Daily Digest

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Daily Digest 3/7 - Libor Exposures Larger Than Thought At $200T, What’s Driving Oil Prices Back Up?

Wednesday, March 7, 2018, 11:51 AM

Economy

Report: Minnesota’s financial health 'drastically worse' than prior years

A recently released TIA report states that Minnesota’s financial condition is “drastically worse” than previous years because its state officials created a “staggering debt burden” of $17.6 billion. Based on TIA’s analysis of the state’s most recent financial filings, Minnesota has $19.4 billion in assets and $37 billion in bills. In order to pay off its debt, each taxpayer would have to pay $8,800.

40% of student loans could default over 20 years

According to Student Loan Hero, the total student loan debt has reached $1.48 trillion spread across 44.2 million Americans, and the latest release from the U.S. Department of Education in September of 2017 shows that default rates are climbing. According to the Education Department, the three-year cohort default rate for 2014 rose to 11.5% for federal student loans, up from 11.3% from the previous year

Why Italy won't get the universal income it was promised

The populist party that scooped up the most votes in Italy's election made a bold campaign promise: a guaranteed income of €780 ($960) a month for everyone.

These are the 25 cities where people have the most credit card debt

3. New York City

The Big Apple has among the highest cost of living, so it’s not surprising it made the list of cities with the most credit card debt. The price for a one-bedroom apartment in Manhattan is more than $3,700 a month. Credit card debt averages $7,145 and the median income is low compared with the cost of living, at $38,951.

U.S. Libor exposures larger than thought at $200 trillion: ARRC

The Alternative Reference Rates Committee (ARRC) said that around $200 trillion in U.S. dollar-based derivatives and loans are based on Libor, with derivatives accounting for around 95 percent of the exposures.

Rising interest rates will be devastating to the US economy for one big reason

Let's engage in some grammar school math. Take the CBO estimate of debt held by the public of $16.5 trillion in 2020. A 5 percent average interest rate on that amount comes to annual debt service of $825 billion, an unfathomable amount. (In 2017, interest on the debt held by the public was $458.5 billion, itself a scary number.)

BOJ's Kuroda says no plan now to abandon negative rates (Japan)

“We may adjust interest rates in the future depending on price developments. But I don’t have any plan now to raise short-term rates from the current minus 0.1 percent or abandon negative rates,” Kuroda told an upper house confirmation hearing.

U.S. oil production, led by the vast Permian Basin, is expected to supply the world (Uncletommy)

The IEA predicts that within five years, the cushion of production capacity over expected demand will fall to its lowest level since 2007. That was the year before the price for oil in the U.S. surged close to $150. Prices are less than half that today.

What’s Driving Oil Prices Back Up? (Michael S.)

OPEC appeals to shale producers in Houston. OPEC officials, along with energy executives and oil analysts, gathered in Houston on Monday for the annual CERAWeek Conference. On Monday, several OPEC officials downplayed what is often billed as a rivalry with U.S. shale. OPEC Secretary-General Mohammed Barkindo said there is a “common understanding” between the two sides and that “we all belong to this industry.” OPEC officials had dinner with top shale executives on Monday in an effort to increase dialogue. However, Nigeria’s oil minister was a little less diplomatic than Barkindo, arguing that shale companies need to share the burden with OPEC. “We need to begin to look at companies that are very active in these areas and begin to get them to take some responsibilities in terms of stability of oil prices,” Nigerian Oil Minister Emmanuel Ibe Kachikwu told Reuters.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/6/18

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."

6 Comments

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5719
Drunk driver hits himself

Some things make me laugh out loud, this was one:

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1597
He who laughs last, laughs best

In Philadelphia, that DUI driver would sue the City because the police officer put him in danger, and he'd win a $50,000 judgment (because the City would settle rather than spend money on legal fees to fight it).  I'm. Not. Kidding.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5719
The best line....
thc0655 wrote:

In Philadelphia, that DUI driver would sue the City because the police officer put him in danger, and he'd win a $50,000 judgment (because the City would settle rather than spend money on legal fees to fight it).  I'm. Not. Kidding.

Thc055,

the best line was on Reddit in the comments:

cop catches up to him

"Well at first you just had a DUI, but now I got you for hitting a pedestrian and leaving the scene of an accident. You just don't know when to quit, do you..."

;)

pat the rat's picture
pat the rat
Status: Silver Member (Offline)
Joined: Nov 1 2011
Posts: 113
Hit and run

I am not sure he can be charge with hitting himself, he would sue himself?Think about it pat the rat sues pat the rat.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4134
Nice time to post a Terminator 3 clip

RISE OF THE MACHINES: Alexa emitting terrifying laughter at ...

Express.co.uk-12 hours ago
Creeped out users have gone as far as to say it is “bone chillingly creepy” and joking that Alexa is going to take over the world. One user said their Alexa let out a “witch-like” laugh when they asked it to turn off their alarm one morning. Users have taken to social media to voice their concerns about the machine. One person ...
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4134
Cincinnati now pays $50M in interest on its debt. Is that a prob

Cincinnati now pays $50M in interest on its debt. Is that a problem ...

Cincinnati.com-12 hours ago
Cincinnati currently owes different debtors more than $1.25 billion. That's just under 10 percent of what the city is worth as a whole ($15 billion in property). The debt is triple what it was 25 years ago when adjusted for inflation, with big-ticket items such as the streetcar and adding more police following the 2001 racial unrest.

 

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