Tuesday, January 24, 2012

Wednesday January 25 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

Plans for high-speed rail are slowing down - (www.washingtonpost.com) Critics began panning the first leg of California’s futuristic high-speed rail network as a “train to nowhere” soon after officials decided to build it not in the major population centers of Los Angeles or San Francisco, but through the state’s Central Valley farming belt. Since then, things have only gotten worse. Spiraling cost estimates and eroding political and public support now threaten a project crucial to a 21st-century vision of train travel that President Obama promised would transform U.S. transportation much as interstate highways did more than a half-century ago. A national high-speed rail network would not only support tens of thousands of construction and manufacturing jobs, but it would get Americans out of their cars, revitalize struggling downtowns, and spare the environment millions of tons of carbon emissions and travelers untold hours wasted in traffic or in airport terminals waiting out delays.

A Look At How Health Reform Is Driving Doctors Out Of Business - (www.businessinsider.com) American doctors are facing a financial crisis. According to Parija Kavilanz of CNN Money, physicians blame "shrinking insurance reimbursements, changing regulations, and rising business and drug costs" for their recent financial troubles. As private practices become victims of health care reform and Medicare and Medicaid cuts, many doctors are being forced to shut their doors.

Record ECB deposits show stress in banking system - (finance.yahoo.com) Banks deposited a record euro493.3 billion ($630 billion) at the European Central Bank on Friday night in a sign the eurozone banks remain concerned over a government debt crisis. The overnight figures released Monday exceed the previous record of euro490 billion deposited on Thursday. Banks are awash with ready cash thanks to euro489 billion in low interest crisis loans handed out to 523 banks by the ECB in late December. But many are afraid to lend the money to another bank for fear they won't get paid back. Banks face potential losses on government bonds issued by countries with heavy debt levels. Some banks are also believed to be hoarding the ECB loan money to pay off their own bonds maturing this year because they can't issue new bonds.

In Silicon Valley, the Ripe Scent of New Money - (www.nytimes.com) Sam Odio expected a few congratulatory e-mails when he sold Divvyshot, his online photo-sharing service, to Facebook last April for millions of dollars. Instead, his in-box was flooded with pitches from Goldman Sachs, Morgan Stanley and other Wall Street firms looking to manage his newfound wealth. Goldman has the inside track, having courted him with an exclusive factory tour of Tesla, the electric sports-car maker, and tickets to a screening of the final Harry Potter film. “They sure know the way to a geek’s heart,” said Mr. Odio, 27. Wall Street, as always, is going where the money is — and right now that is Silicon Valley. The latest Internet boom means there are more newly minted millionaires, and even billionaires, than at any time since the technology bubble a decade ago. Many are brilliant young entrepreneurs and computer engineers. But for all their knowledge, the technology executives, many of whom are fresh out of college, are relatively clueless when it comes to estate planning. “Betting the ranch on building a widget for the Facebook platform is very different than managing a long-term nest egg,” said Jay Backstrand, a vice president atJPMorgan Chase’s private bank.

Greek creditors bridle at demands, default fears grow - (www.reuters.com) Greece's private sector creditors warned on Monday that the Athens government must urgently break a deadlock in debt swap talks triggered by "unreasonable" demands from international lenders if is to avoid a disorderly default. Barely a month after an injection of bailout funds helped to avert bankruptcy, Greece is back at the centre of the euro zone crisis as fears of a default and a subsequent euro zone exit overshadow a mass credit downgrade of euro zone countries. Cash-strapped Athens needs a deal with the private sector within days to avoid going bankrupt when 14.5 billion euros of bond redemptions fall due in late March.

OTHER STORIES:

Euro Leaders Race to Salvage Rescue Plans - (www.bloomberg.com)

Euro zone faces lower EFSF lending power or higher guarantees - (www.reuters.com)

Nowotny Says S&P Favors Fed’s Bond Buying Over ECB’s ‘Restrictive’ Policy- (www.bloomberg.com)

Wary banks boost ECB deposits; reserve change due - (www.reuters.com)

Markets are calm _ too calm. Why pros are spooked - (finance.yahoo.com)

The Risks in ECB's Crisis Moves - (online.wsj.com)

Analysis: China must reform to beat shadow lending, loan sharks - (www.reuters.com)

As Reforms Flag in Greece, Europe Aims to Limit Damage - (www.nytimes.com)

Inefficient Economies Seen as Drag on Europe - (www.nytimes.com)

Bank results threaten to dash US hopes - (www.ft.com)

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