Daily Digest

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Daily Digest 6/20 - NM Pension Liabilities Trigger Credit Downgrade, Biggest Economies 'Not Prepared For Another Recession'

Wednesday, June 20, 2018, 10:51 AM

Economy

New Mexico pension liabilities trigger credit downgrade

It cited extremely large liabilities at two major state pension funds for public employees and teachers.
A Moody's analyst says New Mexico's pension pressures are compounded spending demands linked to the state's large enrollment in Medicaid, a lagging state economy and volatile sources of state government income. The state's financial reporting practices are unusually weak.

Budget takes aim at pension costs in Palo Alto

The budget includes a $210.7-million General Fund, which pays for most basic services not counting utilities. It also assumes that in the first six months of the fiscal year (which begins July 1), the City Council will reduce expenses by $4 million and use that money to address the city’s unfunded pension liability, which is estimated at more than $500 million.

Spanish deaths outpace births at fastest rate since records began in 1941

The total number of deaths in Spain in 2017 outpaced the number of births at the fastest pace since records began in 1941, official census data showed on Wednesday, the latest data to fuel the debate on a deep reform of the pension system.

Faced with multi-million dollar deficit, Santa Maria City Council to consider options Tuesday

“We’re almost status quo in terms of staff, but our overall costs are increasing,” van de Kamp said, adding annual pensions costs have risen by $3.4 million since the 2011-12 fiscal year. City staff estimates pension costs will continue rising about $1.2 million per year for each of the next five years.

Brazil, India corporate debt most vulnerable to rate hikes, McKinsey says

McKinsey researchers found more companies had shifted to bond market financing after the 2008 crisis, with nearly 20 percent of corporate debt now in the form of bonds — around double the levels of a decade ago.
Higher interest rates will push up refinancing costs and put more bonds at risk of default by lowering companies’ interest coverage ratio — a gauge of how easily a company can pay interest on its debt.

U.S. Utilities Cut to Negative in First as Moody's Warns of Debt

The sector's consolidated debt-to-equity ratio has hit the highest level since 2008

Britain may issue more 50-year bonds this year, debt office chief says

Governments globally have been issuing longer-dated bonds to lock in historically low borrowing costs. Investors are seeking out longer maturities for higher returns amid very low interest rates.

Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt

"We need all the help we can get in the search for buyers of US Treasuries due to the enormous supply coming our way in the next few years," Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note. "Our stance on trade with our trading partners could very well play into this in coming months and quarters, especially with China, the largest owner of US Treasuries."

Summers Warns the Biggest Economies Are Not Prepared for Another Recession

Former Treasury secretary comments at ECB Forum in Portugal
Conseqences of downturn would dwarf risk from higher inflation

ECB seeks compromise solution to banks' bad loans problem

Even after a sharp reduction in the past two years, euro zone banks are sitting on 721 billion euros ($837.01 billion) of unpaid debt, mostly inherited from the 2008-12 economic crisis and concentrated in countries such as Italy, Greece and Portugal.

Japan’s Central Bank Should Face Up to Zero-Price Growth, Ex-Official Says

Tsutomu Watanabe is a long-term advocate of inflation target
BOJ needs to change tack, using a digital currency, he says

Cook County faces $177 million in deficits over next two budget years

The other part of the gap is a $619 million increase in spending for the Cook County Health and Hospitals System for 2019. Revenues are expected to increase by $589.5 million, leaving a $29.5 million expected deficit for the 2019 fiscal year.

Tale of the box: Size matters when it comes to automation (blackeagle)

This particular warehouse handles only medium-size boxes: That means 12-by-24-inches. It’s increasingly automated but still has the most employees of any warehouse in the park that Pu manages — 500 workers split into two shifts.

As Nashville Rapidly Expands, Residents Worry the Metropolis Is Growing Too Fast (Thomas R.)

Kathleen Ervin moved here 12 years ago from the Northeast, drawn to the relaxed atmosphere, green parks and relatively low cost of living.

The Sacred Immigrant (Thomas R.)

It is tempting to blame this on the secret “donor party” that allegedly manipulates the inner party, like some sort of Turkish conspiracy. There’s no doubt that agriculture lobbies and the tech industry push hard for unlimited “guest worker” visas. No matter how many indentured servants they are granted, it is never enough. But, who is pushing for amnesty? In whose interests is it to hand a ballot to millions of foreigners? That actually hurts the cheap labor lobby, as it removes exploitable people from the labor pool.

The Really Surprising Thing People Get Wrong In Retirement — And 4 Steps To Overcome It (Thomas R.)

In fact, 71% of retirees surveyed by Ameriprise Financial said they think their money will last their lifetime. (The study surveyed 1,000 retirees with at least $100,000 in investable assets when they retired, with the median being $839,000. While the group ranged in age from 40 to 79, more than half of respondents were age 70 and older, and 38% were ages 60 to 69.)

NowUKnow: Why Millennials Refuse to Get Married (Thomas R.)

Today an unprecedented portion of millennials will remain unmarried through age 40, a recent Urban Institute report predicted. The marriage rate might drop to 70 percent -- a figure well below rates for boomers (91 percent), late boomers (87 percent) and Gen Xers (82 percent). And declines might be even sharper if marriage rates recover slowly, or not at all, from pre-recession levels, according to the report.

Google Is Training Machines to Predict When a Patient Will Die (Thomas R.)

What impressed medical experts most was Google’s ability to sift through data previously out of reach: notes buried in PDFs or scribbled on old charts. The neural net gobbled up all this unruly information then spat out predictions. And it did it far faster and more accurately than existing techniques. Google’s system even showed which records led it to conclusions.

Idaho Child Diagnosed with State's First Case of Plague in Humans Since 1992 (Thomas R.)

Additionally, the CDHD recommends keeping your pets and their food away from any potentially infected creatures, and always use appropriate flea control products to reduce their risk of infection. If you or your pet becomes ill—especially with sudden and severe fever—seek medical attention immediately.

How party dips can give you Norovirus and even herpes (and sour cream is the worst for spreading bacteria) (Thomas R.)

The experts revealed that bacteria can grow especially rapidly at parties because dips are usually left out of the fridge for a few hours.

The viruses can multiply quickly in warm conditions, making them hot beds of contamination.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/19/18

Provided daily by the Peak Prosperity Gold & Silver Group

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1 Comment

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1958
55 Gallon, Stackable Water Storage Container w Spigot

I came across these on amazon and am going to send one to my father who lives in the desert in the southwest.  (He is a "nothing will ever happen" type of risk minimizer who doesn't think storing water is important.)

55 Gallon Water Storage Container w Spigot.  Stackable.  22" (wide) x 28" (deep) x 30" (height).  Can stack two vertically.

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