deeper into junk territory last week.
An accounting dispute with the auditor general over how pension assets should appear on the books is adding $2.2 billion to the deficit this fiscal year, but the government insists it will reach balance by its self-imposed deadline of 2017-18.
New Jersey’s pension system had about $136 billion less than it needs to cover all the benefits due when workers retire, the result of the state’s more than decade-long failure to put enough money into the fund each year. Those annual payments are now soaring as the government is under pressure to pay down that debt, exerting a strain on New Jersey’s budget.
Greece signed up to a third economic bailout package of up to 86 billion euros ($93 billion) in mid-2015 but says that it needs a long-term debt restructuring to emerge from the worst economic downturn in generations.
While the CEO has pledged to raise 5 billion euros in capital, the deal is under threat from an Italian referendum on Dec. 4 that could topple the government of Prime Minister Matteo Renzi and further undermine investor confidence in the country’s troubled lenders.
At 30 years old, Alluto’s trip on the road of life has a big pothole: $104,000 in college debt. She says this six-figure detour has derailed her plans – her picture-perfect life erased. “I’ll never get married or buy a house or buy a new car or any of that stuff, no,” she says. “It’s out, out of the picture – kids, all of that. Why would I do that to my children?“
Yet tax revenue for the 12 months ending March 31 is likely to be lower than originally expected, as economic growth has been weaker than initially forecast, and government debt is already about 2.5 times the size of the economy.
Asset sales, restructuring, cancelled subsidies and layoffs are all on the table as Beijing struggles with mounting outstanding local government debt
The market value of the world’s negative-yielding bonds plunged 14 percent last week to $8.7 trillion as investors dumped government debt at a record clip after Donald Trump’s upset win stoked speculation that his ambitious fiscal plan would flood the market with new Treasuries and boost inflation.
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