Daily Digest

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Daily Digest 3/29 - Pension Crises Ahead, N.J. Credit Rating Cut 11th Time

Wednesday, March 29, 2017, 9:23 AM


Healthcare to triple in cost for retired Texas teachers

We pay about $450 a month. I have heard possibilities of it going up to more than $1,800 a month. But I think it will probably be raised $1,000,” said Merriman, 63.
That's more than her monthly pension.

Bill aims to address high health care costs (California)

In California, from 2004 to 2013, prices grew 113 percent at hospitals that are part of the largest systems, according to a 2016 study coauthored by economist Glenn Melnick. By comparison, prices across all hospitals in the state grew 70 percent.

Why local governments and school districts are wrestling with unfunded pension liabilities

One reason this has happened over the last 10 to 15 years is that companies are not getting enough return on their investments. People expect pension funds to earn about 7-8% on average every year, but they've fallen short of that.

Pension cuts looming for Ohio teachers and retirees

All told, the changes will pile on an additional $6.5 billion in accrued liabilities — a gap in money available to pay promised benefits. Ohio pension systems are required to be able to pay off their unfunded liabilities within a 30 year window.
But changing the assumptions used by STRS means the system’s funding period will jump from 26.6 years to 59.5 years. This will require STRS to come up with a new plan to get back within the 30-year window.

Pension Crisis Ahead: Why Public Employees Should Think About A Golden Nest Egg Now

If public pension funds used the same projection method as their private counterparts, their deficit would be around $3.4 trillion—that’s a whopping 19% of U.S. GDP.

Spain’s Social Security shortfall rises to €18.6 billion in 2016

Contributions to Social Security, which are closely tied to jobs, represent over 80% of the system’s entire budget and are its main source of funding. These contributions grew 3.15% last year on the back of a better job market, yet the revenues are still falling short of the system’s pension payments, which grew at a rate of 5.87%.

Distressed Funds Find Treasure in China's Mounting Bad Debts

Non-performing loans at the country’s lenders have doubled to 1.5 trillion yuan ($218 billion) in two years through 2016. ShoreVest estimates the country to have about $3 trillion in distressed debt including account receivables, with the volume still growing.

Household Debt Near Recession Levels, But This Time’s Different

Consequently, total household debt climbed to $12.58 trillion at the end of 2016, reflecting a $266 billion increase from the third quarter and $466 billion compared to a year earlier. This share of indebtedness has flirted with levels not seen since the financial crisis, when total liabilities peaked at $12.68 trillion.

N.J. credit rating cut for 11th time under Christie

The state recently calculated the pension funds' unfunded liabilities at $49.1 billion, but under a more stringent set of accounting standards accepted as the industry norm, the unfunded liabilities exceed $100 billion.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/27/17

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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Chicago's rating at risk without pension funding plan -S&P

Le Pen victory could be five times as dangerous as Greece's financial meltdown: UBS

CNBC - ‎Mar 28, 2017‎
Europe could be on track to encounter a shock wave up to five times as turbulent as the start of the euro zone debt crisis if French presidential candidate Marine Le Pen was able to secure victory in May, according to a team of UBS analysts ...

'Deep Subprime' Auto Loans Are Surging

Bloomberg-18 hours ago
Investors, starved for returns with about $8 trillion of debt globally carrying negative yields, have in turn proven to be insatiable, further facilitating higher levels of ...

The scary statistic that shows why Trump needs to fix Social Security ...

CNBC-21 hours ago
Social Security paid out $905 billion last year, almost one quarter of the U.S. ... Last year the deficit covered by interest on the Trust Fund was almost $75 billion, ...

Unbalanced Budget Response Act would allow Rauner to make cuts ...

Illinois Policy-10 hours ago

State and local government retirement debt now totals $267 billion, or $56,000 ... Illinois has the worst credit rating in the nation, and was downgraded by Fitch ..

Close to Home: Huge pension cost increases loom ahead for ...

Santa Rosa Press Democrat-5 hours ago
There are two components to pension costs: the normal cost, which is shared with the employees, and the unfunded actuarial liability cost, which is picked up by ...

Chicago's rating at risk without pension funding plan -S&P

Reuters-20 hours ago
Credit ratings for the nation's third-largest city have been weakening due largely to an unfunded pension liability that stood at $33.8 billion at the end of fiscal ...

Farmers Still Face Problems Reining in Premium Costs

KTIC-22 hours ago
A survey by NFIB in 2016 showed the cost of health insurance was the biggest issue listed by its members nationally. Health care ranked as the highest issue in ...


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Posts: 4240
Margin Debt Hit All-Time High in February

Debt and deficits are going to explode in the next 30 years, CBO says

CNBC-4 minutes ago
The total current debt held by the public of $14.3 trillion is 77 percent of GDP. The current total debt level of $18.8 trillion is about 101 percent of GDP (the CBO ...

Chuck Reed: Retirees in LA feel the sting of unfunded pensions

East Bay Times - ‎19 hours ago‎
State and local pensions across the U.S. are estimated to be $5 trillion in debt. CalPERS' pension debt increased by $170 billion since 1999. This massive growth in pension debt puts public employees and retirees at risk when cities run low on money.

Nigeria's State Govt debts hits N3.3trn in 2016 – NEITI

Naija247news-21 hours ago
Nigeria's State Govt debts hits N3.3trn in 2016 – NEITI ... have the least debt burden of N11.74 billion and N20.60 billion respectively as at the end of 2016.

Nationwide blackout looms as Egbin plans shutdown over N110bn debt

Nigeria Today - ‎11 hours ago‎
Nigerians may witness total blackout by next week as the biggest power station, Egbin Power Plc, has announced plans to shut its operation over rising debts totalling about N110 billion owed by the Nigerian Bulk Electricity Trader (NBET). Managing ...

Money borrowed to buy stocks hits record

USA TODAY-3 hours ago

The latest data from the New York Stock Exchange show margin debt, or cash borrowed to buy shares, hit a record $528.2 billion in February, up from its prior .

Margin Debt Hit All-Time High in February

Wall Street Journal (subscription) - ‎16 hours ago‎

The amount investors borrowed against their brokerage accounts climbed to $528.2 billion in February, according to the most recent data available from the New York Stock Exchange, released Wednesday. That is up 2.9% from $513.3 billion in January, ..

Puerto Rico bond hits all-time low in light trading

Nasdaq-20 hours ago
Defaulted debt trades more like an equity and is not typically quoted with a yield. The U.S. territory is facing an economic crisis marked by $70 billion in debt, ...

Debt-binge Britons stick £20million a day on credit cards

Daily Mail-13 hours ago
Credit card debt is rising at the fastest rate for 11 years amid a dangerous ... British families now owe a record £67.3billion on their credit cards – around £2,500 ...

California isn't waiting on Trump — Gov. Brown wants $5.2 billion a ...

Los Angeles Times-14 hours ago
As a result, the state faces a $130-billion backlog of repairs to state highways ... is a pay-as-you-go proposal that would not burden future generations with debt.

Ford Seeks to Curb Long Car Loans as Canadian Debt Pile Mounts

Bloomberg-3 hours ago

About 85 percent of them are bought with debt, according to DesRosiers ... Canadian banks issued a record C$7.2 billion of auto loan-backed securities and ..

Interest-only fuelled house price speculation a growing worry, warns ...

The Australian Financial Review-8 hours ago
... tallied around $88.7 billion but by 2015 it had grown to around $155 billion. ... by greed, envy or excessive debt, will not create a good outcome for Australia.".

Problem of bad loans: Banks need Rs 6.50 lakh crore to tackle stressed assets, says Kotak

The Indian Express - ‎18 hours ago‎
Saddled with stressed assets of Rs 14 lakh crore, Indian banks may need Rs 6,50,000 crore — or $100 billion — to resolve the problem of bad loans and capitalise banks, a top banker has said. Proposing two or three bad banks to tackle the worsening ...

Large deficit the talk of Trudeau government budget

Humboldt Journal-14 hours ago
“That debt that we're accumulating at a record pace has to be repaid and I think ... However, it is $21.9 billion over 11 years, which Lukiwski sees as a problem.

Maine's Largest Hospital System Braces For Credit Rating Downgrade

MainePublic.org-3 hours ago
Moody's consideration of a downgrade from Baa3 to Ba1, which would affect $393 million of the system's outstanding debt, was triggered by EMHS falling short ...


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