Month: April 2023

Federal Financial Watchdog Aims to Expand Its Reach

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2023/04/24/federal-financial-watchdog-aims-to-expand-its-reach/

Excerpt:

The Financial Stability Oversight Council — the federal agency in charge of keeping the U.S. financial system upright — wants to change a 2019 document that limits how it tries to keep problems at life insurers, money market funds, cryptocurrency firms and other nonbank financial companies from destroying the economy.

FSOC announced Friday that it’s proposing a new version of the document that would free it from the 2019 restrictions.

….

FSOC started a fight with life insurers and their regulators by designating companies such as MetLife and Prudential Financial as “systemically important financial institutions,” or companies needing extra oversight.

Life insurers argued that the SIFI designation process was unclear, arbitrary and unfair.

MetLife sued FSOC over its SIFI designation. A federal appeals court threw out MetLife’s designation in 2018.

FSOC withdrew the last designation of a nonbank company — Prudential Financial — in October 2018.

…..

FSOC says it needs more flexibility to address potential risks as early and as quickly as possible, and that comparing the potential benefits of focusing attention on a nonbank company to the potential impact on the company is not useful.

“This is in part because it is not feasible to estimate with any certainty the likelihood, magnitude or timing of a future financial crisis,” FSOC said. FSOC argued that, if it does prevent a financial crisis, it would save the country trillions of dollars.

FSOC noted that it consults with state regulators and federal regulatory agencies regularly, and that its own members are made up mostly of state and federal agency heads.

“The council expects that most potential risks to financial stability will continue to be addressed by existing regulators rather than by use of the council’s nonbank financial company designation authority,” FSOC said.

Author(s): Allison Bell

Publication Date: 24 Apr 2023

Publication Site: Think Advisor

Nevada Bill Marks Third Try at Establishing State-Sponsored Retirement Plan

Mary Pat Campbell

Link: https://www.ai-cio.com/news/nevada-bill-marks-third-try-at-establishing-state-sponsored-retirement-plan/

Excerpt:

Nevada State Senator Dallas Harris is hoping the third time is the charm and has introduced a bill to create a state-supported retirement plan after two previous attempts by the legislature died on the vine.

The bill, SB305, would create the Nevada Employee Savings Trust, which would be directed by a board of trustees with the power to establish a retirement savings program and automatically enroll private employees who do not have a retirement savings plan available via their workplace. To be enrolled, an employee would need to be at least 18 years old, have worked at the same place for 120 days and have wages that are allocable to the state, although employees would be allowed to opt out.

….

The current bill stipulates that the board is required to establish one or more investment funds and that the underlying investments of each fund must be diversified “so as to minimize the risk of large losses under any circumstances.” The board also may, at any time, add, replace or remove any investment fund.

 The underlying investments may include shares of mutual funds, exchange-traded funds, publicly traded equity and fixed-income securities, as well as other investments available for investment. However, the investment funds would be prohibited from investing in any bond, debt instrument or other security issued by the state of Nevada.

Author(s): Michael Katz

Publication Date: 24 Apr 2023

Publication Site: ai-CIO

The economic impact of the opioid epidemic

Mary Pat Campbell

Link: https://www.brookings.edu/blog/usc-brookings-schaeffer-on-health-policy/2023/04/17/the-economic-impact-of-the-opioid-epidemic/

Graphic:

Excerpt:

While the opioid epidemic has had significant impacts across the labor market, its effects have been particularly pronounced in specific occupations and industries. A CDC analysis of mortality data from 21 states concluded that unintentional and undetermined overdose deaths accounted for a disproportionate share of all deaths in the following six occupational groups: construction, extraction (e.g., mining), food preparation and serving, health care practitioners, health care support, and personal care and service. These fatalities are particularly concentrated in construction and extraction: an analysis by the Massachusetts Department of Public Health found that individuals employed in construction and extraction accounted for over 24% of all overdose deaths in the state’s working population.

Notably, the jobs with the highest rates of opioid overdose fatalities generally have high occupational injury rates and low access to paid sick leave. Figure 1 demonstrates that the industries with the highest rates of overdose fatalities in the workplace have elevated occupational injury rates for fractures and musculoskeletal disorders, both of which are significant risk factors for long-term opioid use.

Author(s): Julia Paris, Caitlin Rowley, and Richard G. Frank

Publication Date: 17 April 2023

Publication Site: Brookings

Recent SEC Proposals to Come Under Scrutiny of Financial Services Committee

Mary Pat Campbell

Link: https://www.ai-cio.com/news/sec-recent-proposals-to-come-under-scrutiny-of-financial-services-committee/

Excerpt:

The House Committee on Financial Services will hold an oversight hearing on the Securities and Exchange Commission next Wednesday and Chairman Gary Gensler is expected to testify. The SEC’s proposed budget and their recent proposals, especially the climate disclosure proposal will all likely be discussed.

The SEC requested $2.436 billion for 2024, an increase of $265 million from this year primarily to hire new staff. The new hires are proportionally concentrated in the Divisions of Risk Analysis and Investment Management, whose staffs would increase by more than 5% each. The largest aggregate staffing increase would be to the Division of Enforcement, from its current 1,505 positions to 1,558.

…..

Womack also suggested that the SEC’s proposal on climate disclosure, which would require entities registered with the SEC to disclose their carbon emissions, was not within the SEC’s legal authority, a concern shared by several other Republican members of the committee.

The climate disclosure proposal has been a sensitive issue for agricultural interests. Representative Ashley Hinson, R-Iowa, emphasized the potential impact of this rule on farmers at the hearing. She said that this proposal would be bad for farmers in her state who would have to collect and disclose their emissions data to issue securities and to work with larger businesses who must collect emissions data from their value chain.

Representative Michael Cloud, R-Texas, shared this sentiment during the hearing and said that any issuer subject to Scope 3 disclosure would compel farms in their supply chain to collect this data, a tedious process, which might reduce farmer’s access to credit if they do not comply.

Author(s): Paul Mulholland

Publication Date: 12 April 2023

Publication Site: ai-CIO

In Communities Where Civic Health Is Poor, Lives Are Shorter

Mary Pat Campbell

Link: https://www.governing.com/now/in-communities-where-civic-health-is-poor-lives-are-shorter

Graphic:

Excerpt:

Neglected civic infrastructure — schools, parks, community centers, libraries and other public spaces that help foster a sense of belonging — coupled with barriers to participation in civic life aren’t just manifestations of poor governance. According to the 2023 County Health Rankings & Roadmaps (CHR&R) from the University of Wisconsin Population Health Institute (UWPHI), they have health consequences.

The rankings, published since 2010, were developed to provide insight and guidance for improving health equity. The new report focuses on relationships between the state of civic infrastructure, community engagement and well-being.

“There is a connection between our civic health and thriving people and places,” says Sheri Johnson, the director of UWHPI.

The pandemic made the chronic stress faced by those without access to broadband connections, safe public spaces or other civic resources more visible than ever. Public health researcher Arline Geronimus has been at the forefront of research demonstrating that the stresses of poverty and discrimination actually cause cellular-level damage, overloading the hormonal systems that help us survive dangerous situations.

Author(s): Carl Smith

Publication Date: 4 April 2023

Publication Site: Governing

Social Security Surplus Will Run Out in 10 Years, Report Estimates

Mary Pat Campbell

Link: https://www.thewealthadvisor.com/article/social-security-surplus-will-run-out-10-years-report-estimates

Excerpt:

Social Security’s reserves are projected to run out in 2033, according to a new report, at which point the entitlement program’s trust fund will be able to pay out just 77% of benefits to seniors.

That estimate is a year earlier than what was stated in the 2022 report for the Old-Age and Survivors Insurance (OASI) Trust Fund, according to the annual report released Friday from the trustees of the program. The revision reflects a 3% reduction in labor productivity and gross domestic product.

One bright spot: A projection for a key trust fund for Medicare is better. It’s expected to exhaust its reserves by 2031, three years later than reported last year, after new data forecast lower health-care spending.

Author(s): Janna Herron, Yahoo Finance

Publication Date: 31 March 2023

Publication Site: Wealth Advisor

Credit Default Swaps Imply a Two Percent Chance the US Defaults

Mary Pat Campbell

Link: https://mishtalk.com/economics/credit-default-swaps-imply-a-two-percent-chance-the-us-defaults

Graphic:

Excerpt:

The implied odds are two percent but contract trading is very thin. And some of the protection is mandatory.  If regulators raise risk flags, some banks feel compelled to buy insurance. 

So most likely the true odds of default are much lower.

There is also a three day grace period. We could have a default, but if it is rectified within three days, those betting on a default will be technically correct yet receive no payout.

I believe the odds of a payout on these contracts is essentially zero. But yeah, if there is a default for a couple of days, there will be “chaos” as several people on Twitter have commented. 

Author(s): Mike Shedlock

Publication Date: 21 Apr 2023

Publication Site: Mish Talk

GUN VIOLENCE ARCHIVE

Mary Pat Campbell

Link: https://www.gunviolencearchive.org/

Graphic:

Excerpt:

PUBLISHED DATE: April 20, 2023

Gun violence  and crime incidents are collected/validated from 7,500 sources daily – Incident Reports and their source data are found at the gunviolencearchive.org website.

Footnotes

  1. Number of source verified deaths and injuries
  2. Number of INCIDENTS reported and verified
  3. Calculation based on CDC Suicide Data
  4. Actual total of all non-suicide deaths plus daily calculated suicide deaths

All numbers are subject to change or incidents recategorized as new evidence is established and verified.

METHODOLOGY & DEFINITIONS AVAILABLE AT:
https://www.gunviolencearchive.org/methodology

www.gunviolencearchive.org
www.facebook.com/gunviolencearchive
On Twitter @gundeaths

Publication Date: accessed 20 April 2023

Publication Site: Gun Violence Archive

APPENDIX 1: MAJOR HURRICANES IN TEXAS AND THE U.S. —A HISTORICAL PERSPECTIVE

Mary Pat Campbell

Link: https://comptroller.texas.gov/economy/fiscal-notes/2018/special-edition/history.php

Graphic:

Excerpt:

In a typical year, about 100 storms and tropical disturbances develop in the Atlantic Ocean, Caribbean Sea and Gulf of Mexico. Some of these turn into tropical storms, and on average, two each year become hurricanes that make landfall in the U.S.40 Between 1851 and 2016, 289 hurricanes affected the continental U.S. Of these, 63 made landfall in Texas.41

….

Of course, hurricanes and other major storms affect the entire country, not just the Gulf Coast. Exhibit 6 lists the most destructive storms affecting the U.S. in the last half-century.

Hurricane Katrina, which caused $161.3 billion in damages, still ranks as the costliest storm in American history; Hurricane Harvey is expected to rank second, with total estimated damages of about $125 billion.45

Publication Date: February 2018, accessed April 2023

Publication Site: Fiscal Notes, Comptroller of Texas

What’s behind the US baby bust? Americans are prioritizing careers and leisure activities over having a family

Mary Pat Campbell

Link: https://www.dailymail.co.uk/health/article-11628235/Whats-baby-bust.html

Graphic:

Excerpt:

Fertility in the US has long been falling. A half-century ago in 1970, the average woman was having 2.39 children over her entire life-span. 

In 1920 – a full century ago – the rate was at 3.17. Earliest available data from 1800 puts the rate at 7.04. 

The Census Bureau predicts there will be 94.7million Americans over the age of 65 by 2060, accounting for 23 percent of the nation’s population. In 2020, the most recent Census, 56million Americans were over 65 – accounting for just 17 percent of the population.

A half-century ago in 1970, seniors made up around 10 percent of the US population.

This puts an excess burden on social programs like Medicare and Social Security, as this portion of the population pulls away its resources but does not pay into them.

Author(s): MANSUR SHAHEEN DEPUTY HEALTH EDITOR FOR DAILYMAIL.COM

Publication Date: 16 January 2023

Publication Site: Daily Mail UK