_{ECONOMIC NEWS}

Impending Bank Failures: What to Expect and How to Prepare

Economic experts are warning of an impending wave of regional bank failures that could devastate commercial real estate and alter the financial landscape. With rising interest rates and declining property values, small and midsize banks—particularly those heavily exposed to commercial real estate—are at the greatest risk. Predictions suggest 500 to 1,000 banks could fail between 2025 and 2026, leaving borrowers and investors scrambling for new lenders.

The collapse of small banks could result in higher loan costs, limited options for financing, and serious disruptions to the market. While bigger banks might step in, the real question is whether the Federal Deposit Insurance Corporation (FDIC) and other regulatory bodies can stop these failures from turning into a full-blown financial crisis. Read More.

_{FINANCIAL NEWS}

State Employee Retirement System Teeters on the Brink of a Cash Flow Crisis

Mississippi's Public Employee Retirement System (PERS) is heading toward a cash flow crisis, and the warning signs are getting harder to ignore. As the state fast-tracks a bill to slowly increase employer contribution rates, it’s clear that PERS is in trouble—currently only 60% funded, well below the 80% needed to be considered stable.

The system is paying out far more than it's bringing in, with retirements rising and fewer employees paying into the system. If the funding gap isn't closed, future benefits could be in jeopardy, and the burden to fix the problem will likely fall on taxpayers through increased contributions or state funding.

Experts warn this problem, while not imminent, could snowball in the coming decades if drastic action isn’t taken now. Cities may face tough choices: raising taxes, cutting jobs, or both. If this cash flow crisis isn’t handled, state retirees could face real consequences, and Mississippi's workforce may suffer even more. Read Now.