KeNosHousingPortal.blogspot.com
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Toll road operator files for Chapter 11 - (www.signonsandiego.com) What was heralded in late 2007 as the next big thing in regional commuting — a 10-mile, privately operated toll road in South County — may wind up testing the wisdom of public-private partnerships. In its court filing this week for Chapter 11 bankruptcy protection, the company that runs the South Bay Expressway cited the ripple effects of a rotten economy. It said the collapse in home prices and the spike in unemployment have hurt its fortunes since the road opened nearly three years ago. “What’s driving this is that we’ve been severely impacted by the recession,” said Greg Hulsizer, chief executive for South Bay Expressway Ltd. “We find ourselves in a position where in the not-too-distant future, we’re going to run out of financial reserves.” Hulsizer said his company intends to operate the tollway through bankruptcy reorganization and beyond, even though he doesn’t expect the venture to turn a profit anytime soon. He hopes a judge will give the business some breathing room by allowing it to restructure its debts, perhaps by lengthening its loan-repayment schedule. “As a valued customer, you will see no change in service,” he promised drivers in an e-mail yesterday. “Your local toll road will still be here for you.” In a phone interview, however, Hulsizer said turning over operations to another private business or the company’s lenders may be an option, depending on the outcome of bankruptcy proceedings that could last a year or more.
German pensioners guilty of abducting financial adviser - (news.bbc.co.uk) On the Block writer Tracey Taylor has already shown you the Yerba Buena Center for the Arts' "Noe Valley Dream House," being raffled now for $150 a ticket-- and since the house is worth a purported $3 million, if you're feeling lucky, the raffle could appear pretty exciting. Or not. Several real estate blogs (such as Socket Site) have been debating the house's design merits as well as its actual value. One issue that keeps coming up: given that tax records show the home is less than 700 square feet, how can it possibly be worth 3 million? Plus, the home itself is a bit of a mystery: it sold for $335K in 1997, when it looked like this:
HAMP applicants who don't really need the money - (www.calculatedriskblog.com) To demonstrate this, applicants are required to submit recent paystubs and bank statements. The statements are to help further corroborate the income they report (lest they forget to include all of their paystubs) and also to demonstrate that their monthly expenses are as described on their application. Which is to say that they have already ‘cut back to the bone’ and STILL are unable to make ends meet. So how do these look in practice? The very first ‘HAMPlication’ that your correspondent pulled up recently showed a wanton disregard for minimizing spending. On the contrary, it looked like “cutting back” for this applicant does not involve such Draconian cuts as eliminating:
• visits to the tanning salon
• the nail spa
• some kind of gourmet produce market (have you seen the price of arugula?)
• various liquor stores
• A DirecTV bill that must involve some serious premium programming or pay-per-view events (or both?).
• And over $1,700 in retail purchases, including: Best Buy, Baby Gap, Brookstone, Old Navy, Bed, Bath & Beyond, Home Depot, Macy’s, Pac Sun, Urban Behavior, Sears, Staples, and Footlocker.
Why Fannie and Freddie Continue to Cost Taxpayers Billions - (www.huffpostfund.org) Of all the companies bailed out by the federal government, mortgage finance giants Fannie Mae and Freddie Mac are shaping up as the deepest money pits. A close look at their past and recent financial filings shows why their losses continue to mount. Fannie and Freddie effectively became wards of the government in 2008. The Obama administration had promised to reveal its plans for the agencies last month, but Washington’s focus on reforming the banking system pushed them to the bottom of the to-do list. Fannie and Freddie aren't mentioned in either the Senate or House financial regulatory reform bills….. Together the two firms have already tapped $125 billion from government lifelines and the Congressional Budget Office predicts they ultimately will drain $380 billion. That would far exceed the final tabs for rescuing the big banks, the automakers or even insurance behemoth American International Group (AIG).
4-Day School Weeks Might Be Coming In Illinois - (www.cbs2chicago.com) State House Has Passed Bill Allowing School Districts To Set Up Shorter Weeks; Mayor Daley Has Doubts. Add an entire school day to the chopping block. State lawmakers want to move financially struggling schools to four day weeks. They say it will save money, and it won't affect classroom time. The superintendent of one local school district believes the plan could work. CBS 2's Dorothy Tucker paid them a visit. "I think it's something we should take a look at," said Dr. Kamala Buckner, Superintendent of Thornton Township High Schools District 205. Kids would still have to complete the same number of hours per school year, so switching to four-day school weeks would mean longer school days or shorter summer vacations.
L.A. Unified pays teachers not to teach - (www.latimes.com) Every school day, Kim's shift begins at 7:50 a.m., with 30 minutes for lunch, and ends when the bell at his old campus rings at 3:20 p.m. He is to take off all breaks, school vacations and holidays, per a district agreement with the teacher's union. At no time is he to be given any work by the district or show up at school. He has never missed a paycheck. In the jargon of the school district, Kim is being "housed" while his fitness to teach is under review. A special education teacher, he was removed from Grant High School in Van Nuys and assigned to a district office in 2002 after the school board voted to fire him for allegedly harassing teenage students and colleagues. In the meantime, the district has spent more than $2 million on him in salary and legal costs. Last week, Kim was ordered to continue this daily routine at home. District officials said the offices for "housed" employees were becoming too crowded. About 160 teachers and other staff sit idly in buildings scattered around the sprawling district, waiting for allegations of misconduct to be resolved.
OTHER STORIES:
The Rising Cost of Public Higher Education - (www.phdcomics.com)
The Case for Ending the Mortgage Deduction - (www.nytimes.com)
Noe Valley "Dreamhouse": One raffle you might not want to win? - (www.sfgate.com)
Fannie, Freddie messy government tie tough to cut - (www.reuters.com)
Will Misrepresented Mortgage-Backed Bonds Come Home to Roost? - (www.seekingalpha.com)
Bernanke Wants to End Bank Reserve Requirements Completely: Does it Matter? - (Mish at globaleconomicanalysis.blogspot.com)
AIG Increases Pay for Most Top Managers Who Remained - (www.businessweek.com)
How Middle Class Evaporated in Last 40 Years - (www.mybudget360.com)
Global Housing Prices: More Room to Fall? - (www.imf.org)
Influx of listings set to cool Canadian housing market - (www.theglobeandmail.com)
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