Daily Digest

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Daily Digest 6/17 - Corporate Debt Sales Soar, Many Americans Can't Afford To Rent

Wednesday, June 17, 2015, 9:25 AM


Many low-income Americans can’t even afford to rent

There were only 28 adequate and available to rent homes for every 100 extremely low-income renters in 2013, down from 37 in 2000, according to the Urban Institute, a nonprofit and nonpartisan organization that focuses on social and economic policy. “This gap between supply and demand leaves 72% of the country’s poorest families burdened by the high cost of housing,” it found.

Recession’s Legacy Leaves U.S. State Bonds Muni-Market Laggards

Six years after the recession, U.S. state budgets have yet to fully recover, reserves are shrinking and more than a dozen governors want to raise taxes.

N.J. teachers protest pension payments with county-wide 'blackout'

The numbers — 20, 260, 552, 780 — represent payments into retirement accounts made throughout their employment, and protests stem from the fact that these payments continue without the ability to opt out while the Teachers Pension and Annuity Fund is slated to run out of money in 2027.

Colleges hit with credit downgrades over N.J. financial problems

In April, Moody's separately downgraded New Jersey's own debt rating—the ninth ratings cut since Gov. Chris Christie took office—amid the state's underfunded pension system and concerns over the state's worsening financial condition it said was likely to drive further downgrades.

Real Cost of Chinese Stocks Dwarfs 2007 Bubble

Use average or median multiples instead and a different picture emerges: Chinese shares are almost twice as expensive as they were when the Shanghai Composite peaked in October 2007 and more than three times pricier than any of the world’s top 10 markets.

Greece accuses Europe of plotting regime change as creditors draw up ultimatum

Greek premier Alexis Tsipras has accused Europe’s creditor powers of trying to subvert Greece’s elected government after five years of “pillaging”, warning in solemn terms that his country will defend its sovereign dignity whatever the consequences.

Mountain of US debt never stops growing

The United States has been literally drowning in debt. The state of affairs in the US economy leaves much to be desired. Since 2000, consumer credit has doubled; the student loan debt has doubled too during the past decade. The federal government debt has doubled since 2007, Pravda.Ru reports. America holds the largest mountain of debt the world has ever seen, but it does not appear that the US is concerned about it. Quite on the contrary, the United States is not doing anything to make this mountain smaller.

Corporate debt sales soar amid low rates (Korea)

When including corporate stock issuances, companies were tallied to have raised 7.1 trillion won through direct financing in the January-May period, bigger than the 6.4 trillion won logged in the entire January-December period last year.

What changes to Obamacare could mean for small-business taxes

The penalty for running afoul of the market reform restrictions is $100 per-employee per-day, which can amount to $36,500 per employee over the course of a full year. Yikes. According to the IRS, the penalty can be assessed on employers for simply offering plans that reimburse employees for premiums paid by them for individual health insurance policies.

Puerto Rico development bank liquidity down to $777.9 mln

The sharp drop in liquidity comes ahead of a bond payment of $655 million that Puerto Rico - struggling with $72 billion in debt - must make on its general obligation bonds on July 1. The GDB is Puerto Rico's financing arm.

Contagion from Greek crisis engulfs euro zone bonds

Italian, Spanish and Portuguese bond yields leapt on Tuesday in one of the most serious episodes of contagion since the height of Europe's debt crisis after the latest breakdown in talks between Greece and its creditors.

Liquid treasure: Water theft rising in drought-ravaged California

It’s not quite “Mad Max,” but Californians are resorting to water theft and police are playing catchup, as nearly half of the state suffers in the throes of an intense drought.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/16/15

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."


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Greece's Odious Debt

Hellenic Parliament’s Debt Truth Committee Preliminary Findings - Executive Summary of the Report

"The research of the Committee presented in this preliminary report sheds light on the fact that the entire adjustment programme, to which Greece has been subjugated, was and remains a politically orientated programme. The technical exercise surrounding macroeconomic variables and debt projections, figures directly relating to people’s lives and livelihoods, has enabled discussions around the debt to remain at a technical level mainly revolving around the argument that the policies imposed on Greece will improve its capacity to pay the debt back. The facts presented in this report challenge this argument.

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious."

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A number of headlines on the CBO report

Government debt threatens to send U.S. economy into death spiral, CBO warns

Washington Times - ‎22 hours ago‎
Rising federal debt threatens to choke economic growth within a decade, beginning a death spiral that will sap revenue from government programs even as demands grow, forcing the government to borrow even more, Congress' budget watchdog said in a ...

As the Ratio of Retirees to Workers Narrows, National Debt Will Skyrocket

Daily Signal - ‎9 hours ago‎
The Congressional Budget Office released its 2015 Long-Term Budget Outlook, projecting U.S. spending, taxes, deficits and the debt for the next 25 years. The CBO report stressed that the “long-term outlook for the federal budget has worsened dramatically ...


Washington Times - ‎Jun 16, 2015‎
President Barack Obama is congratulated by Franklin E. Kameny, right, after delivering brief remarks and signing a Presidential Memorandum regarding federal benefits and non-discrimination during a ceremony in the White House Oval Office, Wednesday, ...

Brat says entitlement and debt payments will consume all taxes in 2032

PolitiFact - ‎Jun 16, 2015‎
"In just 17 years, spending for Social Security, federal health care and interest on the debt will exceed ALL tax revenue!" Brat, R-7th, wrote in a May 29 Facebook post. That would mean no money for defense or domestic programs unless Uncle Sam wanted to ...

CBO: Social Security Trust Fund Gone In 2029

Investor's Business Daily - ‎Jun 16, 2015‎
The government will spend far more in 2030 on servicing the rising public debt (3.5% of GDP) than on national defense (2.6%), CBO estimates show. The problem is that entitlement spending will grow faster than the economy and tax revenue, fueled by an ...

CBO: Long-Term 10-Year Interest Rate Forecasts Revised Down to 2.3%

Wall Street Journal - ‎Jun 16, 2015‎
Expectations in financial markets of lower interest rates prompted the Congressional Budget Office to drop its forecast for long-term rates for the second straight year on Tuesday, slightly trimming the projected growth in the federal debt. The estimates ...

The one chart that scares deficit hawks the most

MarketWatch - ‎Jun 16, 2015‎
That said, as Americans live longer, they are able to work longer — the CBO says by an additional three months for every extra year on the planet. The CBO projects the deficit to be 7% of the economy and the federal debt to be 107% of the economy by 2040, ...


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