In The News Today

Posted at 2:06 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Is something more, or less, important if the BIS warns of it?

Biggest Crisis Test Is Still to Come With Insolvencies, BIS Says
September 14, 2020

(Bloomberg) — Policy makers are facing the most economically challenging part of the Covid-19 crisis in avoiding the creation of “zombie” companies, according to the Bank for International Settlements.

Ultra-easy monetary and fiscal support is helping companies avoid a liquidity crunch after the pandemic closed down businesses and demand collapsed. But that stance bears risks longer-term, said Claudio Borio, head of the Basel-based institution’s Monetary and Economic Department.

“There’s a delicate balance to be struck between on the one hand withdrawing it too early, which will obliviously have short-term costs in terms of economic activity, and withdrawing it too late, which will mean that it will not favor necessary structural adjustments,” he said on Monday.

More…

Bill Holter’s Commentary

No worries though, they’ll put it all back once things return to normal!

Americans Are Raiding Retirement Savings During Coronavirus Pandemic
September 14, 2020

As households struggle to make ends meet, more Americans have been forced to halt or raid their retirement savings in this coronavirus-induced recession.

Nearly 3 in 10 people have decreased the amount of money they’re setting aside for retirement or stopped saving altogether due to the economic fallout of Covid-19, according to a FinanceBuzz survey published in August.

A large share of consumers have also pulled money out of savings.

Around 30% of retirement savers tapped their retirement accounts over the last 60 days, according to a MagnifyMoney survey published in May. Those consumers pulled out $6,757, on average.

Just over half withdrew money in order to cover expenses and 26% did so because of a job loss, according to the survey, which polled 1,239 Americans with retirement accounts.

More…