May 28, 2017, 7:04 am
Facebook iconTwitter iconYouTube iconGoogle+ icon
1 Philippine Peso = 0.07372 UAE Dirham
1 Philippine Peso = 2.41289 Albanian Lek
1 Philippine Peso = 0.03568 Neth Antilles Guilder
1 Philippine Peso = 0.32234 Argentine Peso
1 Philippine Peso = 0.02694 Australian Dollar
1 Philippine Peso = 0.03594 Aruba Florin
1 Philippine Peso = 0.04014 Barbados Dollar
1 Philippine Peso = 1.61883 Bangladesh Taka
1 Philippine Peso = 0.03501 Bulgarian Lev
1 Philippine Peso = 0.00757 Bahraini Dinar
1 Philippine Peso = 34.21016 Burundi Franc
1 Philippine Peso = 0.02007 Bermuda Dollar
1 Philippine Peso = 0.02775 Brunei Dollar
1 Philippine Peso = 0.1385 Bolivian Boliviano
1 Philippine Peso = 0.06559 Brazilian Real
1 Philippine Peso = 0.02007 Bahamian Dollar
1 Philippine Peso = 1.29566 Bhutan Ngultrum
1 Philippine Peso = 0.20514 Botswana Pula
1 Philippine Peso = 401.84665 Belarus Ruble
1 Philippine Peso = 0.0401 Belize Dollar
1 Philippine Peso = 0.02701 Canadian Dollar
1 Philippine Peso = 0.01958 Swiss Franc
1 Philippine Peso = 13.41871 Chilean Peso
1 Philippine Peso = 0.13757 Chinese Yuan
1 Philippine Peso = 58.49057 Colombian Peso
1 Philippine Peso = 11.65616 Costa Rica Colon
1 Philippine Peso = 0.02007 Cuban Peso
1 Philippine Peso = 1.98153 Cape Verde Escudo
1 Philippine Peso = 0.47496 Czech Koruna
1 Philippine Peso = 3.56443 Djibouti Franc
1 Philippine Peso = 0.13368 Danish Krone
1 Philippine Peso = 0.94018 Dominican Peso
1 Philippine Peso = 2.17375 Algerian Dinar
1 Philippine Peso = 0.28102 Estonian Kroon
1 Philippine Peso = 0.3623 Egyptian Pound
1 Philippine Peso = 0.45965 Ethiopian Birr
1 Philippine Peso = 0.01796 Euro
1 Philippine Peso = 0.04169 Fiji Dollar
1 Philippine Peso = 0.01563 Falkland Islands Pound
1 Philippine Peso = 0.01565 British Pound
1 Philippine Peso = 0.08608 Ghanaian Cedi
1 Philippine Peso = 0.90225 Gambian Dalasi
1 Philippine Peso = 182.35648 Guinea Franc
1 Philippine Peso = 0.14716 Guatemala Quetzal
1 Philippine Peso = 4.09595 Guyana Dollar
1 Philippine Peso = 0.15642 Hong Kong Dollar
1 Philippine Peso = 0.46989 Honduras Lempira
1 Philippine Peso = 0.13267 Croatian Kuna
1 Philippine Peso = 1.33601 Haiti Gourde
1 Philippine Peso = 5.51927 Hungarian Forint
1 Philippine Peso = 267.16178 Indonesian Rupiah
1 Philippine Peso = 0.0717 Israeli Shekel
1 Philippine Peso = 1.29566 Indian Rupee
1 Philippine Peso = 23.70534 Iraqi Dinar
1 Philippine Peso = 651.18426 Iran Rial
1 Philippine Peso = 2.00763 Iceland Krona
1 Philippine Peso = 2.60177 Jamaican Dollar
1 Philippine Peso = 0.01422 Jordanian Dinar
1 Philippine Peso = 2.23294 Japanese Yen
1 Philippine Peso = 2.06945 Kenyan Shilling
1 Philippine Peso = 1.36341 Kyrgyzstan Som
1 Philippine Peso = 81.17021 Cambodia Riel
1 Philippine Peso = 9.03573 Comoros Franc
1 Philippine Peso = 18.06503 North Korean Won
1 Philippine Peso = 22.47491 Korean Won
1 Philippine Peso = 0.00608 Kuwaiti Dinar
1 Philippine Peso = 0.01646 Cayman Islands Dollar
1 Philippine Peso = 6.21999 Kazakhstan Tenge
1 Philippine Peso = 164.1108 Lao Kip
1 Philippine Peso = 30.22079 Lebanese Pound
1 Philippine Peso = 3.06604 Sri Lanka Rupee
1 Philippine Peso = 1.82658 Liberian Dollar
1 Philippine Peso = 0.25943 Lesotho Loti
1 Philippine Peso = 0.06119 Lithuanian Lita
1 Philippine Peso = 0.01246 Latvian Lat
1 Philippine Peso = 0.02797 Libyan Dinar
1 Philippine Peso = 0.19607 Moroccan Dirham
1 Philippine Peso = 0.36395 Moldovan Leu
1 Philippine Peso = 1.10036 Macedonian Denar
1 Philippine Peso = 27.19791 Myanmar Kyat
1 Philippine Peso = 48.1935 Mongolian Tugrik
1 Philippine Peso = 0.16111 Macau Pataca
1 Philippine Peso = 7.18587 Mauritania Ougulya
1 Philippine Peso = 0.6951 Mauritius Rupee
1 Philippine Peso = 0.31052 Maldives Rufiyaa
1 Philippine Peso = 14.40426 Malawi Kwacha
1 Philippine Peso = 0.37051 Mexican Peso
1 Philippine Peso = 0.08565 Malaysian Ringgit
1 Philippine Peso = 0.25809 Namibian Dollar
1 Philippine Peso = 6.4432 Nigerian Naira
1 Philippine Peso = 0.6002 Nicaragua Cordoba
1 Philippine Peso = 0.16848 Norwegian Krone
1 Philippine Peso = 2.07648 Nepalese Rupee
1 Philippine Peso = 0.02843 New Zealand Dollar
1 Philippine Peso = 0.00773 Omani Rial
1 Philippine Peso = 0.02007 Panama Balboa
1 Philippine Peso = 0.06543 Peruvian Nuevo Sol
1 Philippine Peso = 0.06377 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.10277 Pakistani Rupee
1 Philippine Peso = 0.0752 Polish Zloty
1 Philippine Peso = 111.54155 Paraguayan Guarani
1 Philippine Peso = 0.07308 Qatar Rial
1 Philippine Peso = 0.08182 Romanian New Leu
1 Philippine Peso = 1.13952 Russian Rouble
1 Philippine Peso = 16.44902 Rwanda Franc
1 Philippine Peso = 0.07527 Saudi Arabian Riyal
1 Philippine Peso = 0.15837 Solomon Islands Dollar
1 Philippine Peso = 0.26825 Seychelles Rupee
1 Philippine Peso = 0.13368 Sudanese Pound
1 Philippine Peso = 0.17472 Swedish Krona
1 Philippine Peso = 0.02777 Singapore Dollar
1 Philippine Peso = 0.01563 St Helena Pound
1 Philippine Peso = 0.44572 Slovak Koruna
1 Philippine Peso = 150.54195 Sierra Leone Leone
1 Philippine Peso = 11.01967 Somali Shilling
1 Philippine Peso = 440.26096 Sao Tome Dobra
1 Philippine Peso = 0.17507 El Salvador Colon
1 Philippine Peso = 10.33681 Syrian Pound
1 Philippine Peso = 0.25802 Swaziland Lilageni
1 Philippine Peso = 0.68306 Thai Baht
1 Philippine Peso = 0.04816 Tunisian Dinar
1 Philippine Peso = 0.04615 Tongan paʻanga
1 Philippine Peso = 0.07172 Turkish Lira
1 Philippine Peso = 0.13487 Trinidad Tobago Dollar
1 Philippine Peso = 0.60472 Taiwan Dollar
1 Philippine Peso = 44.74107 Tanzanian Shilling
1 Philippine Peso = 0.5289 Ukraine Hryvnia
1 Philippine Peso = 72.26014 Ugandan Shilling
1 Philippine Peso = 0.02007 United States Dollar
1 Philippine Peso = 0.56624 Uruguayan New Peso
1 Philippine Peso = 76.29466 Uzbekistan Sum
1 Philippine Peso = 0.20022 Venezuelan Bolivar
1 Philippine Peso = 456.12204 Vietnam Dong
1 Philippine Peso = 2.15295 Vanuatu Vatu
1 Philippine Peso = 0.05162 Samoa Tala
1 Philippine Peso = 11.77599 CFA Franc (BEAC)
1 Philippine Peso = 0.0542 East Caribbean Dollar
1 Philippine Peso = 11.81574 CFA Franc (BCEAO)
1 Philippine Peso = 2.13228 Pacific Franc
1 Philippine Peso = 5.01706 Yemen Riyal
1 Philippine Peso = 0.25808 South African Rand
1 Philippine Peso = 104.16499 Zambian Kwacha
1 Philippine Peso = 7.26415 Zimbabwe dollar

Consumer debt growth can’t outpace wages

By James Saft

US consumers are taking out debt at a far faster rate than their incomes or the economy are growing, and just as we may be hitting a peak in employment.

Add in rising interest rates courtesy of the Federal Reserve and you have the consumer sector - 70 percent of the US economy - treading on thin and thinning ice.

U.S. consumers have run up over $1 trillion on credit cards, hitting a level not seen since January 2009 and up 6.2 percent from a year ago. For comparison, wages are up less than 3 percent and the economy is growing just under 2 percent a year.

Borrowers can only take on debt at twice the rate they increase the ability to service it for so long.

Student and auto loans are also at $1-trillion-plus levels and also growing about twice as fast as wages or the economy.

To be sure, the percentage of disposable income the average household needs to service debt is hovering at about 10 percent, near all-time lows. So too are interest rates, and the thing about interest rate changes at very low levels is that small increases in absolute terms imply large increases in proportional ones.

Two important points about the backdrop:

Firstly, the Fed, happy to ‘normalize’ rates while it can, is likely to hike rates by a quarter percentage point twice more this year and, as indicated in the most recent interest-rate-setting meeting minutes, is also planning to begin the long and fraught process of unwinding its $4.5 trillion balance sheet.

Secondly, while labor market conditions are on par with their 2006-2007 peak, according to Barclays Capital, momentum in the labor market is flagging. Friday’s jobs report showed payrolls expanding by just 98,000 in March, far less than expected, even as the jobless rate fell to just 4.5 percent.

Fed tightening, both balance sheet and interest rate variety, will both “only serve to strain liquidity conditions and raise debt service costs,” economist David Rosenberg of Gluskin Sheff wrote in a note to clients.

“Nobody sees a recession coming, but history shows there is a 90 percent chance we see one in the coming year. Household debt loads are at cycle highs. Fed rate hikes mean interest costs will be absorbing funds that would otherwise be diverted to cyclical spending.”

The larger question is why workers in an economy with such low unemployment see the need to borrow aggressively, even if debt service levels indicate they have headroom.

That’s because though many jobs have been created, they are not, by and large, jobs which allow for middle-class standards of living without spending above one’s income. The savings rate, at 5.5 percent, is well above the crazy 1.9 percent lows of 2005 but is hugely flattered by savings among the richest. Among the bottom 90 percent of Americans, the savings rate since the financial crisis has bumped along near zero, with the lion’s share made up by a 38 percent savings rate among the top 1 percent.

This paints a picture of an economy badly out of balance. Those consumers taking on credit card debt, and auto debt, and student debt are not, by and large, doing so out of confidence and with prudence, but because of need.

Wages simply have not risen enough for the typical household to make its way, and the fact that debt service has been kept artificially low only serves to underscore exactly how aberrant matters are.

This time, of course, won’t be like last time, and financial institutions are far less likely to be caught wrong-footed by a sudden downturn in the economy. That’s positive because we are far less likely, should we slide into recession, to face anything like a banking crisis. Banks are taking on less risk and monitoring the risks of their consumer-facing portfolios more closely.

This, though, means that banks will likely turn off the tap of credit availability more quickly, and with less provocation, then last time. Banks won’t be surprised by a recession, they will help cause it by tightening credit availability.

Data from the Federal Reserve’s survey of senior loan officers already shows a tightening is under way, with banks moving from making consumer debt easier to get to harder in the last six months. The last time we saw this pattern was 2008, and though the banks seem to be out in front of economic developments this time it will be of little comfort.

An economy this reliant on debt finance among a huge mass of households who can barely keep their heads above water is a risky proposition. – Reuters
Rating: 
No votes yet
Twitter icon
Facebook icon
Google icon
LinkedIn icon
Pinterest icon
Reddit icon
Yahoo! icon
e-mail icon

Column of the Day

Sad InfinItems

By DAHLI ASPILLERA | May 26,2017
364 View(s) 0 Comment(s)
‘Week of terrorist activism. Lobby money vs Gina Lopez. Mariano, Taguiwalo--Quo vadis? Killer drivers caused 24,565 crashes years 2014-16.’

Opinion of the Day

Very dangerous

By DODY LACUNA | May 26, 2017
564 View(s) 0 Comment(s)
‘This impulsive President has failed to take the constitutionally provided calibrated moves...’