Thursday, March 15, 2012

Friday March 16 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

The South Florida house that became a fraud machine - (www.miamiherald.com) If South Florida was the capital of mortgage fraud, Victor Wolf’s home was arguably the epicenter, churning out millions in ill-gotten loot. For fugitives Victor and Natalia Wolf, the police poster tells the story: hundreds of victims from land fraud swindles across Florida totaling millions in losses. But the couple’s lasting legacy may be found in their most prized possession: their home. In their final desperate days, the Wolfs managed to get a spate of sham mortgages slapped on their North Miami Beach house — creating 21 fake transactions — to squeeze millions from lenders before vanishing. The wheeling and dealing — phony deeds, forged signatures and a straw buyer — has left investors fighting over who owns the stately waterfront house at the center of the couple’s real-estate empire.

Zillow and Trulia Face Backlash from Realtors - (www.thefiscaltimes.com) It used to be a given for anyone selling their house – a realtor would put their listing on national real estate aggregator websites like Zillow, Trulia, and Realtor.com to maximize exposure and sell homes quickly. But that could be changing fast as the two entities face off. Since 2005 or so, realtors have shared data about homes they have for sale with those national sites, which have millions of visitors (Zillow, for example, had 32 million last month). But even though the sites have grown, sales haven't, in the distressed housing market, and some agents believe the sites may not be helping. They accuse them of engaging in practices that give buyers inaccurate information that may hurt sales. Among their complaints are that the sites allow any agent, for a fee, to have their name and photo appear prominently beside homes listed for sale in a given region, even if they aren’t the agent who represents the seller. In reality, the agent in the photo may know little about the property or the neighborhood where the house is located, frustrating customers’ efforts to get accurate answers, according to a report last year by real estate consulting firm Clareity.

Europe banks hungry for second helpings - (www.ft.com) It has been likened to a sugar rush for markets, especially for government bonds issued by heavily indebted eurozone nations. But will the European Central Bank’s second offer of cheap three-year loans to banks on Wednesday inject new life into the rally? The answer to one of the most important questions for markets is expected by analysts shortly after 10am London time on Wednesday. The reaction will be closely watched. Mario Draghi’s ECB has been credited with the improved sentiment this year, not just in eurozone sovereign debt but in other risky assets too.

A U.S. Boon in Low-Cost Borrowing - (www.nytimes.com) These are the best of times for the world’s most ravenous borrower, the United States of America. A combination of unusual and unsustainable forces has pushed the cost of borrowing as low as it has ever been, so low that many investors effectively are paying to lend money to the government. Investors buying five-year federal debt are accepting such low interest rates that inflation is on pace to reduce the value of their investments by more than 1 percent each year. Yet demand for United States Treasuries remains much greater than the supply. The glut of cheap money has allowed the government to keep its annual deficits much smaller than it had expected, holding down the growth of the federal debt. The Treasury Department, seeking to milk the moment, may start issuing debt with negative interest rates, making investors pay for the privilege of lending money to the government.

Former Lehman Worker Says Long-Term Unemployment Is 'Demeaning' - (www.businessinsider.com) "To be at this point and need to be dependent on the government now, it's not the American dream." At one time, it was easy for Pamela Vernocchi to get a job — she's worked at several large financial firms on Wall Street — until she got laid-off in 2008. Since then Vernocchi has been on 30 job interviews and submitted around 4,000 resumes. She's still unemployed. "Back in the day, I had to turn down jobs," she said. "Things have changed. So many people are applying that they can be particular now."

OTHER STORIES:

ECB Special Lender Status Threatens Backlash - (www.bloomberg.com)

Italy banks issue 40 bln euros of state-backed bonds before ECB 3-yr op - (www.reuters.com)

Euro leaders delay decision on bigger bailout fund - (finance.yahoo.com)

ECB temporarily suspends Greek bonds as collateral - (www.reuters.com)

U.S. Bank Lending Increased in Late 2011 - (www.online.wsj.com)

ECB liquidity plan aids rush for EU bonds - (www.ft.com)

Rajoy Faces Tougher Budget Task This Year After Spain’s 2011 Deficit Miss - (www.bloomberg.com)

Spain under pressure to enact more austerity - (finance.yahoo.com)

European Economic Confidence Beats Estimates - (www.bloomberg.com)

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