Daily Digest

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Daily Digest 3/16 - Farmers Struggling To Pay Debts, Recent Signs of Economic Troubles

Wednesday, March 16, 2016, 11:44 AM

Economy

Unpaid subprime car loans hit 20-year high

The rate of seriously delinquent subprime car loans soared above 5% in February, according to Fitch Ratings. That's worse than during the Great Recession and the highest level since 1996.

Fracking accounts for about half of U.S. oil production

Hydraulic fracturing involves forcing a liquid (primarily water) under high pressure from a wellbore against a rock formation until it fractures. The fracture lengthens as the high-pressure liquid in the wellbore flows into the formation. This injected liquid contains a proppant, or small, solid particles (usually sand or a manmade granular solid of similar size) that fills the expanding fracture.

Price of branded prescription drugs in the US doubles in 5 years

Express Scripts, a “pharmacy benefits manager” that negotiates with drugmakers on behalf of US health insurers and employers, said the average wholesale price of branded medicines, which are protected by patents, rose 16 per cent last year and was up a total of 98 per cent since 2011.

Brazil pension funds see gap widen as liabilities rise

Brazilian pension funds last year probably had their worst annual performance since at least 2007, as liabilities rose and returns slumped in the wake of a deep political and economic crisis, an industry group said on Tuesday.

Canada deficit to hit C$29 billion this year, may prevent another rate cut: Reuters poll

Finance Minister Bill Morneau, who delivers his first budget on March 22, warned last month that the deficit would be much larger than the campaign target of C$10 billion, as low commodity prices are weakening growth. Government sources have said it would not be bigger than C$30 billion.

Cash-strapped farmers struggle to pay cropland rents

With farm real estate debt across the United States at its highest levels since the farm crisis years of the early '80s, farmers are increasingly nervous about trying to turn a profit while paying sky-high rents.

India's Ugly Bad-Loans Situation Is About to Get Even Worse

That means India’s already-ugly bad loan situation is set to get even worse. The banks so far have been willing to disclose that $131 billion, or about 14 percent of their total lending, has gone bad since the RBI stepped up pressure on them last year. Another $36 billion may yet be added to that total, bringing total non-performing loans to 18 percent, when the audit finishes on March 31, according to Credit Suisse Group AG.

Illinois state not paying out on auto accident claims

“The way I take this: If a state employee runs into your car and damages a fender or a bumper or whatever, the state isn’t paying that now,” said attorney Jim Ackerman, whose work includes auto liability cases.

Yield-starved European insurers look past risks to mull emerging bonds

Almost a quarter of insurers could fail to meet obligations in the coming years if interest rates remain low for a prolonged period, Europe's insurance and pensions regulator warned in 2014. Since then, 10-year yields on German government bonds have fallen to zero and the amount of European debt trading with negative yields has swollen to around 3 trillion euros ($3.33 trillion).

It’s payback time for emerging markets’ $1.6-trillion debt

The debt-servicing hump - with annual repayments jumping by more than $100-billion by 2020 compared with 2015 - is a result of a borrowing spree after the 2008 financial crisis.

Recent Signs of Economic Troubles

The total amount of US credit card debt is approaching the one trillion dollar mark for the first time, leaving many experts to express concern that consumers have returned to their old spending habits. Following the recession, many made an effort to pay down credit card debt or at least stop adding to it, but the last quarter of 2015 shows that most have returned to their old spending habits. During that quarter alone, consumers charged up more new debt than was accumulated during the combined years of 2009, 2010, and 2011. However, this is just one sign that the economy may once again be headed into a downward spiral.

Linn Energy says bankruptcy may be 'unavoidable'

With around $10 billion in debt, Linn would be the largest U.S. oil company to go bankrupt in the current energy rout. About 40 oil and gas producers across the globe have filed for bankruptcy since oil prices began to tumble in late 2014, and up to a third of all energy companies may fail unless prices recover, consulting firm Deloitte said last month.

French growth to be less than 1.4 pct in 2016 - central bank chief

"We (the ECB) revised growth down to 1.4 percent for the whole of the euro zone and France will be a bit below that," Villeroy, who sits on the ECB's governing council, said on France Inter radio.

Gold & Silver

Click to read the PM Daily Market Commentary: 3/15/16

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."

4 Comments

saxplayer00o1's picture
saxplayer00o1
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Repost Of Today's News

Kuroda Says Minus 0.5% Rate Is Theoretically Possible for Japan

Bloomberg - ‎14 hours ago‎
The Bank of Japan has quite a lot of room to cut its key interest rate further and theoretically it could go to minus 0.5 percent, Governor Haruhiko Kuroda said in parliament Wednesday. While the BOJ kept policy unchanged on Tuesday, Kuroda underscored ...
 

Man With Longest History of Negative Rates Says We Can Go Lower

Bloomberg-3 hours ago
The comments come as a growing number of increasingly desperate central bankers across the globe resort to negative interest rate policies as a way to revive ...
 

Global banking system awash with cash, but lending stagnates

Reuters-4 hours ago
This is potentially dangerous for the world economy because after nearly a decade of unprecedented stimulus to revive the global economy and financial system ...
 

Emerging debt swelled $1.6 trillion in 2015, poses risks - IIF

Yahoo News UK-2 minutes ago
LONDON (Reuters) - Total debt in emerging markets grew by $1.6 trillion in 2015 to more than $62 trillion, the Institute of International Finance said on ...
 

LA County's debt has doubled, mostly because of new accounting ...

Los Angeles Times-10 hours ago
Under a required change in accounting practices, Los Angeles County's projected long-term debt has doubled to $20 billion, largely the result of unfunded ...

Dan Walters: California pension debts revealed

Sacramento Bee (blog)-16 hours ago
Thanks to new accounting standards, California's state and local governments are being forced to acknowledge tens of billions of dollars in previously obscure ...

Peabody flags bankruptcy risk after missing payment

CNBC-4 hours ago

Peabody's lenders are pushing the company to restructure its debt through bankruptcy but ... 31, the company had a total debt of $6.3 billion and cash and cash ..

Shadow Lending for Chinese Home Down Payments Prompts ...

Bloomberg-16 hours ago
... bring further risks to the financial system, as the banks already have a lot of bad debt. ... Some 660 such P2Ps made 115.5 billion yuan worth of online deposit, ...

California's largest district faces fiscal uncertainty despite infusion of ...

EdSource-10 hours ago
... year of dire warnings, California's largest school district, Los Angeles Unified, is finally taking steps to address budget deficits projected to exceed a half billion ...

UK and US groups weighed down by $520bn in pension deficits

Financial Times - ‎10 hours ago‎
Citi said there were $78tn of unfunded or underfunded government pension liabilities in the OECD. That compares with published national debt of $44tn. “When you look at the magnitude of unfunded pension liabilities, it is a ticking time bomb,” said ...
 
 

Rich countries have a $78 trillion pension problem

CNBC - ‎2 hours ago‎
The total value of unfunded or underfunded government pension liabilities for 20 countries belonging to the Organisation for Economic Co-operation and Development (OECD) — a group of largely wealthy countries — is $78 trillion, Citi said. (The ...

Cash in Vaults Tested by Munich Re as Banks Charge to Hold Funds

Bloomberg-1 hour ago
Institutional investors including insurers, savings banks and pension funds are ... a sub-zero deposit rate to push down market credit costs and spur lending.

 

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saxplayer00o1
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Debt climbs by over $1 trillion over 2015 (Treasury Direct)

 

Treasury Direct results for one year

 

US budget deficit edges up

Arkansas Online - ‎Mar 11, 2016‎
The budget office sees the annual deficit climbing by 24 percent to $544 billion in the current budget year. Obama's administration is even more pessimistic, forecasting in its 2017 budget released last month that the deficit will hit $616 billion this ...
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Shine the light

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saxplayer00o1
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Joined: Jul 30 2009
Posts: 4066
Oil Investors See $7.4 Billion Vanish as Dividends Targeted

Moody's: Negative interest rates in Switzerland, Denmark, Sweden ...

Moodys.com (press release) (subscription)-22 hours ago
Moody's report, entitled "Governments of Switzerland, Denmark & Sweden: Negative interest rates have unintended consequences, with Sweden most at risk of ...

Negative Rates and Japan's Pension Crunch

Wall Street Journal-8 hours ago
But for companies who haven't saved enough to meet those obligations, negative interest rates could make a bad situation worse. Many Japanese companies ...

Negative Rates Are a Possibility, Says Norwegian Central Bank ...

Wall Street Journal-1 hour ago
OSLO— Oystein Olsen, governor of Norway's central bank, said Thursday that the bank had room to cut rates below zero in case the oil-exposed Nordic ...

Foreign governments dump U.S. debt at record rate

CNNMoney - ‎22 hours ago‎
That's why total foreign holdings of U.S. debt actually rose in January to $6.18 trillion. That's because demand from global investors continues to be high. Besides, some foreign governments added to their piles of Treasury bonds, including Japan ...

Houston's $3 Billion of Debt Cut by Moody's After Oil-Price Drop

Bloomberg-14 hours ago
Houston's $3 billion of general-obligation debt was cut one level by Moody's Investors Service, which cited weakening economic performance due to lower oil ...

If CPS ever misses a debt payment, property owners would see ...

Chicago Tribune-4 hours ago
But if the school district ever comes up short on its debt payments, the investors ... together enough money for a $474 million payment on its $6 billion debt load.

Chicago settling $390 million tab when city can least afford it

Chicago Tribune-3 hours ago
The result: issuers have paid billions to unravel those agreements. ... a plan to end the city's interest-rate swaps and convert its variable-rate debt to fixed rate.

Oil Investors See $7.4 Billion Vanish as Dividends Targeted

Bloomberg-13 hours ago
The cost to shareholders: more than $7.4 billion in lost income, compared to what ... while ensuring it has enough money to pay debts and grow, Kinder said.

 

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