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...Alpha and five other platforms, thereby temporarily cutting British North Sea oil production by 12.9%. The losses in export earnings and tax revenues from Piper Alpha alone were expected to cost the British government at least $1.2 billion a year, while the losses to insurance companies were likely to exceed $1 billion. Occidental Chairman Armand Hammer promised a contribution of $1.7 million to a Piper Alpha disaster fund and an indemnity of some $170,000 to the family of each victim...

Author: /time Magazine | Title: Disaster Screaming Like a Banshee | 7/18/1988 | See Source »

...time the problem is not too little money but too much. Thanks to a series of increases in payroll taxes that began in 1984, the retirement trust fund currently takes in $109 million more each day than it pays out in benefits. Federal officials expect the accumulated surplus to exceed $100 billion by December and, in the next 40 years, to mushroom to $12 trillion. Every penny will be needed to pay for the future retirement of today's 24- to 42-year-olds, the budget-busting baby boomers. But as the stockpile grows, so does the urge to raid...

Author: /time Magazine | Title: The $12 Trillion Temptation | 7/4/1988 | See Source »

Other experts worry about just the opposite possibility: that the Social Security program will push the overall budget substantially into surplus. If Government revenues far exceed spending, less money will be available for businesses and consumers. That could produce a drag on the economy or even a recession. Already, says Robert DiClemente, a senior economist at Salomon Brothers, "many people are now paying higher ((Social Security and Medicare)) payroll taxes than income taxes." The thing to do, argues Robert Myers, chief actuary of the Social Security Administration from 1947 to 1970, is to cut the payroll tax so that...

Author: /time Magazine | Title: The $12 Trillion Temptation | 7/4/1988 | See Source »

Federal regulators said last week that liquidations will remain a last resort in resolving the industry's widespread insolvencies. Of 3,100 federally insured thrifts, some 200 are considered hopelessly insolvent. The FSLIC's liability for these S and Ls now significantly exceeds its assets on hand, so that the fund posted a deficit of $13.7 billion at the end of 1987, contrasted with $6.3 billion the previous year. But the FSLIC aims to narrow that gap over the next few years, relying on income from premiums and other sources. The FSLIC estimates that it will have $20 billion available...

Author: /time Magazine | Title: Too Far Gone To Bring Back | 6/20/1988 | See Source »

...FSLIC's total reserve has gone into deficit because its liabilities for insolvent institutions now exceed its assets on hand...

Author: /time Magazine | Title: Too Far Gone To Bring Back | 6/20/1988 | See Source »

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