Daily Digest

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Daily Digest 11/28 - Sandy 'Worse Than Katrina' In Some Ways, Youth Not Planning For Retirement

Wednesday, November 28, 2012, 11:29 AM


A look at Greece's key financial figures

Greece is in its fifth year of recession. Over the previous four, the economy contracted by 20 percent. The European Union expects the country's economy to contract 6 percent this year, to (EURO)195 billion ($250 billion), and another 4.2 percent next year.

'In some ways worse than Katrina', says NY governor Andrew Cuomo

New York's demands raise the total estimates for the storm's damage, as all of the affected East Coast states combined now require at least $71,3billion.

The total, which is substantially larger than previous estimates of $50billion and could still grow, came as Cuomo laid out his state's needs.

AP IMPACT: NYC Flood Protection Won't Be Easy

Sandy's toll is overwhelming. But finding the money and political will to build a proposed system of giant storm barriers at the mouth of New York Harbor will likely be very difficult. Even at a cost of up to $27 billion, such barriers would leave large parts of the region unprotected

Portuguese parliament passes unpopular austerity budget

Prime Minister Pedro Passos Coelho is implementing austerity measures agreed with the European Union and the International Monetary Fund, which granted Portugal rescue funding worth 78 billion euros (100 billion dollars) in 2011.
Communist representative Antonio Filipe said a "moribund government" had adopted "the worst budget in memory." Ecologist representative Heloisa Apolonia said that either the budget or the government was about to fall.
Telmo Correia from CDS, the conservative ally of Passos Coelho‘s centre-right Social Democratic Party, warned that budgetary instability could lead to Portugal having to abandon the euro.

Police fine surplus to lower city tax hike (Calgary)

Police budget surpluses courtesy of speed-on-green and red-light camera fine revenues will be folded into next year’s city budget, drawing down the 5.7 per cent tax rate increase if council doesn’t decide to spend it on other projects.
The Calgary police will earn at least $4 million more from camera fine revenue than the $38.9 million it had budgeted.

Analysis: Euro zone debt forgiveness lies ahead in Greek mire

Implicit was an understanding that Greece will undergo some form of official-sector debt restructuring - with euro zone countries forgiving a portion of Greece's debt - at some point in the future, the sort of last-ditch measure usually reserved for impoverished states in Africa and Latin America.

At a news conference in the early hours of Tuesday, German Finance Minister Wolfgang Schaeuble came closer than he has ever done before to publicly acknowledging that creditors face such an eventuality - a move that will be very hard for the likes of Germany, Finland, Austria and the Netherlands to take.

Devaluation increases Venezuela's debt burden on the economy

Pressured by the growing gap between expenditure and income, it is very likely that the Venezuelan Government devaluates the local currency (bolivar) in 2013. Such an action may increase the amount of bolivars it will receive per the so-called petrodollars, yet this may bring about negative effects on the State's accounts as the burden of the country's debt will increase.

Greece to Spend New Loans on Debt Buyback

Greece will use fresh loans for debt buyback at discounted prices, Greek Finance Minister Yannis Stournaras said on Tuesday after eurozone finance ministers and the IMF reached a deal on a much-needed bailout for the country.

French Jobless Claims Jump to 14-Year High on Stalled Economy

French jobless claims jumped to a 14-year high as a stalled economy prompted companies to trim payrolls and investment.

The number of people actively looking for work rose by 45,400, or 1.5 percent, to 3.103 million, the Labor Ministry said today in an e-mailed statement from Paris. Economists predicted an increase of 28,600, according to the median of six forecasts gathered by Bloomberg News.

Youth not planning for retirement (Canada)

Canadians' lack of preparedness for retirement seems to be a chronic condition that even is affecting the younger generation.

There have been lots of studies recently showing that Canadian boomers have not saved enough to create a sufficient income to fund the level of consumption they expect in their retirement. And with life expectancy increasing, the chance of outliving your money is increasing.

Cars Caught Speeding On Camera Now Get $189 Tickets (Seattle)

Since the cameras have been on, speeders have gotten warnings in the mail. Now the warnings go away and the tickets start.

The company that sells the camera systems and generates the tickets is headquartered in Arizona. It’s been the target of anger and lawsuits. People have complained the cameras make mistakes, and that it’s all just a way for the city and a private company to make money.

Bankia junior debt holders loss seen at 10 to 50 pct (Spain)

Junior debt holders in Spain's nationalised lender Bankia will take losses ranging from 10 to 50 percent of face value of their investments as a condition for receiving European aid, a source involved in the negotiations said on Tuesday.

"A deal has been clinched on swapping these instruments with Bankia shares and the discount applied will depend on the instruments," the source said on condition of anonymity.

ECB’s Constâncio advocates sovereignty transfer

The framework must be enforceable if it is to be "fully credible", he said, and this isn't possible while responsibility for fiscal policies is exclusively in national hands. Hence budgetary sovereignty must be further shared.

He suggested this could mean giving European institutions greater ability to oblige member states to take particular fiscal policy actions, "if and when the situation deteriorates".
This would not constitute a loss of sovereignty, but an opportunity to regain it, Constâncio insisted.

Japan's DPJ: Will Maintain Pressure on Central Bank

Japan's ruling party vowed in its election platform Tuesday to keep up pressure on the Bank of Japan to continue easing monetary policy and achieve an average nominal growth rate of 3% by fiscal 2020, but it stopped short of the main opposition party's ambitious call for a 2% inflation target.

Rice prices in Japan soar despite plentiful harvest

(page 2) A good harvest would normally bring a decline in prices. However, the situation is a bit different this year. The average trading price of 2012 rice among dealers in September was 16,650 yen per 60 kilograms of brown rice, or 308 yen per kilogram of polished rice--about 10 per cent higher than prices from September last year.

The increase in rice brands is not the only factor contributing to the hike in overall rice prices. Prices for traditionally low-priced crops are also rising. For instance, the price of Fukushima Prefecture-produced Hitomebore rose 20 per cent to 15,929 yen.

Retail beef prices jump in 2012 with supply constrained

The retail price for all fresh beef averaged a record-high $4.772/lb in October, $0.124/lb higher than in September and $0.276/lb higher than October 2011. For the year to date, all fresh retail beef averaged $0.254/lb, or 5.8%, higher than for the same period in 2011.

Portugal, Ireland to Benefit From Greek Deal, Gaspar Says

European finance ministers cut the rates on Greece’s bailout loans, suspended interest payments for a decade, gave that country more time to repay and engineered a Greek bond buyback at a meeting in Brussels that ended early today.
Portugal, which in April 2011 followed Greece and Ireland in requesting a European Union-led bailout, has already been given more time to narrow its budget shortfall after tax revenue missed forecasts and as the economy heads for a third year of contraction in 2013.

Credit-Rating Companies to Face Sovereign-Debt Curbs in EU Plan

Barnier proposed the tougher ratings rules after warnings from nations including France and Germany that downgrades of sovereign debt had deepened the bloc’s fiscal crisis. Barnier said last year that ratings companies were guilty of “serious mistakes” and shouldn’t be allowed to “increase market volatility” through ill-timed or unjustified downgrades.

National debt clock nears $52,000 in debt per citizen

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saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
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Doug's picture
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3207
debt foregiveness

Although debt foregiveness/default is a necessary part of deflating the enormous debt bubbles that hang over all of us, I wonder if, in the specific instance of Greece, that would be a 'credit event' leading to a trigger of derivatives by the ISDA with unknown consequences.



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