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    Daily Digest 5/7 – France’s Budget Gap Widens, Australia Faces Decade Of Debt

    by saxplayer00o1

    Wednesday, May 8, 2013, 2:03 PM


Unemployment haunts Social Security recipients

Losing your job is a nasty shock at any age, but for older Americans nearing retirement, there’s an extra kick: A late stretch of unemployment will haunt them throughout their Golden Years in the form of lower Social Security payments.

Spanish Banks Refinanced, Restructured $272.4 Billion in Loans

An economic slump in its sixth year is generating mounting defaults for Spanish lenders that in some cases refinanced or restructured more loans to avoid booking losses. The central bank said on April 30 it told lenders to review their refinanced portfolios “without delay” to avoid differing interpretations of how to classify loans.

Australia faces decade of debt, economists warn

AUSTRALIA faces at least a decade of debt until the billions in borrowings under Labor can be wiped from the Budget books, according to economists.
Treasurer Wayne Swan declined to comment yesterday on when he thought the current $144 billion net debt level could be repaid while shadow treasurer Joe Hockey would only say reducing debt was a “medium-term” proposition.

France’s budget gap widens in March

At the end of March, France recorded a wider budget deficit at 31 billion euros (40.65 billion U.S. dollars) compared to 29.4 billion euros a year ago, government data showed on Tuesday.

L.A. city employees urge leaders to go after uncollected fees, taxes to balance $7.7B budget

In his last budget proposal, Mayor Antonio Villaraigosa offered a “balanced” $7.7 billion spending plan, which included canceling a scheduled 5.5 percent pay raise and having workers pay 10 percent of their healthcare insurance.

Copper theft epidemic has lawmakers looking for answers

There’s a short answer to why copper metal thefts are so high.
Ten years ago, copper futures were trading at $.80 cents per pound on the Chicago Mercantile Exchange. Today’s, it’s trading around $3.40 per pound, down from a 52 week high of $3.81 per pound.
Because it can be found anywhere and is hard to trace, the copper theft can be very lucrative.

Wall Street sees Fed buying $1.25 trillion of assets in stimulus: Reuters poll

Wall Street is looking for the Federal Reserve to buy a total of $1.25 trillion of assets under its latest debt purchase program intended to stimulate the economy, according to a Reuters poll conducted on Friday.

India’s cheap food plans to prove costly for government

The National Food Security Bill, which aims to feed 70 percent of the population, could widen India’s already swollen budget deficit next year, increasing the risk to its coveted investment-grade status.
The ambitious bill, a priority for Congress President Sonia Gandhi, will raise India’s annual food subsidy spending by 45 percent.

French Industrial Output Drops as Hollande Aims to Revive Growth

With joblessness at a record 3.22 million after the economy shrunk in the fourth quarter, Hollande is trying to trim the budget deficit and revamp the economy without further damaging growth.

Wichita school district counts record number of homeless children

Wichita schools have set a record that no parent or teacher wants to see. As of midday Monday, educators and social workers had identified 2,251 homeless children attending Wichita schools this year.
That’s 518 more than last year – and still counting with two school weeks to go

Greenspan-Era Faith in Fed Seen With Bernanke: Chart of the Day

Record lows for the MOVE Index, an indicator of U.S. bond volatility, suggests that investors may be overly confident in the Federal Reserve’s ability to prop up the market, according to Michael Shaoul, Marketfield Asset Management’s chief executive officer.

Many Americans say they can’t retire until their 70s or 80s

It’s the new retirement: More than four in 10 Americans think they’ll have to work into their 70s or 80s because they can’t afford to retire, according to a new survey.
One in 10 people expects to toil into their 80s, while 32% expect to be on the job into their 70s, according to the report by insurer Northwestern Mutual.

Bankers Warn Fed of Farm, Student Loan Bubbles Echoing Subprime

A group of bankers that advises the Federal Reserve’s Board of Governors has warned that farmland prices are inflating “a bubble” and growth in student-loan debt has “parallels to the housing crisis.”

Australian Central Bank Cuts Key Rate to Historic Low

The Australian central bank dropped its key interest rate to a record-low 2.75 percent Tuesday, becoming the latest central bank in recent weeks to try to stimulate growth.

New red light camera law could raise cost of appeals

Critics warn that putting municipalities, which benefit from fines, in charge of the process creates an incentive to deny appeals. Drivers could pay up to $408.
Appealing a red-light camera citation in Florida could be getting a whole lot more expensive.
Drivers who challenge camera citations and lose could pay as much as $408 under a new state law passed last week.

Moody’s Says Cities View ‘Strategic Default’ as Less Taboo

The number of defaults from U.S. municipal issuers rated by Moody’s Investors Service has more than tripled to an annual average of 4.6 since 2007, showing willingness to pay can’t be taken for granted, the company said in a report.

Gold & Silver

Click to read the Gold & Silver Digest: 5/7/13

Provided daily by the Peak Prosperity Gold & Silver Group

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