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    Daily Digest 5/29 – BOJ Has Room For More Stimulus, Spain’s ‘Lost Generation’

    by saxplayer00o1

    Wednesday, May 29, 2013, 2:46 PM

Economy

Spain's 'Lost Generation': Youth Unemployment Hits 57 Percent (Huffington Post)

From the beginning of 2012 to the end of March, some 365,000 Spaniards between the ages of 16 and 29 have left the country, according to the National Statistics Institute.

Euro shares edge higher after ECB stimulus vow

"I expect the major markets to test resistance levels of last week as investors are still seeking higher highs and new record levels in the near term, whilst the central banks are continuing their quantitative easing operations," said Tom Robertson, senior trader at Accendo Markets.

The European Central Bank's Executive Board member Joerg Asmussen said yesterday the bank will stick to its expansive monetary policy for as long as necessary.

Senior citizens struggle with mounting debt

It used to be that many Americans entered retirement having paid off their mortgages and most of their other debts. This should have been senior citizens' Golden Years.

Nowadays, more and more people over the age of 65 are struggling with mounting debt levels, fueled primarily by mortgages and credit cards. The average debt held by senior citizens has ballooned to $50,000 in 2010, up 83% since 2001, according to Federal Reserve data crunched by the Employee Benefit Research Institute.

Student debt crisis: 'it's like carrying a backpack filled with bricks'

What's interesting is that Amy's younger brother did not go to college, yet his life is financially far better off. "I used to do my work before I went out to play. But he would just take off and, you know, do whatever. He was a gangster wannabe!" Amy's brother has no college degree, no student loan debt, and earns far more than Christian. He also has a huge home in the Midwest and frequently takes expensive vacations.

Pension liabilities worry city bond-rating agency (Tucson)

With about $1 billion in unfunded liabilities combined between the city's four pension programs, Fitch considers "the weak funding levels for all programs as a negative credit factor."

The biggest problem for the city are its police and fire pension funds, Fitch noted. Next fiscal year alone, the city will pay $42 million for the two retirement funds, a 20 percent increase from the current year. Just a decade ago, the city paid less than $5 million a year for public-safety pensions.

Next NYC Mayor facing $7.8B fiscal cliff from unions who haven't received a raise in years

Disaster looms in 2014 as city faces tax hikes, service cuts or both as next mayor inherits bill and one epic challenge.

BoJ boss puts faith in Japan's 'resilience'

Mr Kuroda and Japan's Prime Minister, Shinzo Abe, have launched a vast stimulus program, promising in April to inject $US1.4 trillion into the economy in less than two years through quantitative easing, to jolt the Japanese economy out of a 15-year deflationary malaise and lift inflation to 2 per cent.

The policy triggered a huge sharemarket rally. But a surge in bond yields, which means bond prices have fallen, has threatened to make government borrowing expensive. Domestic banks could be forced to take losses on their large holdings of Japanese government debt.

Euro leaders unite to tackle soaring youth unemployment rates

More than 7.5m young Europeans aged between 15-24 are not employed or in education or training, according to European Union data. The rate of youth unemployment is more than double that of adults, and more than half of young people in Greece (59%) and Spain (55%) are unemployed.

François Hollande, the French president, dubbed them the "post-crisis generation", who will "for ever after, be holding today's governments responsible for their plight".

D.C. speed light cameras bring in millions for the District

The District has found a great source of income in speed camera on one of the busiest thoroughfares in the city. One box that sits on K Street has generated $8.1 million from ticketing drivers—specifically from issuing 61,061 speeding tickets in seven months, The Washington Post reported. Local drivers’ losses are the District’s Treasury’s gain.

BOJ has room for more stimulus, top Abe adviser says

Koichi Hamada, a retired Yale University professor advising Prime Minister Shinzo Abe, says the Bank of Japan can add to already unprecedented stimulus if necessary to drive an economic revival.

BOJ Gov. Haruhiko Kuroda “should continue to trust in his judgment and ease further” if needed, said Hamada, 77, who was tapped by Abe last year to advise on monetary policy. A stock slump was “a natural correction” and “Abenomics” is working “as well as or better than expected,” Hamada said.

Gold & Silver

Click to read the Gold & Silver Digest: 5/28/13

Provided daily by the Peak Prosperity Gold & Silver Group

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."

About the Guest
Bill Black

Bill Black is an associate professor of economics and law. He was the executive director of the Institute for Fraud Prevention from 2005-2007. He previously taught at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics.

Professor Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.

His book, The Best Way to Rob a Bank Is to Own One (University of Texas Press 2005), has been called “a classic.” Professor Black recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae’s former senior management.

He teaches white-collar crime, public finance, antitrust, law and economics, and Latin American development.

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