Daily Digest

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Daily Digest 3/15 - Total U.S. Debt $69T, Student Loan Defaults On The Rise

Wednesday, March 15, 2017, 9:33 AM


More than 1 million student loan borrowers went into default last year

Overall, there were 4.2 million borrowers in default in 2016, up 17% from 3.6 million the year before, as some borrowers exited default while others remained in the red.

Pennsylvania GOP lawmakers sobering to huge budget deficit

But, this year, many rank-and-file Republicans seem more resigned to a reality that the deficit — nearly $3 billion through next summer, according to the state's nonpartisan Independent Fiscal Office — cannot be swept away easily.

Plan to save S.C. pension would make local governments pay

South Carolina's pension plan is in trouble. According to the state treasurer, it is 24-billion dollars in debt. Teachers, law enforcement, county and city employees could lose their retirement if something isn't done soon. A bill making its way through the state house is supposed to save the state's pension plan. However, local leaders believe it would kill small counties. Not only will state employees have to pay more into their retirement but the bill would also force local governments to pick up the tab.

Board to Puerto Rico: Cut pension system, impose furloughs

A federal control board on Monday said Puerto Rico's government needs to cut its public pension system by 10 percent, furlough tens of thousands of its workers and eliminate Christmas bonuses if it cannot generate other types of savings amid a nearly decade-long recession.

Rising rates will speed up the clock on retail's $3.7 billion time bomb

After years of low rates fueled a private equity "feasting" on retail firms, the number of troubled chains has tripled over the past six years, and is now at its highest level since the Great Recession.

Chinese Leaders Back Bankruptcies for Unwanted Zombie Firms

Chinese authorities are devoting more resources to tackle corporate restructurings and bankruptcies as bad debts at banks soared to an 11-year high in 2016 and bond defaults more than quadrupled in the period.

Student loan defaults are rising faster than you think

The Consumer Federation of America released a study Tuesday that found that millions of people had not made a payment on $137 billion in federal student loans for at least nine months in 2016, a 14 percent increase in defaults from a year earlier. The consumer watchdog used the latest data from the Education Department, which manages $1.3 trillion in federal student debt owed by 42.4 million Americans.

BOK under fire for error in household debt statistics

The issue is serious for the BOK because Lee for months has been stressing the need to curb household debt, which reached 1.34 quadrillion won as of the end of 2016, or about 83 percent of gross domestic product.

Just so you know: Total U.S. debt and other obligations now total $69 trillion

Lacy Hunt, an economist with Hoisington Investment, estimated at a recent conference held by Grant’s Interest Rate Observer that debt of all kinds in the U.S. now totals more than $69 trillion. That’s more than double the $30 trillion recorded by Fed statisticians as recently as 2000. If the Hunt figure is correct, then total debt is now about 370% of GDP, up from 294% in 2000.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/14/17

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."


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How the world's central banks have set interest rates since the


How the world's central banks have set interest rates since the financial crisis - in one chart

Telegraph.co.uk - ‎1 hour ago‎
Some central banks have taken taken the drastic measure of implementing negative interest rates in order to encourage economic growth. The European Central Bank's deposit rate has been at -0.4pc since early 2016 while the Swiss National Bank's lending ...

WRAPUP 1-Canada home resales rise, debt-to-income hits fresh ...

Reuters-42 minutes ago
WRAPUP 1-Canada home resales rise, debt-to-income hits fresh record ... recent years, sparking concern about a housing bubble and the impact it will have on ...

Illinois General Assembly Retirement System Only 13.52% Funded ...

FXStreet-8 hours ago
Illinois' type of payment plan, which fails to cover interest, is called “negative amortization.” The debt principal continues to grow because the pension payment ...

The Euro Will Collapse Soon, Let Us Hope It Is Orderly

Huffington Post UK-21 hours ago
But the incentive is for the countries to keep on borrowing. Since 2007 Spain has increased its national debt from €525 million to €1.1 trillion as a result of these ...

As San Diego Unified Prepares To Cut 977 Positions, Teachers ...

KPBS-13 hours ago
This, despite a $124 million dollar deficit and the 1,476 pink slips that started going ... The district says the layoffs are necessary to deal with rising pension costs ...


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Muh Freedom

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Calpers Slashes Pensions for Retirees of Defunct Agency

UPDATE 1-Foreigners sell US Treasuries for 10 straight months -Treasury data

Reuters - ‎17 hours ago‎
Foreign official institutions, which include central banks, were the biggest sellers of Treasuries, unloading $44.86 billion in U.S. government bonds, led by Germany, China, and emerging market central banks in Taiwan and India. That offset purchases ...

Swiss central bank sticks to negative rates ahead of French election

Nasdaq - ‎5 hours ago‎
[nL5N1GN4SF] The SNB said it remained committed to negative interest rates and currency interventions to rein in the Swiss franc, which it said remained "significantly overvalued". (Reporting by John Revill) (([email protected]; +41 58 ...

Japan's central bank keeps monetary policy, economic view

Kuwait News Agency - ‎6 hours ago‎
The BOJ will also continue applying a negative interest rate of minus 0.1 percent to part of accounts held by financial institutions at the central bank. The central bank kept its assessment of the domestic economy, saying, "it has continued its ...

Janet Yellen takes on the Fed's $4.5 trillion balance sheet question

CNBC-19 hours ago
At some point the Federal Reserve will have to begin to shrink its $4.5 trillion ... a cautious approach to unwinding the massive collection of debt it owns, and ...

Worried about the national debt? It's even worse for our cities.

The Hill (blog)-2 hours ago

Washington has repeatedly received criticism over its staggering debt. While you often hear of the $19 trillion in debt the federal government currently owes, you ..

States on Borrowing Binge Bad News for Modi and Indian Bonds

Bloomberg-12 hours ago
Increased competition from states is also bad news for the sovereign-debt ... Net borrowing by states will rise 12 percent to 3.8 trillion rupees ($58 billion) in the ...

Calpers Slashes Pensions for Retirees of Defunct Agency

Bloomberg-19 hours ago

Across the country, states and local governments have about $2 trillion less than ... If the cities do end up taking over the entity's debt within 60 days, the retirees ..

Fed hike will cost consumers $1.6 billion in credit card interest

CNBC-22 hours ago

For the 157 million Americans who carry a balance on their credit cards, Wednesday's Fed action is bad news. With credit card debt rising steadily, the ..

Bonds in Italy's Veneto banks slide further on 'bail-in' worries

Nasdaq-19 hours ago
Popolare di Vicenza and Veneto Banca together have 950 million euros in junior debt and 13.5 billion euros in senior unsecured debt, part of which is held by ...

Retiree costs time bomb still ticking (Palm Springs)

The Desert Sun-14 hours ago
... problem of this massive unfunded retiree health care liability in addition to the city's projected $110 million in pension liability. The admission was eye opening ...

Rough road ahead for CPS proposals in Springfield

Chicago Tribune - ‎15 hours ago‎
Bruce Rauner's administration tried another approach in the battle over Chicago Public Schools finances, urging lawmakers to back an effort from two Senate Republicans to both overhaul state pensions and send CPS $215 million that officials say is ...

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