Daily Digest

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Daily Digest 5/24 - CA Single Payer Proposal Could Run $400B, LA Budget "A Train Wreck"

Wednesday, May 24, 2017, 11:41 AM

Economy

Tab For Single-Payer Proposal In California Could Run $400 Billion

State Sen. Ricardo Lara (D-Bell Gardens), a chief sponsor of the legislation, said the present system is unsustainable because health spending continues to grow faster than the overall economy, making coverage unaffordable for too many people.

Lawmaker says Chavez's childhood home set aflame (Venezuela)

Pedro Luis Castillo says the home of Venezuela's late president was set ablaze in the state of Barinas Monday afternoon. Several other government buildings including the regional office of the National Electoral Council were also seen in flames.

LA’s Budget: A Train Wreck

Over the next four years, the budget gap is projected to around $300 million. But when you add the real cost of pensions, the impact of new labor contracts, and the necessary funds to repair our streets and the rest of our deteriorating infrastructure, the cumulative four year budget gap soars to $3.4 billion, an average of $850 million a year.

Chicago school board to consider up to $500 million more long-term borrowing

Chicago Public Schools said on Monday it plans to add up to $500 million in debt to its load of long-term obligations, an announcement that comes just days after Mayor Rahm Emanuel said the district would use a short-term loan to settle bills, including a massive pension contribution.

Puerto Rico pension, highway agency join government in bankruptcy

The island has $70 billion in public debt, a 45 percent poverty rate and unemployment more than twice the U.S. average.
Its pensions owe another $50 billion to retirees who may face benefit cuts as part of Puerto Rico's restructuring.

Kentucky Needs $700 Million More Per Year for Pension Debt

Last week, the governing board of the Kentucky Retirement Systems lowered long-held investment assumptions, which added an extra $2 billion to the state's debt.
Overall, the state's unfunded liability is more than $30 billion.

Top credit agency fears Sydney is a bubble that could burst

Sydney’s median house price has reached $1 million, but one of the world’s leading credit agencies, Standard and Poor’s believes the market is about to peak meaning the housing bubble could potentially burst.

The day China’s version of the Lehman crisis explodes

After the economy started showing signs of a slowdown in 2014, the government took every conceivable step to revitalize the real estate market by easing housing loan regulations. As a result, housing prices in major cities have shot up — by 78 percent in Beijing and 50 percent in Shanghai compared with 2010 levels. Household debt meanwhile kept expanding to account for more than 30 percent of fresh lending in the latter half of last year, up sharply from around 15 percent previously.

Canada Must Deflate Its Housing Bubble

In the Toronto area, for example, they were up 32 percent from a year earlier in April. David Rosenberg, an economist at Canadian investment firm Gluskin Sheff, notes that it would take a decline of more than 40 percent to restore the historical relationship between prices and household income.

Gold & Silver

Click to read the PM Daily Market Commentary: 5/23/16

Provided daily by the Peak Prosperity Gold & Silver Group

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2 Comments

ezlxq1949's picture
ezlxq1949
Status: Silver Member (Offline)
Joined: Apr 29 2009
Posts: 174
Why does anyone heed ratings agencies?

As I understand it, some rating agencies were selling favourable ratings during the global financial crisis. Are they still doing so? When are their ratings reliable, and when not?

That said, warnings about Australia's mortgage bubble seem appropriate. A variety of local sources have been coming to their own alarmed conclusions for a while now — do we need the foreign players to chime in?

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 731
the CA healthcare article

The Kaiser foundation allegedly split off from the family Managed Care business in the 80's but still....seems suspicious to me. Kaiser Permanente was a leader in managed care in CA in the 80's. 

"A single-payer system likely “would be more efficient in delivering health care,” said Larry Levitt, a senior vice president at the Kaiser Family Foundation."

 

 

 

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