Daily Digest

Image by mabho, Flickr Creative Commons

Daily Digest 5/3 - Greece Agrees To Bailout Reforms, A Higher Calling for Higher Education

Wednesday, May 3, 2017, 9:10 AM


Senate passes Houston pension fix

Houston has one of the highest pension obligations relative to revenue in the nation and currently faces about $7.8 billion in unfunded liabilities. As these liabilities continue to grow, bill author and Houston Sen. Joan Huffman said the system must be fixed if the pension funds are going to last. "The current situation is straining the city's finances and putting the city at risk of not reaching its pension obligations in the future," she said. Her bill, SB 2190, aims to head off potential bankruptcy of the city's three main pension funds.

Michigan Business Leaders Propose Pension Overhaul

The report said Michigan’s pension funds’ unfunded liabilities were a major reason for the need to revamp the state’s pension system. It cited the Michigan Public School Employees Retirement System (MPSERS) and the state’s Municipal Employees’ Retirement System (MERS) as having unfunded liabilities of $25 billion and $3.6 billion, respectively.

LA Times to LA City Hall: GET REAL

The City is also underfunding its two pension plans as it is relying on an overly optimistic investment rate assumption of 7.5%, rather than 6.5% as recommended by knowledgeable investors, including Warren Buffett of Berkshire Hathaway fame and fortune. But if the City used the more realistic rate of 6.5%, the City’s annual required contribution would increase by an estimated $400 million.

Illinois' medical debt spiral injures people, economy

Right now, Illinois owes a whopping $2.5 billion in medical bills to the state's hospitals and managed care providers that help fund locally based clinics, mental health groups and home care providers, according to the state comptroller's office. In addition, Illinois is liable for a projected $4.6 billion in group medical insurance claims for state workers, retirees and their dependents, state data show.

Greece agrees deal with creditors on bailout reforms

Differences over the size of cuts to be applied in 2019, on pensions already reduced by more than 40 per cent since 2011, held up an agreement, according to people involved in the negotiations. The further pension reduction was agreed at 18 per cent.

A Higher Calling for Higher Education (drbost)

Universities play a key part in shaping civilization and thus bear a significant intergenerational responsibility. They are responsible for providing students with a knowledge of the past while preparing them to be critical, open-minded, and creative contributors to contemporary society. The higher purpose of higher education is to go beyond helping students to develop the skills necessary to earn a livelihood, to facilitating ethical awareness, fostering critically engaged citizens, and imbuing all professions with a sense of the common good. As Sjur Bergan has eloquently explained, we need a higher education that “educates for the kind of society in which we would wish to live, not just for the kind of economy we would like to have.”

U.S. Auto Sales Plunge Dramatically As The Consumer Debt Bubble Continues To Collapse (Aaron M.)

One analyst that has been waiting for auto sales to start declining is Graham Summers. According to Summers, the boom in auto sales that we witnessed in previous years was largely fueled by subprime lending, and now that subprime auto loan bubble is starting to burst...

16 Health Benefits of Honey, According to Science (Jacky M.)

Considering honey is the bees’ main food supply, it makes sense that it would be highly nutritious. It doesn’t contain a whole lot of vitamins and minerals, per se, but honey’s certainly got a lot of antioxidants. Here’s a look at its nutritional profile in terms of vitamins and minerals, per ounce.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/2/17

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."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Fannie Mae just made it easier for those with student loans to b

Fannie Mae just made it easier for those with student loans to buy a ...

Chicago Tribune-May 2, 2017
Roughly 43 million Americans are carrying student debt — $1.4 trillion ... loans or making full payments, they could end up in default on their home mortgages.

US Treasury 'studying' ultra-long bonds; urges Congress to lift debt ...

Financial Times-1 hour ago
US Treasury 'studying' ultra-long bonds; urges Congress to lift debt ceiling ... the allure of the Treasury market, the biggest sovereign debt market in the world.

South African Central Bank Sees High Risk of More Downgrades

Bloomberg-22 hours ago

South Africa faces a high risk and probability of further downgrades to its credit ratings, which may weaken the currency and lead to higher borrowing costs, the

ECB steps up bond buying in France and Italy before key votes

Reuters-22 hours ago

... some to speculate the ECB was having trouble finding eligible German debt to buy. ... The ECB's 2.3 trillion-euro ($2.51 trillion) bond-buying scheme has been ..

Pennsylvania sees biggest budget shortfall since recession

Observer-Reporter - ‎13 hours ago‎
In January, the Legislature's nonpartisan Independent Fiscal Office projected a shortfall of nearly $3 billion for the two fiscal years ending June 30, 2018, including the cost to maintain the state's current programs. April's results would push that ...

Connecticut budget deficit grows as income tax receipts plummet

New Haven Register - ‎21 hours ago‎
HARTFORD >> Connecticut's income tax collections plummeted at the end of April leaving Connecticut with a gaping $5.2 billion hole in its budget for this year and the next two fiscal years. Revenues are down about $413 million this fiscal year, and ...

California public pension shortfall one of nation's largest

Sacramento Bee (blog)-14 hours ago
Nevertheless, pension systems have seen their “unfunded liabilities” continue to increase – giving California one of the nation's widest gaps between earning ...

A new wrinkle in LA's pension woes

89.3 KPCC-1 hour ago
Costs have approximately doubled over the past decade as a wave of baby boomers retired and are now living longer on the generous pensions they were ...


sand_puppy's picture
Status: Diamond Member (Online)
Joined: Apr 13 2011
Posts: 2034
Kyle Bass Warns on China

Kyle Bass:  "All hell is about to break loose in China."

China's credit system expanded "too recklessly and too quickly," and "it's beginning to unravel," warns Hayman Capital's Kyle Bass.

Crucially, Bass notes that ballooning assets in Chinese wealth management products are another sign of a looming credit crisis in the nation.

"Some of the longer-term assets aren't doing very well," Bass said on Bloomberg TV from the annual Milken Institute Global Conference in Beverly Hills, California. "As soon as liabilities have problems - meaning the depositors decide to not roll their holdings - all hell breaks loose."

The wealth management products, or WMPs, have swelled to $4 trillion in assets in the last few years, he said., on a $34 trillion banking system...

"think about this - in the US, our asset-liability mismatch at the peak of our subprime greatness was around 2%! ... China's mismatch is more than 10% of the system."


Chinese Commodities Crash Limit-Down

It seems Kyle Bass' warning was extremely timely. The deleveraging of China's $4 trillion shadow banking system just accelerated massively as Bank Wealth Product Issuance crashes 15% month-over-month. With stocks and bonds already plunging, commodities joined the ugliness tonight with Dalian Iron Ore limit down (8%) at the open (not helped by tumbling auto demand).

davefairtex's picture
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5686
copper crushed

To support that iron ore event - copper was crushed today.  It was a massive 4% drop that wiped out 9 days of rally in one relentless selling day.  It started in asia and didn't stop until the US market closed.

Something sure does seem to be up - but it hasn't made a dent in US equities.  Yet.

Last time China got sick, the US market did not have a happy experience.


Uncletommy's picture
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 633
Fannie Mae, did WHAT?

I can't F'n believe it. New and novel ways to incur debt. Common sense and reality are really becoming blurred. Wake up children. . . they're coming after you. The Zombie bankers will be coming out of the graves to devour you and your ability to pay.

thc0655's picture
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1712
Two controversial police shootings resolved

Fired officer Michael Slager pleads guilty to unjustifiably shooting Walter Scott in North Charleston, SC.


Two Baton Rouge, LA officers cleared of Federal charges in the shooting of Alton Sterling.


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Global recession risk rises as the US and China tighten into the

Global recession risk rises as the US and China tighten into the storm

Telegraph.co.uk-17 hours ago
Global recession risk rises as the US and China tighten into the storm ... Yields on 10-year US Treasuries have fallen by 33 basis points to 2.29pc since early ...

French central bank chief warns against parallel currencies

Reuters-2 hours ago
Speaking at a monetary policy conference at the Bank of France, he added that the European Central Bank (ECB) had not modified its sovereign debt purchase ...

Puerto Rico files for biggest ever US local government bankruptcy

Reuters-17 hours ago

While it was not immediately clear just how much of Puerto Rico's $70 billion of debt would be included in the bankruptcy filing, the case is sure to dwarf Detroit's ..

Portugal's public debt reaches 243.5 billion euros in the first quarter ...

Macauhub-3 hours ago
Portugal's public debt reached 243.5 billion euros at the end of March, having increased by 23 million euros compared to February, the Bank of Portugal said.

Nearly half of Americans don't pay their credit card bill in full

KSDK-20 hours ago
You are a predictable source of income without signs that your debt is ... which would indicate higher risk of non-payment and possibly eventual default. Credit ...

Public Employee Pension, Health Benefits Phase-Out Debated

U.S. News & World Report-18 hours ago
Unfunded retiree health coverage liabilities are estimated at $43 billion. Billions more cover the gap between pension funds now in hand and what the state is ..


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments