Kentucky teacher pension officials are still asking for a $3.3 billion bailout of the system, saying it would increase the plan’s funded ratio from 53 percent to 66 percent and reduce the amount the state has to contribute.
The request for a delay comes after a series of internal Chicago Public Schools reports indicated that even if the school district drained its checking account, maxed out its credit card and burned cash set aside for other debts, it still would not be able to make the pension payment of more than $600 million, cover payroll and pay all the other due bills.
Jesse Ruiz, the school district’s interim CEO and board member, issued a statement Monday repeating assertions that CPS’ projected $1.1 billion budget deficit was “the result of shamefully low state education funding and a broken pension system that penalizes Chicago taxpayers and our city’s children.”
Regulations enacted since the global financial to make banks sound and prevent an implosion of the money market mutual fund industry have left less short-term debt instruments, such as bills and repurchase agreements, available. The shift has come while the U.S. Treasury reduces the amount of bills sold in favor of longer-maturity debt as part of plan to lock in lower borrowing costs with interest rates lingering close to historic lows.
Beijing is permitting provinces to issue at least 2.6 trillion yuan ($419 billion) in bonds in 2015, the first local-government issuances in more than 20 years, to stave off a debt crunch. Local administrations have accumulated some 18 trillion yuan in bank loans and bonds to fund risky land and property deals—equivalent to a third of China’s economy. As the real-estate market slows, state-owned banks that did much of the lending are on the hook.
On average, American households are $7,177 in debt, according to a CardHub study. That’s a lot of debt, but not necessarily an unconquerable amount. Now’s a good time to start digging your way out of it.
Those who sold property during that period made an average of $230,633 and more than a third of sellers doubled their money. Only 9 per cent of those selling properties recorded a loss, thus more than 90 per cent made a profit, CoreLogic RP Data shows.
The ECB’s balance sheet is steadily increasing as it rolls out a roughly 1 trillion euro scheme to buy government bonds and other assets known as “quantitative easing”.
The government’s fiscal health is the worst among major industrialized economies, with public debt at more than 200 percent of nominal GDP due mainly to swelling social security costs amid the aging society.
According to a survey of 1,000 adults released by Bankrate.com on Tuesday, nearly one in three (29%) American adults (that’s roughly 70 million) have no emergency savings at all — the highest percentage since Bankrate began doing this survey five years ago.
“I am not particularly troubled by the level of equity values overall. They are certainly higher than normal but in a world where financial market assets are expected to give low returns, P/Es should be high,” he said.
Consumers changing their cleaning patterns in response to a drought isn’t unheard of. Unilever Chief Executive Officer Paul Polman recently told analysts and investors that Brazilians are showering 15 percent less because of water shortages. Meanwhile, the company’s products that are geared toward helping consumers use fewer resources are growing twice as fast as its other brands, and they’re more profitable, Polman said at a conference this month.
Loan delinquencies at Brazilian banks rose in May for a second straight month, the latest sign that companies and individuals are struggling to remain current on their credit as Latin America’s largest economy deteriorates.
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