Daily Digest

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Daily Digest 12/2 - What To Know About Oregon's Pension Problem, America's Poor Still Heavily In Debt

Wednesday, December 2, 2015, 9:46 AM

Economy

GLOBAL ECONOMY-Asia's factories still struggling as U.S. rate hike looms

"Asia's economy looks decidedly wobbly going into year-end. Exports continue to struggle amid sluggish demand in the West and other emerging markets," said HSBC economist Frederic Neumann.

China's economic woes continue as manufacturing enters recession

The latest snapshot showed manufacturing activity slipping for the fourth month in a row, falling further below the 50 no-change mark to 49.6 in November from 49.8 the previous month.

Indonesia's tax chief resigns after failing to achieve revenue target: Media

Southeast Asia's largest economy is facing a potential budget crisis as its deficit drifts towards its legal limit with government revenue failing to meet expectations.

PERS: Five things to know about Oregon's pension problem

Oregon's public pension funding problem is back with a vengeance. The state's public pension deficit doubled this year, and public employers – as well as taxpayers – will see the bill come due starting in 2017.

More Michigan schools may face higher borrowing costs

Additionally, the report noted that districts are paying a higher percentage of their budgets to the Michigan Public School Employees Retirement System (MPSERS). It said from 2007 through Sept. 30, 2013, the reported funded status of the MPSERS plan declined from 88.7% to 59.6%. Meanwhile, the unfunded liability rose from $5.8 billion to $25.8 billion.

Plunging oil, potash prices pushing Saskatchewan deficit to $262M

Q: How does a resource-rich province, like Saskatchewan, go from a projected $107-million surplus in March to a $262-million deficit nine months later? A: When your resource revenues decline by nearly $400 million.

Canada's Budget Deficit To Be Billions Bigger Than 'Optimistic' Liberal Forecasts: PBO

Parliamentary budget officer Jean-Denis Frechette projects a 2016-17 deficit that's $900 million smaller than Ottawa's forecast, but shortfalls between 2017-18 and 2020-21 that are $2.3 billion, $3.6 billion, $6.3 billion and $10.8 billion higher than current projections.

U.S. oil companies' restructuring plans founder as prices plunge

American Eagle Energy, which explores for energy in North Dakota, issued $175 million in bonds in August 2014. The company filed for bankruptcy in May, estimating its assets were worth $211 million. It sold them in October for under $37 million.

Spain's Renewable Energy Powerhouse Abengoa Teeters Toward Bankruptcy

The U.S. Department of Energy provided a federal loan guarantee of $1.45 billion for Abengoa’s 280 megawatt (MW) Solana project in Arizona, the largest parabolic trough plant in the world.

UK households owe record £2.1bn in water bills

More than 2.5 million customers struggling to pay water and sewerage bills with single people hit hardest, says regulator

Global defaults climb to six-year peak of $78b so far this year

Without a rebound in oil and commodity prices, and the Federal Reserve seen lifting its policy rate higher for the first time in nine years, strategists predict a further rise in corporate defaults for 2016.

Japan pension whale stands by stocks after $64 billion loss

The loss will test the resolve of the fund's stewards and of Prime Minister Shinzo Abe, who called for the shift out of bonds to riskier assets such as equities as the government tries to spur inflation.

U.S. Junk Bonds See Highest Distressed Ratio Since '09, S&P Says

Plummeting oil and gas prices pushed the percentage of junk bonds trading at distressed levels to the highest since the markets were recovering from the financial crisis, according to Standard & Poor’s.

America's poor are still heavily in debt

About 1 in 5 American families who make $41,200 or less have what's considered a hefty debt burden -- defined as more than 40% debt-to-income load.

Sen Blumenthal: Puerto Rico 'narrowly avoided a complete default' on debt

Even though Puerto Rico averted a default on Tuesday, it still faces about $1 billion due on Jan. 1, when multiple bonds — including more than $300 million on general obligation debt, with payments constitutionally backed by Puerto Rico — come due.

European Central Bank May Surprise With Size of New Stimulus

Christmas is coming — and some investors are already convinced they will unwrap an early present Thursday in the form of more economic stimulus from the European Central Bank.

Swiss economy grinds to standstill in third quarter

Switzerland’s economy ground to a halt in the third quarter of this year, according to figures released from Bern on Tuesday.

ECB to Test the Limits of Its Bond-Buying Program

Some €618.5 billion of eurozone bonds currently yield less than minus 0.2%, according to Rabobank. That is just over 12% of the more than €5 trillion of bonds potentially available for purchase under the quantitative easing program.

Manufacturers suffer worst performance since 2009, ISM finds

American manufacturers of goods such as electronics, chemicals and heavy machinery saw their businesses contract in November at the sharpest pace since the end of the Great Recession, reflecting the damage caused by a strong dollar, cheap energy prices and a soft global economy.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/1/15

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
Fitch: Rising Sovereign Risk from Private Sector Debt in EM

Fitch: Rising Sovereign Risk from Private Sector Debt in EM

Reuters - ‎4 hours ago‎
(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Rising Private Sector Debt: Risks to EM Sovereigns here LONDON, December 02 (Fitch) Fitch Ratings says in a new report that private sector debt has risen rapidly ...
 

Goldman warns of Brazil depression after GDP plunges again

Chicago Tribune-21 hours ago
As the budget deficit has swelled, boosting threats of further sovereign ... Brazil had its sovereign debt rating cut at all three major ratings companies during the ...

Central banks battle rising currencies as euro weakens

Financial Times-4 hours ago
For a select group of central bank governors, the year is threatening to end as it began — fending off unwelcome currency appreciation as the European Central ...
 

Euro-Area Note Yields Slip to Record Lows Before ECB Decision

Bloomberg - ‎5 hours ago‎
Economists surveyed by Bloomberg unanimously predict the ECB will expand or lengthen its monetary easing this week, less than halfway through a 1.1 trillion-euro ($1.2 trillion) bond-buying program. Most forecast that officials will take multiple ...
 

Illinois budget talks restart with no hint of compromise

Reuters - ‎15 hours ago‎
Illinois House Speaker Michael Madigan, Rauner's main Democratic nemesis, insisted none of the governor's demands address the state's budget deficit. Illinois has a $7 billion backlog of unpaid bills and an unfunded pension liability exceeding $100 ...

Gallup poll: Nearly 1 in 3 still delay medical care because of costs

Becker's Hospital Review - ‎18 hours ago‎
Since 2001, at least 19 percent of Americans — and closer to a third beginning in 2006 — said the cost of some healthcare services are so high that they or a family member has had to put off a medical procedure to avoid the cost, according to the report.

IPERS still faces $5 billion shortfall

DesMoinesRegister.com-19 hours ago
Moody's Investors Service reported last month that Chicago's unfunded pension liabilities will continue to grow for at least another decade, even after Mayor ...

 

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Racing Extinction Documentary.

Racing Extinction documentary will air at 9:00 p.m. EST tonight on the Discovery Channel.

 

 

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1220
ruminant apologia

http://www.treehugger.com/green-food/in-defense-of-the-cow-how-eating-me...

old read but worth considering the beef

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 633
ruminant advocate

Know you would appreciate this:

https://vimeo.com/80518559

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1220
Uncle Tom

Much thanks for the link. I know that Bos Taurus lives. CO2 has been sequestered by myriad means. .99$/lb ground beeves is a mirage and those who consider that a "deal" are... 

Our mare is settled, will keep the PP community up to date on her gestational health.

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