HOUSE_OVERSIGHT_020935.jpg
1.4 MB
Extraction Summary
1
People
6
Organizations
1
Locations
0
Events
0
Relationships
3
Quotes
Document Information
Type:
Presentation slide / financial analysis
File Size:
1.4 MB
Summary
This document contains two slides from a financial presentation titled 'USA Inc. | Income Statement Drilldown' (pages 187 and 188), produced by KPCB (Kleiner Perkins). The slides clearly date the data to February 2010. The content analyzes the US economic situation, highlighting the difficulty of meeting pension obligations with low interest rates and detailing specific government spending losses (Medicaid, Medicare, Social Security) versus one-time charges (TARP, ARRA). The document bears a 'HOUSE_OVERSIGHT' Bates stamp, indicating it was part of a document production for a congressional investigation.
People (1)
| Name | Role | Context |
|---|---|---|
| Betsy Graseck | Analyst/Researcher |
Cited as the source for the 10-year Treasury coupon rate from Morgan Stanley Research.
|
Organizations (6)
| Name | Type | Context |
|---|---|---|
| KPCB |
Kleiner Perkins Caufield & Byers (KP CB), the firm producing the presentation.
|
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| Morgan Stanley Research |
Source of financial data.
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| White House OMB |
Source of data for entitlements and spending figures.
|
|
| Fannie Mae |
Listed under large one-time charges.
|
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| Freddie Mac |
Listed under large one-time charges.
|
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| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT'.
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Locations (1)
| Location | Context |
|---|---|
|
Subject of the financial analysis ('USA Inc.').
|
Key Quotes (3)
"Investors Struggle with Today’s Low ~4% Risk Free Rate"Source
HOUSE_OVERSIGHT_020935.jpg
Quote #1
"Pension funds & other investors look for ~8% annual returns in order to meet promised payouts."Source
HOUSE_OVERSIGHT_020935.jpg
Quote #2
"The choice is either to reduce obligations… or …Invest in riskier assets."Source
HOUSE_OVERSIGHT_020935.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,475 characters)
Investors Struggle with Today’s Low ~4% Risk Free Rate
• Pension funds & other investors look for ~8% annual returns in order to meet promised payouts.
• The challenge is far greater than before given:
• Rising obligations relative to income
• Lower interest rates
• Promises (e.g., pension, healthcare) made during an 8% interest rate environment are much harder to meet when the risk free rate has fallen from 8% to 3.6%.1
• The choice is either to reduce obligations…
or
…Invest in riskier assets.
• The challenge is far greater than before given:
• Rising obligations relative to income
• Lower interest rates
• Promises (e.g., pension, healthcare) made during an 8% interest rate environment are much harder to meet when the risk free rate has fallen from 8% to 3.6%.1
• The choice is either to reduce obligations…
or
…Invest in riskier assets.
KP
CB
www.kpcb.com
Note: 10-year Treasury coupon rate as of 2/18/2010. Source: Betsy Graseck, Morgan Stanley Research.
USA Inc. | Income Statement Drilldown 187
CB
www.kpcb.com
Note: 10-year Treasury coupon rate as of 2/18/2010. Source: Betsy Graseck, Morgan Stanley Research.
USA Inc. | Income Statement Drilldown 187
1
Entitlement Spending
Medicaid (-$273B Net Loss*)
Medicare (-$272B Net Loss*1)
Unemployment Benefits (-$115B Net Loss*)
Social Security (-$75B Net Loss*1)
Entitlement Spending
Medicaid (-$273B Net Loss*)
Medicare (-$272B Net Loss*1)
Unemployment Benefits (-$115B Net Loss*)
Social Security (-$75B Net Loss*1)
2
Rising Debt Level & Interest Payments
Debt Level ($9T Outstanding)
Effective Interest Rates (2.2%)
Debt Composition
Rising Debt Level & Interest Payments
Debt Level ($9T Outstanding)
Effective Interest Rates (2.2%)
Debt Composition
3
Periodic Large One-Time Charges
TARP ($26B Net Profit*2)
Fannie Mae / Freddie Mac (-$41B Net Loss*)
ARRA (-$137B Net Loss*)
Periodic Large One-Time Charges
TARP ($26B Net Profit*2)
Fannie Mae / Freddie Mac (-$41B Net Loss*)
ARRA (-$137B Net Loss*)
KP
CB
www.kpcb.com
Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA is American Recovery & Reinvestment Act programs.
USA Inc. | Income Statement Drilldown 188
CB
www.kpcb.com
Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA is American Recovery & Reinvestment Act programs.
USA Inc. | Income Statement Drilldown 188
HOUSE_OVERSIGHT_020935
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