Investment Markets Overview – w/e 19 July 2013

This week Detroit, Michigan, became the latest and largest US City to file for bankruptcy, following similar filings during 2011/12 by the California cities of San Bernardino and Stockton, Jefferson County, Alabama and, not to forget, Central Falls Rhode Island, Boise County Idaho and Harrisburg Pennsylvania. With debts of $US18BN, $3 billion of which is owed to its retirement system, Detroit is the biggest municipal bankruptcy in the US, so far. The city has been in decline for decades after its population peaked at 1.8m back in the early 1950s but has declined to around 700,000 as the US auto industry shrunk and manufacturing workers sought employment elsewhere. Although private sector jobs have gone, thereby shrinking both the tax-base and the city services provided, public sector entitlements have gone through the roof and corruption has allegedly been endemic within it. Of particular concern to creditors’ has been the 20 cents on the dollar offer to holders of $370m of “general obligation bonds,” on which more comment is made below. 

130719_chart 

Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  •  “General obligations bonds,” where holders have a right to compel the borrowing government to levy a property tax on residents   . . .
     

  • Charts:-
    1. Indices Weekly
    2. S&P/CS 20-City House Price Index vs US Housing Starts
    3. UK Unemployment Rate vs UK Retail Sales inverted
    4. China Retail Sales vs China GDP
    5. Eaton Vance Michigan Muni Bond

 

Table of 15 Indices, 11 columns of detailed information, for accurate analysis

  “Debt is the slavery of the free

Due to holiday arrangements there will be no weekly market overview next week but we return for the week-ending 2nd August 2013.

Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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