Daily Digest

Image by blmurch, Flickr Creative Commons

Daily Digest 2/17 - Venezuela On Collision Course For Default Crisis, School Of Debt

Wednesday, February 17, 2016, 10:22 AM

Economy

How to Cut Your Health-Care Bill: Pay Cash

When Nancy Surdoval, a retired lawyer, needed a knee X-ray last year, Boulder Community Hospital in Colorado said it would cost her $600, out of pocket, using her high-deductible insurance, or just $70 if she paid cash upfront. When she needed an MRI to investigate further, she was offered a similar choice—she could pay $1,100, out of pocket, using her insurance, or $600 if she self-paid in cash.

Venezuela on collision course for default crisis

Venezuela is rapidly heading for a showdown between its socialist government and the centre-right opposition that is likely to end up with the crisis-ridden country defaulting on its debt.

Illinois state budget crisis at a glance: Revenue down, spending up, no one in control and no end in sight

BACKDROP: Gov. Bruce Rauner delivers his 2016 Budget Address on Feb. 17. He’s in an awkward situation: The Budget Address is intended as a preview of the Illinois state budget for fiscal year 2017, which starts July 1. State government has yet to adopt a budget for FY 2016, which started last July 1.

Audit: Louisiana borrowing maneuvers increased state debt

Legislative Auditor Daryl Purpera’s office says the debt payment maneuvers used since the 2010-11 budget year helped get quick cash for the state budget but came with a price tag for Louisiana. The long-term cost to the state for the maneuvers could reach as high as $231 million, auditors estimate.

High risk of bankruptcy for one-third of oil firms: Deloitte

The roughly 175 companies at risk of bankruptcy have more than $150 billion in debt, with the slipping value of secondary stock offerings and asset sales further hindering their ability to generate cash, Deloitte said in the report, released Tuesday.

School of Debt: How to Bankrupt Public Education, Chicago-Style

The numbers tell the story. The teachers’ retirement fund is short about $9.6 billion. The school system owes more than $6 billion to its bondholders. On Wall Street, Chicago schools have the makings of following the same path as Puerto Rico, which is struggling with a $70 billion debt crisis.

Danger signs flashing for global economy, years after crisis

Eight years after the financial crisis, the world is coming to grips with an unpleasant realization: serious weaknesses still plague the global economy, and emergency help may not be on the way.

China Said to Mull Lower Minimum Bad-Loan Coverage for Banks

The highest level of soured loans in a decade has hurt bank profits and cut their bad-loan coverage ratios close to the regulatory minimum. That’s prompted lenders including Industrial & Commercial Bank of China Ltd. to urge regulators to ease the requirement, which would give banks more scope to lend and bolster an economy that grew last year at the slowest pace in a quarter century.

Philippines Cuts 2016 Growth Goal as Asia Braces for Volatility

The economy will probably expand 6.8 percent to 7.8 percent this year, compared with a previous goal of as much as 8 percent, the inter-agency Development Budget Coordination Committee said late Monday. Growth is seen at 6.6 percent to 7.6 percent in 2017, committee members said in a briefing in Manila.

Kuroda's Negative Rate Takes Effect as Economic Woes Mount

As of Tuesday, a rate of minus 0.1 percent will be applied on about 10 trillion yen of financial institutions’ reserves held at the BOJ.

China's Debt Surge Has Potential to Pressure Ratings, S&P Says

China’s debt-to-gross-domestic-product ratio climbed to 232 percent at the end of 2014, the highest since Bloomberg started compiling the data in 2004.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/16/16

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."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4061
China's $600 Billion Subprime Crisis

Spain's public debt nears 100% of GDP at end of 2015

Irish Times-1 hour ago
Spain's public debt neared 100 per cent of economic output in 2015, ... yields rose to unsustainable levels, pushing Spain close to needing a sovereign bailout.
 

Negative interest rates a 'dangerous experiment' for the world as monetary policy hits buffers

Telegraph.co.uk - ‎23 minutes ago‎
Central bank moves to impose negative interest rates are a "dangerous experiment" in global monetary policy, posing new risks to financial stability, Morgan Stanley has warned. With banking stocks around the world in turmoil, Morgan Stanley said moves ...

Japan's Overnight Rate Goes Negative for First Time Since 2004

Bloomberg-6 hours ago
While the exercise may seem academic, negative interest rates are already affecting Japan's financial industry and markets. The Topix indexof lenders has ...

China's $600 Billion Subprime Crisis

Bloomberg-8 hours ago
Mint Partners Strategist Bill Blain discusses China's debt, which has ... total troubled advances swelled to 4.2 trillion yuan ($645 billion) as of December, ...
 

Puerto Rico government cites "substantial doubt" about solvency

Reuters - ‎14 hours ago‎
The island is mired in economic crisis and trying to resolve a $70 billion debt load. The report also said the island's fiscal agent, the Government Development Bank, is at risk of missing debt payments and falling below legal reserve requirements in ...
 

Banks cry for central bank help as shares tank, woes persist

Deutsche Welle-Feb 16, 2016
Italy's banks are sitting on 201 billion euros of bad debt, the highest level in Europe. The country also has far too many banks, which the government has said ...

US to sell $55 billion in 4-week bills this week

Reuters-Feb 16, 2016
U.S. to sell $55 billion in 4-week bills this week. WASHINGTON. WASHINGTON Feb 16 For details of the U.S. Treasury's auction of 4-week bills this week, see:.

S. Korea has high potential credit risks: Credit evaluation firm

Korea Times-8 hours ago
"We saw some pickup in household debt in 2015, which has increased the ... credits reached more than 1,100 trillion won (US$896.4 billion) last year, with the ...

Canada government makes clear it can't meet balanced budget goal

Reuters - ‎18 hours ago‎
The Liberals won power last October on a pledge to run three consecutive budget deficits of no more than C$10 billion ($7.2 billion) a year to help fund spending on infrastructure before balancing the books in 2019/20. Morneau - who says weak commodity ...

Chicago teachers hold "walk-ins" at city schools

WREX-TV-7 hours ago
The principals received news of the $85 million cut as the school district faces a $1.1 billion budget deficit, no income from the state of Illinois and no contract ...
 

China's central bank injects another 10 billion yuan into system

MarketWatch - ‎11 hours ago‎
China's central bank injected an additional 10 billion yuan ($1.5 billion) in short-term loans into the banking system Wednesday, in a move aimed at ensuring liquidity after the Lunar New Year. The People's Bank of China pumped 10 billion yuan of seven ...

India plans to inject more funds into state banks as bad loans soar

Reuters - ‎7 hours ago‎
But a surge in provisions for bad loans in a central bank-directed balance sheet clean-up exercise has sent several lenders into losses, hammering their stock prices and limiting their ability to secure external funding as the economy wobbles. It also ...

European banks' risky oil loans make investors edgy

Reuters-1 hour ago
A surge in the cost of credit protection, through credit default swaps, could also force banks to "mark to market" - write down the value of the debt - potentially ...
 

Fortress Hedge Fund Seeing 'More Cracks' in Credit Markets

Bloomberg-11 hours ago
Pressure on oil prices and the yuan contributed to a widening of credit default swaps at Noble Group Ltd., Freeport-McMoRan Inc., Anglo American Plc and ...

 

Mark Cochrane's picture
Mark Cochrane
Status: Diamond Member (Offline)
Joined: May 24 2011
Posts: 1216
Tragically convenient

Just when Erdogan needs a pretext for war, one suddenly appears... Curious coincidence.

 

18 Dead, At Least 61 Injured After Massive "Terrorist" Bombing In Turkish Capital

The huge explosion struck in Ankara outside a military housing complex, a short distance from the Turkish armed forces headquarters. Turkey’s state-run Anadolu news agency said the explosion happened as military buses were passing by.

 

 

Vilbas's picture
Vilbas
Status: Member (Offline)
Joined: Aug 14 2014
Posts: 20
re: Turkey

Welp, that's bad news.  Had already seen plenty of folks talking about this very scenario playing out and right on cue it does.  I can't imagine we'll have to wait around long to see what Turkey's response will be.

mememonkey's picture
mememonkey
Status: Silver Member (Offline)
Joined: Nov 1 2009
Posts: 222
Interesting datapoint on pending invasion

John Bolton's  Neo Con Media outlet  the Gatestone Institute, took time away from flogging the 'Clash of Civilization's' meme, hyping the rapacious nature of Muslim immigrants in Europe  to inveigh on the pending escalation by Turkey and Saudi Arabia in Syria.

While the Neo con's/ Likudniks have been a driving force in the 'rebellion'  and fomenting the unseating of Assad  in Syria, they do not see the pending invasion by Turkey and Saudi's has a wise move.   Recognizing it as a development that will lead to increased Iranian/Hezbollah  involvement and solidification of the Russian position.

I also find it ironic, that they describe the Saudi and Turkish aggression here as a 'trap' that the wily Russians are setting.

I find this PR  missive interesting, especially in light of the Israeli Defense Minister's recent rebuke of Erdogan.   Not sure what the Neo Con's plan B is but they pretty clearly realize that Turkey invading will backfire for their strategic interests.   I can't say as I disagree in that regard. I believe it will be a colossal blunder that will be a milestone in the reorientation of the power structures there.

mememonkey

Quote:

Submitted by Burak Bekdil via The Gatestone Institute,

  • Washington should think more than twice about allowing Turkey and Saudi Arabia, its Sunni allies, militarily to engage their Shiite enemies in Syria. Allowing Sunni supremacists into a deeper sectarian war is not a rational way to block Russian expansion in the eastern Mediterranean. And it certainly will not serve America's interests.

  • Turkey and Saudi Arabia are too weak militarily to damage Russia's interests. It is a Russian trap -- and precisely what the Russians are hoping their enemies will fall into.

http://www.zerohedge.com/news/2016-02-16/russias-trap-luring-sunnis-war

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1512
FBI tactics for arresting Hillary

mememonkey's picture
mememonkey
Status: Silver Member (Offline)
Joined: Nov 1 2009
Posts: 222
re tactics for arresting Hillary

No I don't suppose they will,  that technique plays much better in the media when used on 'domestic' malcontents  terrorists

However one could make a pretty strong argument that they would be saving lives if they did. 

 

mememonkey

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Karen Straghan. Drafting our Daughters.

Karen is going on air in 40 minutes to debate a proposal to draft our daughters.

Head over to "Honey badger radio" on youtube.

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Pernicious Genocide

It is all about pernicious genocide.

If you destroy the wombs, you destroy the people. 

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1756
Turkey must "defend itself" by invading Syria

 

Turkey Blames Kurds, Assad For Terrorist Attack,

Vows Swift Response

As predicted yesterday by Mark Cochrane, The bomb blast in Turkey becomes the justification for an invasion of Syria.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4061
China leads global U.S. debt dump

China leads global U.S. debt dump

CNNMoney - ‎Feb 17, 2016‎
In total, central banks sold off a net $225 billion in U.S. Treasury debt last year, the most since at least 1978, the last year of available data. In 2014, there was a net increase of $45 billion, according to CNNMoney's analysis of Treasury data ...

OECD Cuts Global Growth Forecast and Warns of Growing Risks

Bloomberg - ‎5 hours ago‎
The OECD cut its global growth forecasts, saying the economies of Brazil, Germany and the U.S. are slowing and warning that some emerging markets are at risk of exchange-rate volatility. Global gross domestic product will expand 3.0 percent in 2016 ...

World economy will grow slower than expected: an 'urgent' problem ...

Los Angeles Times-3 hours ago
The U.S. and global economies will grow at a slower pace this year than initially estimated, requiring an "urgent" response from policymakers, the Organization ...

Global downturn spurred Fed to consider changing rate path: minutes

Reuters - ‎18 hours ago‎
WASHINGTON Federal Reserve policymakers worried last month that a global slowdown and financial market selloff could hurt the U.S. economy and considered changing the central bank's planned interest rate hike path for 2016. Although most of the ...

Central Banks Are Facing `Loss of Faith,' Gold Veteran Says

Bloomberg-8 hours ago
“The safe-haven demand appears to be where people are focused on, and that is on a loss of faith in central banks being able to manage through this period,” ...
 

Brazil economic activity tanks again as recession deepens

Reuters UK - ‎4 hours ago‎
BRASILIA Economic activity in Brazil fell for the 10th straight month in December, central bank data showed on Thursday, adding to evidence that the recession in Latin America's biggest country is far from bottoming out. The Brazilian central bank's ...

Real Sinks With Bank Stocks After Brazil Cut Further Into Junk

Bloomberg-27 minutes ago
"Politics, the sovereign downgrade and ever-weakening economic numbers in ... while the country's debt risk as measured by five-year credit-default swaps was ...

Saudi Rating Gets S&P Jolt as Four Oil-Nation Credits Are Cut

Bloomberg-21 hours ago
... outlook on the price of oil,” Steve Hooker, who helps oversee $12.5 billion of debt at Newfleet Asset Management LLC in Hartford, Connecticut, said by phone.
 

Shale Faces March Madness With $1.2 Billion in Interest Due

Bloomberg-2 hours ago
That debt has become increasingly burdensome as prices collapse. ... The industry is facing $9.8 billion in interest payments through the end of this year, ...
 

Japan slips back to deficit as exports tumble 13 percent

The Seattle Times-14 hours ago
TOKYO (AP) — Japan's trade balance returned to deficit in January, with a shortfall of 646 billion yen ($5.65 billion) as exports fell 13 percent from the year ...

Japan will have to double down on stimulus to save Abenomics

Financial Times - ‎3 hours ago‎
Such signs of global weakness quickly overwhelmed Mr Kuroda's latest bazooka; far from falling, the yen burst out of its Y118-Y125 range to trade at Y114. For the first time since prime minister Shinzo Abe launched his Abenomics stimulus in 2012, he ...

U.A.E. Central Bank Foreign Assets Decline $12 Billion

Bloomberg-4 hours ago
The United Arab Emirates central bank's foreign assets fell by $12 billion in ... in the 11 months to December as the country sought to bridge its budget deficit.

Venezuela Boosts Gas Price, Devalues Bolivar as Economy Unravels

Bloomberg-15 hours ago
The only measures that could reduce a fiscal deficit that is now almost 25 ... state oil company Petroleos de Venezuela SA incurred $15.2 billion in expenses and ...

Australian Unemployment Spikes to 6% as Full-Time Jobs Slump

Bloomberg-15 hours ago
Australia's unemployment rate unexpectedly climbed in January as full-time employment slumped by the most since 2013, reflecting waning stimulus from ...

S&P could downgrade more CoCo bonds

Telegraph.co.uk-21 hours ago
The bank insisted that it has plenty of liquidity available to service its debts ... more of the bonds across the market, and could choose to downgrade them, too.

Banking Risks Lurk Behind Beleaguered Portugal Hit by Bond Rout

Bloomberg-9 hours ago
If you have a debt load like Portugal “that is high, and with no control over your ... to raise in the market, given the uncertainty regarding the restructuring of Novo ...

Illinois governor seeks broad power to balance state budget

Reuters-16 hours ago
While the search continues for a constitutional way to rein in a $111 billion unfunded pension liability, Rauner proposed saving $4.8 billion over four years by ...

Mayor Turner: Layoffs likely for City of Houston employees

KHOU-15 hours ago
Because of a budget shortfall, the City has to cut more than $100 million in spending by this summer. During a press conference on Wednesday, Mayor Sylvester ...

Lawmakers draft an Atlantic City 'intervention'

Philly.com - ‎16 hours ago‎
New Jersey lawmakers are renewing a push to let the state take control of Atlantic City's finances in an effort to prevent bankruptcy for the resort town shaken by casino closures. Legislation outlined Wednesday comes after Gov. Christie, Senate ...

1 out of 4 companies consider layoffs this year: survey

Yonhap News-14 hours ago
SEOUL, Feb. 18 (Yonhap) -- One out of four South Korean companies plan to reduce their workforces this year to save costs, bracing for the grim reality of ...

Europe Leveraged Loans Post Longest Run of Losses Since Crisis

Bloomberg-4 hours ago
The cost of insuring European corporate debt is near the highest since June 2013, based on Markit iTraxx indexes of credit-default swaps. Banks are ditching ...

 

IDC: Global IT Spending Slashed To $2.3 Trillion In 2016

InformationWeek-19 hours ago
Global IT spending is expected to slow dramatically in 2016, with China ... to post only a 2% growth rate to $2.3 trillion, compared to an annual growth rate of 5% ...

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments