Goldman Sachs Analyst’s Unsettling Conclusion About This ‘Scary’ Chart

When the VIX — an “index of volatility” in the S&P 500 stocks — hits “levels in the high-twenties to low-thirties” for extended periods of time, it’s usually an indicator that the U.S. economy is headed for a recession, according to a Goldman Sachs analyst.

Goldman Sachs released the graph below to put this issue into perspective — and as you can see, the index is currently at “scary” levels.

Goldman Sachs/Business Insider

“VIX levels go back to January 1990. Since that time there have been three recessions. Average VIX levels in the first two recessions (1990-1991, 2001) were 25 and 26 respectively,” Goldman Sachs analyst Krag Gregory said. “The worst of the worst was of course the Great Financial Crisis. Average VIX levels in the 2008-2009 recession were 34.”

After a dramatic spike during last week’s turbulent period, the VIX landed at 26 at the end of the week.

More insight from Business Insider:

Volatility in stock trading is not, on its own, an indicator of a decline in economic activity. But it does usually indicate that investors are nervous and twitchy about the way things are going, and thus trading their shares more frequently. That scenario often occurs right before the economy takes a nosedive.

At the end of last week, the VIX stood at 26, even though Q2 GDP for the US was a healthy 3.7% and, and similarly robust levels of GDP growth are currently being seen in the major UK and European countries. The chart is doubtless driven by knock-on effects from the massive sell-off in China stocks. Those stocks are down because a lot ofanalysts doubt that Chinese economic growth is as strong as the government says it is. With the Chinese economic engine slowing down, the fear is that it might hurt growth worldwide.

In turn, the Chinese sell-off triggered a rollercoaster collapse-and-rally last week in the S&P 500.

Liquidity drought could spark market bloodbath, warns IMF

Evaporating liquidity and higher US interest rates will cause huge market swings with potentially catastrophic consequences, Institute of International Finance warns

investors face a “painful” adjustment in a world of evaporating liquidity and higher US interest rates that will trigger huge market swings with potentially catastrophic consequences, the Institute of International Finance has warned.

Timothy Adams, the chief executive of the IIF, which represents the world’s biggest banks, described liquidity as the “top issue” at high level meetings of central bankers, chief executives and other financial institutions.

He warned that the raft of regulation introduced in the wake of the 2008 crisis could potentially cause market gyrations larger than last October’s “flash crash” in US Treasuries.

While Mr Adams supports tougher rules that have made the banks more resilient, he said a complex web of regulatory reform may have left banks less able to respond to the next crisis.

“There’s just less capacity for making markets,” he said. “Officials will say: we expect some volatility and this was part of this broader scheme of regulatory reform. But for the private sector there is this issue of: is the total effect of all of these various regulatory changes likely to produce outcomes larger than each individual regulatory reform and its consequences?

"The cumulative unintended could end up being much larger than the one-off intended - we just don’t know.”



Mr Adams said a complex web of regulatory reform may have left banks less able to respond to the next crisis (Photo: AFP)

Market liquidity, or the ease with which an investor can quickly buy or sell a security without moving its price, has evolved since the financial crisis. Investment banks, which traditionally supported liquidity in times of stress, have been shrinking their activities.

Corporate bond inventories have fallen by 75pc in the US and 50pc in Europe since 2007, according to IIF data. While much of this has been driven by banks unwinding large credit books, regulation has also discouraged them from holding large quantities of bonds that could help cushion violent swings in prices.

Mr Adams said a “dramatic revolution” of the players and risks of market making had also pushed risk “out into the shadows” of non-bank lending.

“We’ve rewired and re-engineered the global financial regulatory system and as a result we’re having profound impacts on institutional arrangements. At the same time we’ve had this rapid change in benchmark prices such as a 50pc drop in the price of oil, a rapid change in the dollar and other exchange rates and another drop in commodity prices,” he said.

“Once you bring the rapid change in major benchmark prices and a change in the architecture of the global financial system together, you could end up with outcomes that are pretty painful, and certainly unknowable.”

Mr Adams warned that the US Federal Reserve’s first interest rate rise in almost a decade would also cause disruption, and that the “the most transparent and telegraphed move in monetary history” was unlikely to prevent some dollar denominated debts from “blowing up” in emerging markets.

“I still have scars from 1994 after the economic downturn and the Fed first hiked. So it will be the most transparent and telegraphed move in monetary history, but once you start that cycle, it will certainly be disruptive.”

Mr Adams said developing economies which had built up large debts were most at risk of capital flight. “Emerging markets that have poor fundamentals, poor policy regimes and have over borrowed could see very volatile times going forward. Now is the time to put in place good regimes and buffers against potential downside risks because the business cycle hasn’t gone away.

“I worry because you have a lot of countries where you’ve seen a tremendous increase in corporate dollar denominated debt – so you’ve got a foreign exchange risk, but you’ve also got a credit risk. The question is: is some of that debt going to blow up, and then is there a sovereign balance sheet behind it? Those countries are going to feel strained.”



Credit to non-bank borrowers outside the United States has grown to $9 trillion, from $6 trillion since the financial crisis, according to the Bank for International Settlements (BIS). IIF data show emerging market dollar denominated debt has more than doubled to $2.6 trillion in a decade.

The BIS measure, which includes lending through banks registered in other jurisdictions, shows the figure is closer to $4.5 trillion today, leaving the world more sensitive to changes in interest rates by the Federal Reserve.

Meanwhile, global bond markets have grown from $30 trillion in 2000 to almost $90 trillion. However, the IIF has highlighted that trading volumes in US bond markets have fallen by 20pc compared with 2005.

Jamie Dimon, the chief executive of JP Morgan, warned in April that tougher bank regulation meant the next financial crisis would trigger more market volatility, as capital rules made it too costly for banks hold large stocks of securities to trade.

He said discord in the US Treasury and currency markets were a "warning shot across the bow", anticipating the turbulence during the next crash.

Mr Adams agreed that the sharp swing seen in US Treasuries last October was likely to be repeated.

"Personally I’m more focussed on the future because a lot of these regulatory changes haven’t yet been fully implemented, and some of them are still being debated – capital charges with respect to instruments on the trading book and the implementation of TLAC [total loss-absorbing capacity].


The "flash crash" in US Treasuries, captured by the International Monetary Fund. Jamie Dimon, the chief executive of JP Morgan, said the move of 37 basis points on October 15 was “an event that is supposed to happen only once in every 3 billion years or so” (Source: IMF)

"There are some concerns that a couple of events that we have seen is function of these regulatory changes, that may or may not be the case, but watching over the next year or two, and will we have similar events [to the flash crash] – if not larger - that may then warrant further investigation and looking at the cumulative effect of these regulatory changes.

Dame Clara Furse, an external member of the Bank of England's Financial Policy Committee (FPC), which is in charge of financial stability, said in February that liquidity in some markets had "become more fragile", which could result in "unforeseen consequences" for markets.

The Bank, led by Governor Mark Carney, will work with market participants and industry bodies such as the IIF to assess whether asset managers could cope with a rapid change in market conditions.

Mr Adams said policymakers were now facing the challenge of navigating the new financial order.

"I grew up in the 1970s and 80s when it was all about trying to get inflation down, you had a steep yield curve and it just feels like we’re in a very different and foreign place," he said. "At the same time we’re re-engineering the financial architecture, so we just don’t know what the linkages are.

"As you turn the dials of policy, you don’t know how much to turn it in order to get a certain amount of impact, so you’re making it up as you go along, and that’s a bit frightening if you’re in a position of accountability.

In terms of volatility, officials will say they want a two-way market. They argue that there's been too much complacency. But it’s like saying, I want to get on a rollercoaster because I want to have fun. Well you'd better make sure you’re ready and you’re strapped in and this is a rollercoaster that you understand."

Power Outage: What to Do When the Power Goes Out

Ever experienced a power outage?

Want to know how to prepare, and what to do when the power goes out?

You’re happily enjoying your favorite TV program when suddenly the electrical power goes out. You should take immediate action. But what should you do?

Electrical power is an energy often taken for granted. When the lights, television, heating or air conditioning go off, most people just wait for power to come back on. They don’t realize it could be out for hours or days, and there’s potential damage when it is restored. Most people take no action.

When electricity goes out, all running motors spin down to a stop. Refrigerant stops being pumped through your air conditioning unit. Cool air stops blowing through your home’s ventilation outlets. For heating, there’s no power to operate the fan that blows warm air out the vents. Appliances that turn on according to set conditions can’t react. Water stops being available to your ice maker and refrigerator water spout. Computers shift to battery power. Clocks that aren’t backed up by batteries freeze in time. Security systems stop protective monitoring.  And your whole world goes into silent shut down.

According to recent statistics, the average power outage last 4.5 hours. If it lasts longer than one day, most people become restless and worried. If it lasts more than three days, your lifestyle changes significantly—20% of power outages worldwide meet this criteria.

Here’s what you should do the moment power goes out:

1. Check with family and friends to see if they or others in your neighborhood have also lost power. Try texting since this uses less bandwidth and has a good chance of getting through.

Image via

2. Write the time on a pad of paper. You’ll want to monitor how long frozen or refrigerated food stays safe.

Image via

3. Turn off all motors that were running at the time.

You want to ensure everyone is safe when power is restored. A quick unexpected start of a motor that was left on or plugged into a socket could become a safety hazard. The power surge could also damage the motor. If you can’t easily get to appliance plug sockets, turn the refrigerator and freezer settings to the warmest or off condition. Then keep their doors closed.

Image via

4. If you have a sump pump, periodically check it to confirm no flooding is occurring in your basement or crawl space.

Image via

5. Turn off and unplug all appliances, televisions, entertainment devices, and operating equipment.

Leave a single light switch on to show when power is restored. Set out flashlights for use as needed.

Image via

6. Shut and lock all windows and doors and get into comfortable clothes.

You want to use natural ventilation and retain comfortable room temperatures as long as possible. Consider shutting doors to unused rooms.

Image via

7. In addition, if it’s nighttime, and you live in an area where illegals, drifters, or homeless are known to frequent, keep your home and possessions safe. Don’t tempt anyone to steal from you.

Image via

8. Get prepared to activate your backup electrical power and lighting systems. You did prepare didn’t you?

Image via

9. Fill all the clean containers you can find with fresh water—including the bathtub. Know how much bottled water you have and begin a rationing regimen. And don’t forget to take care of your animals.

Image via

10. Immediately initiate refrigerator and freezer food conservation procedures.

Don’t open their doors unless absolutely necessary. And decide what you’ll take out in advance. Keep the cold where it belongs. A packed freezer can keep food frozen for up to 48 hours. A packed refrigerator can keep food cold for up to 24 hours. Consider using a picnic cooler with frozen freezer bags or bags of ice or dry ice to keep food cold or frozen. Use canned or freeze-dried foods to avoid opening the freezer. If food in your freezer thaws, it becomes refrigerator quality until its temperature increases to 40° F (4° C). At this point, use it or cook it. If power comes back on and ice crystals are still visible on thawed food that has reached 40° F, you can safely re-freeze this. Any meat, poultry, fish, eggs, milk, or leftovers that have been warmer than 40° F for over two hours should be thrown out. A list of food storage times can be found at http://www.foodsafety.gov/keep/charts/refridg_food.html. Also note which foods can be safely kept at room temperature for a few days.

Image via

11. Continue cooking any hot meals in process on your BBQ outside.

Maintain hot cooked food at 140° F or higher until eaten. You can use a meat thermometer to measure temperature.

Image via

12. Begin listening to your portable battery-operated emergency radio.

Image via

Hand-crank capability is good because this won’t discharge your normal batteries and a 60-count crank charge can keep the radio going for over 30 minutes. Every community has an emergency broadcast station. Learn its frequency and then tune your radio to it and monitor the power out repair process and weather conditions.

13. When electrical power is restored, wait a minute or two and then re-energize appliances carefully and slowly to minimize surge.

Start with the freezer and refrigerator at their warmest setting and then slowly turning their temperature settings down. This should get things going without surge issues.

Image via

14. Contact family and friends to let them know your power is back on.

Image via

Then continue a normal lifestyle. If you’ve prepared, you can comfortably endure a power outage. You may even enjoy the slower pace while power is out.

How to Start a Fire With a 9V Battery

The ability to start a fire and keep it going is one of the most critical skills for a survivalist. Fire is crucial for cooking, light, and keeping warm when SHTF.

But starting a fire in the wild can be difficult. I think we’ve all had those moments of frustration when we just couldn’t get the fire to light and stay lit.

Check out this video from Survival Life’s own “Above Average” Joe for some fire starting tips that will ensure you’ll be able to start a fire successfully every time.

Doomsday clock for global market crash strikes one minute to midnight as central banks lose control

China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations.

When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal. 

Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations. 

The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse. 

1 - China slowdown 

China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets. 

The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker. 

The People’s Bank of China has pursued several measures to boost the flagging economy. The rate of borrowing has been slashed during the past 12 months from 6pc to 4.85pc. Opting to devalue the currency was a last resort and signalled the great era of Chinese growth is rapidly approaching its endgame. 

Data for exports showed an 8.9pc slump in July from the same period a year before. Analysts expected exports to fall only 0.3pc, so this was a huge miss. 

The Chinese housing market is also in a perilous state. House prices have fallen sharply after decades of steady growth. For the millions who stored their wealth in property, it makes for unsettling times. 

2 - Commodity collapse 

The China slowdown has sent shock waves through commodity markets. The Bloomberg Global Commodity index, which tracks the prices of 22 commodity prices, fell to levels last seen at the beginning of this century. 

The oil price is the purest barometer of world growth as it is the fuel that drives nearly all industry and production around the globe. 

Brent crude, the global benchmark for oil, has begun falling once again after a brief rally earlier in the year. It is now hovering above multi-year lows at about $50 per barrel. 

Iron ore is an essential raw material needed to feed China’s steel mills, and as such is a good gauge of the construction boom. 

The benchmark iron ore price has fallen to $56 per tonne, less than half its $140 per tonne level in January 2014. 

3 - Resource sector credit crisis 

Billions of dollars in loans were raised on global capital markets to fund new mines and oil exploration that was only ever profitable at previous elevated prices. 

With oil and metals prices having collapsed, many of these projects are now loss-making. The loans raised to back the projects are now under water and investors may never see any returns. 

Nowhere has this been felt more acutely than shale oil and gas drilling in the US. Tumbling oil prices have squeezed the finances of US drillers. Two of the biggest issuers of junk bonds in the past five years, Chesapeake and California Resources, have seen the value of their bonds tumble as panic grips capital markets. 

As more debt needs refinancing in future years, there is a risk the contagion will spread rapidly. 

4 - Dominoes begin to fall 

The great props to the world economy are now beginning to fall. China is going into reverse. And the emerging markets that consumed so many of our products are crippled by currency devaluation. The famed Brics of Brazil, Russia, India, China and South Africa, to whom the West was supposed to pass on the torch of economic growth, are in varying states of disarray. 

The central banks are rapidly losing control. The Chinese stock market has already crashed and disaster was only averted by the government buying billions of shares. Stock markets in Greece are in turmoil as the economy grinds to a halt and the country flirts with ejection from the eurozone. 

Earlier this year, investors flocked to the safe-haven currency of the Swiss franc but as a €1.1 trillion quantitative easing programme devalued the euro, the Swiss central bank was forced to abandon its four-year peg to the euro. 

5 - Credit markets roll over 

As central banks run out of silver bullets then, credit markets are desperately seeking to reprice risk. The London Interbank Offered Rate (Libor), a guide to how worried UK banks are about lending to each other, has been steadily rising during the past 12 months. Part of this process is a healthy return to normal pricing of risk after six years of extraordinary monetary stimulus. However, as the essential transmission systems of lending between banks begin to take the strain, it is quite possible that six years of reliance on central banks for funds has left the credit system unable to cope. 

Credit investors are often far better at pricing risk than optimistic equity investors. In the US while the S&P 500 (orange line) continues to soar, the high yield debt market has already begun to fall sharply (white line). 

6 - Interest rate shock 

Interest rates have been held at emergency lows in the UK and US for around six years. The US is expected to move first, with rates starting to rise from today’s 0pc-0.25pc around the end of the year. Investors have already starting buying dollars in anticipation of a strengthening US currency. UK rate rises are expected to follow shortly after. 

7 - Bull market third longest on record 

The UK stock market is in its 77th month of a bull market, which began in March 2009. On only two other occasions in history has the market risen for longer. One is in the lead-up to the Great Crash in 1929 and the other before the bursting of the dotcom bubble in the early 2000s. 

UK markets have been a beneficiary of the huge balance-sheet expansion in the US. US monetary base, a measure of notes and coins in circulation plus reserves held at the central bank, has more than quadrupled from around $800m to more than $4 trillion since 2008. The stock market has been a direct beneficiary of this money and will struggle now that QE3 has ended. 

8 - Overvalued US market 

In the US, Professor Robert Shiller’s cyclically adjusted price earnings ratio – or Shiller CAPE – for the S&P 500 stands at 27.2, some 64pc above its historic average of 16.6. On only three occasions since 1882 has it been higher – in 1929, 2000 and 2007. 

WITH CHINA CRASH, SAUDI ARABIA HEMORRHAGING CASH

With China’s economic crash driving U.S. oil prices down to $42 a barrel, Saudi Arabia is the oil-exporting nation suffering the worst economic decline.

The 15,000 members of the six branches of the Saudi royal family have been buying national support with massive social welfare spending. But with the oil price plunging by 60 percent, causing a massive budget deficit, the kingdom’s foreign exchange reserves could be wiped out in four years.

Most analysts have focused on Russia as suffering the worst impacts of the oil price crash. The value of Russia’s oil & gas production is approximately $350 billion per year; it accounts for 20 percent of Russia’s GDP, and equals two thirds of all exports. But even at current prices, Russia will still achieve a trade surplus of about three percent of GDP. As an oil exporter, Russia’s is uniquely self-sufficient and a military exporter.

Saudi Arabia’s oil and gas sector makes up 45 percent of GDP, funds about 80 of the government’s budget, and accounts for 90 percent of exports. Saudi Arabia’s 2014 budget spending was $294.3 billion, with a $14.4 billion deficit. The 2015 Saudi budget was cut down to $229.3 billion in spending, with an expected $38.6 billion deficit.

But in June with the average price of oil estimated to be $60 a barrel for the year, the IMF estimated that Saudi Arabia’s $745 billion GDP would fall to $649 billion and the nation would post a budget deficit of 20 percent of GDP, or $130 billion.

With international oil prices at $49 a barrel, the Saudi deficit will jump to about $163 billion and Saudi GDP will plunge by another $80 billion, to $570 billion.

The IMF also did not make any mention of the added cost of Saudi Arabia’s air campaign against the Islamic State in Syria, and its war and invasion of Yemen.

Unlike the Russians’ legendary ability to hunker down and rely on their own self sufficiency in food and production,Saudi Arabia imports 70 percent of its food and does not produce military hardware, cars, refrigerators, civil airplanes, ships, or most manufactured consumer and industrial goods. Saudi Arabia’s only real domestic industry is petrochemicals.

The Saudi Arabian kingdom is in no position to implement severe austerity measures, like Russia. The vast majority of Saudis enjoy their standard of living due to government handouts.

Saudi citizens tend to lack employable skills and are culturally not inclined to work. Of the 30 million residents, only 5.5 million work and 3 million work directly for the government. The small private sector tends to employ foreigners.

When 80 year old Salmanbin Abdulaziz Al Saud ascended to the throne in February, he distributed $32 billion to the people to cement his popular support.

Saudi Arabia was a prime beneficiary from the 1998 to 2013 “supercycle” that saw commodity prices experience double-digit after-inflation growth. The price of oil rose 1,062 percent. But the price of copper rose 487 percent and corn rose 240 percent, as growing emerging market demand, led by China, drove up prices across various commodity markets, according to PIMCO.

Since China’s economy faltered last year, commodity prices have crumbled. But despite those falling prices, oil production and commodity supply is still expanding.

As a result, Saudi Arabia’s foreign exchange peaked in August 2014 at $750 billion, and fell $91 billion to $659 billion by June 2015, according to the IMF.

And that was before China’s $3 trillion stock crash.

Benefits of Food Storage During Economic Collapse

Chances are high that you have come across a few stories from the media regarding the increasing risk of economic collapse, or perhaps you have spotted several situations of rioting in Baltimore or Ferguson. You have probably witnessed photographs of shops boarding up their doors and long, empty food store shelves that were a result of looting. You may ask, however, “What is my family to do during such uncontrollable events?”.

Although a possible economic collapse or state of civil unrest is out of your control, (96% of Americans expect more civil unrest in US cities this summer!*) It is very possible to prepare yourself and your family for such scenarios. One of the most important things that can be secured to greatly increase the chances of making it through an economic shutdown of your community, state or country, or a sudden state of emergency from riots erupting, is a substantial food storage supply.

When faced with the reality of sudden travel restrictions, whether it be cross-country or as close as your neighborhood supermarket, the importance of securing necessities for your family becomes much more apparent. You may have created a supply of items that will help keep your family safe when things outside the home are getting out of hand, however, food is something that no one can go without. Nearby stores will most likely not have the option to remain open to serve customers during a riot in the community, and if economic collapse were to strike, your community’s infrastructure would be gravely affected as well.

An adequate food storage supply for your family can help you weather the storm of an economic collapse as you start to make adaptations to your suddenly different lifestyle, or possibly move to another more promising location. It can also increase the safety of your family while your surrounding environment grows hostile, providing you with resources accessible from within the home.

Take a look at our extensive selection of freeze-dried food storage foods that will last you up to 25 years, are highly portable and convenient, and can be the perfect choice for your family to utilize when faced with the hardships of an economic collapse, or outbreak of rioting in the community. Visit NuHarvestFoods.com for more information about our high quality long term storage food options and take a look at the following links for more information about how to better prepare for such pressing scenarios.

The Missing Item for Your
Personal Medical Preparedness

Introducing the SayAhh! Sore Throat Home Exam Kit

Everyone eventually will get a sore throat….

The US will have up to one billion colds this year, most accompanied by a sore throat. Everyone is sooner or later called upon to observe their child, teenager, or adult’s sore throat for the purpose of identifying and evaluating possible illness and reporting the symptoms to their healthcare provider. Without medical training, they are almost certain either to miss the indications of actual disease, or to mistake a normal throat for one in the grip of a raging virus.

SayAhh! offers a better way….

Getting a good view of a sore throat can be difficult. Not only can it be hard to get the throat open enough for a clear view but many people will also have a gag reflex with a typical depressor. SayAhh! changes all that. Unlike ordinary tongue depressors, the patented SayAhh! oral retractor cups and relaxes the tongue, while its unique retraction ridges help inhibit the gag reflex.

A complete Health Management System….

SayAhh! is a three-part health management system. Part one, the device, provides the user greater ease and accuracy of observation. Part two, the illustrated medical grade chart included as part of the instructions, provides clear pictures and descriptions of six common throat ailments – a solid basis for comparison to a normal throat. Part three is the website – SayAhh.com which contains in-depth information and photographic references for all six conditions, as well as answers to FAQs, general notes from doctors, and more. Access to all this is also available through the Apple Store “SayAhh! Exam Guide“, making SayAhh! an integral part of your home medical preparedness.

Observe. Compare. Report.

The SayAhh! sore throat home exam kit offers an easy solution. Now anyone can Observe someone’s throat easily and accurately with the SayAhh! oral retractor. They can Compare what they see to the illustrated reference chart or website or App photo gallery. Finally they can Report their observations to their physician with confidence.

The SayAhh! Sore Throat Home Examination Kit includes the following:

1. SayAhh! Oral Retractor
2. SayAhh! Home Exam Illustrated Sore Throat Chart
3. Flashlight
4. Unlimited Access to SayAhh.com
5. Unlimited 24/7 Access to the “SayAhh! Exam Guide” App on the Apple Store

One click away from unparalleled information at your fingertips

The SayAhh! Exam Guide App, once downloaded to your phone, can be used anytime, anywhere, and on the go without internet connectivity.

OVER 1,200 CITY WORKERS IN BALTIMORE MAKE SIX-FIGURE SALARIES - Nothing wrong here

A review of city salary data shows that over 1,200 city workers in Baltimore are making $100,000 or more a year in salary and overtime pay.

A search of a database of the salaries of the city’s 14,000 workers shows that over 1,200 workers in city services and the police and fire departments make two and, in some cases, three or more times more than the average salary of citizens of the city.

According to U.S. Census data, the median household income in Baltimore is $41,385. The census also reports that 23.8 percent of the city’s residents are below the poverty level.

Yet, over 1,200 city workers are making over $100,000 yearly. Some, like Lt. Stephen C. Nalewakjo Jr. of the city’s police department, made even more. Nalewakjo made $211,000 in the fiscal year of 2015. It appears the mayor’s office pays well too. Kaliope Parthemos, Mayor Stephanie Rawlings-Blake’s chief of staff, made $183,000.