Daily Digest 3/8 - Italy's Liabilities Hit New Record High, WI School Districts' Debt Soars
In per-pupil terms, the report says, borrowing has more than tripled from $2,313 in 2010 to $9,733 last year. And it shows no signs of abating. This spring, 23 districts have asked or will ask voters to approve nearly $708 million in new debt.
A state Senate bill that promises to fix California's battered roads and bridges with $6 billion a year from gas tax and vehicle registration fee increases is set to go before the Governance and Finance Committee on Wednesday.
The market for high-yield mining and energy debt is suffering from the some of the same issues that sparked the 2008 crisis as investors turn a blind eye to poor credit in their desperation for fatter returns, according to an executive with one of Canada’s largest hedge funds.
Illinois has about $78 billion in assets on hand to pay for pensions. But the present value of the state’s accrued liability is $208 billion. That leaves a difference of $130 billion, which is money the state owes – but doesn’t have.
Xiao’s comments came as the immediate risk of defaults in local government debt, once regarded as a potential source of a financial crisis in the country, have been reined in after Beijing has so far swapped over 8 trillion yuan (US$1.1 trillion) of local government debt with low-interest, long-term bonds.
• It's almost $159,000 for each of the 125.8 million U.S. households.
• It's as if each child immediately inherits a $62,000 mortgage at birth from Uncle Sam, without the house.
• If you lined up 20 trillion dollar bills end to end, they would stretch to the moon and back — 4,056 times.
The Bank of Italy has said the widening seen last year was driven instead by Italians diversifying, moving away from government bonds and putting a larger share of their savings into foreign assets, as well as by the bond purchases carried out by the European Central Bank as an extraordinary monetary policy measure.
New Zealand household debt was over NZ$260 billion ($182.21 billion) in 2016, at a record high of 168 percent of household income, according to central bank statistics. Almost 90 percent of that is caught up in property loans.
TheReserve Bank of Australiaheld rates at a record low 1.50 percent as expected on Tuesday and signaled economic conditions were in line with its inflation and growth targets.
Brazil's gross domestic product contracted by 3.6 percent in 2016, statistics agency IBGE said, following a 3.8 percent drop in 2015. The nation's two-year downturn is the longest and deepest on record for Latin America's biggest country.
Banks in the euro zone, flush with new deposits, have turned few of them into loans to companies and consumers. Instead they’ve parked most of the money at the European Central Bank, where they’re paying billions of euros for the privilege of keeping it there.
This compared with $9.1 trillion of negative-yielding sovereign debt on Dec. 29, 2016. The amount of negative-yielding European and Japanese government debt peaked at about $11.7 trillion last June, according to the rating agency.
Euro zone central banks are buying 80 billion euros ($85 billion) worth of mostly sovereign debt every month, pumping money into the economy to revive euro zone inflation.
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