A recently released TIA report states that Minnesota’s financial condition is “drastically worse” than previous years because its state officials created a “staggering debt burden” of $17.6 billion. Based on TIA’s analysis of the state’s most recent financial filings, Minnesota has $19.4 billion in assets and $37 billion in bills. In order to pay off its debt, each taxpayer would have to pay $8,800.
According to Student Loan Hero, the total student loan debt has reached $1.48 trillion spread across 44.2 million Americans, and the latest release from the U.S. Department of Education in September of 2017 shows that default rates are climbing. According to the Education Department, the three-year cohort default rate for 2014 rose to 11.5% for federal student loans, up from 11.3% from the previous year
The populist party that scooped up the most votes in Italy’s election made a bold campaign promise: a guaranteed income of €780 ($960) a month for everyone.
3. New York City
The Big Apple has among the highest cost of living, so it’s not surprising it made the list of cities with the most credit card debt. The price for a one-bedroom apartment in Manhattan is more than $3,700 a month. Credit card debt averages $7,145 and the median income is low compared with the cost of living, at $38,951.
The Alternative Reference Rates Committee (ARRC) said that around $200 trillion in U.S. dollar-based derivatives and loans are based on Libor, with derivatives accounting for around 95 percent of the exposures.
Let’s engage in some grammar school math. Take the CBO estimate of debt held by the public of $16.5 trillion in 2020. A 5 percent average interest rate on that amount comes to annual debt service of $825 billion, an unfathomable amount. (In 2017, interest on the debt held by the public was $458.5 billion, itself a scary number.)
“We may adjust interest rates in the future depending on price developments. But I don’t have any plan now to raise short-term rates from the current minus 0.1 percent or abandon negative rates,” Kuroda told an upper house confirmation hearing.
The IEA predicts that within five years, the cushion of production capacity over expected demand will fall to its lowest level since 2007. That was the year before the price for oil in the U.S. surged close to $150. Prices are less than half that today.
What’s Driving Oil Prices Back Up? (Michael S.)
OPEC appeals to shale producers in Houston. OPEC officials, along with energy executives and oil analysts, gathered in Houston on Monday for the annual CERAWeek Conference. On Monday, several OPEC officials downplayed what is often billed as a rivalry with U.S. shale. OPEC Secretary-General Mohammed Barkindo said there is a “common understanding” between the two sides and that “we all belong to this industry.” OPEC officials had dinner with top shale executives on Monday in an effort to increase dialogue. However, Nigeria’s oil minister was a little less diplomatic than Barkindo, arguing that shale companies need to share the burden with OPEC. “We need to begin to look at companies that are very active in these areas and begin to get them to take some responsibilities in terms of stability of oil prices,” Nigerian Oil Minister Emmanuel Ibe Kachikwu told Reuters.
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