Thursday, June 7, 2012

Friday June 8 Housing and Economic stories



TOP STORIES:

Vallejo, Calif., once bankrupt, is now a model for cities in an age of austerity - (www.washingtonpost.com) The first couple of years were ugly. After this working-class port city became the largest in America to declare bankruptcy in 2008, crime and prostitution surged as the police force was thinned by 40 percent. Firehouses were shuttered, and funding for libraries and senior centers was slashed. Foreclosures multiplied and home prices plummeted. But then this city of 116,000 began to reinvent itself. It started using technology to fill personnel gaps, rallying residents to volunteer to provide public services and offering local voters the chance to decide how money would be spent — in return for an increase in the sales tax. For the first time in five years, the city expects to have enough money to do such things as fill potholes, clear weeds, trim trees and repair tennis courts. The nation’s cities are weak links in the U.S. economy and, if they collapse in large numbers, it could knock the country’s recovery off course. Cuts at the federal level are being pushed down to the states, which in turn are passing the problems to their cities.

Rajoy Urges ECB Action To Reverse Surge In Spanish Bond Yields - (www.bloomberg.com) Spanish Prime Minister Mariano Rajoy called on the European Central Bank to act to bring down rising borrowing costs after Spanish bond yields approached the levels that pushed Greece, Ireland and Portugal into bailouts. “If public debt isn’t sustainable, we have a problem,” he said today after a meeting of European Union leaders in Brussels. “I insist it is up to the ECB to take this decision that it has already taken in the past.” Rajoy’s call for help from the Frankfurt-based ECB was his clearest yet. He has previously urged unspecified European authorities to help him battle Spain’s surging yields. The ECB helped ease yields in August when it began buying the country’s bonds and then lent euro-region banks 1 trillion euros ($1.3 trillion) for three years in December and February, some of which was recycled into public debt purchases.

HP to lay off 27,000, profit slides 31 percent - (www.reuters.com) Analysts said Hewlett Packard Co's plan to cut jobs was a step in the right direction but the PC maker will have to do more to regain investors' confidence. Shares of the world's No. 1 personal computer maker were up 6 percent at $22.26 in early trading on the New York Stock Exchange on Thursday. "While we certainly don't believe HP has resolved all their issues, we do see the company moving in the right direction," RBC Capital Markets LLC analyst Amit Daryanani wrote in a note to clients. The accelerating popularity of mobile computing devices such as Apple Inc's iPad has been eroding PC sales for years and a downturn in the European markets has just added to the pressure. Rival Dell gave a disappointing revenue forecast Earlier this week that spurred fears that global tech spending is weakening faster than anticipated.

Medical Costs Contribute to Credit Card Debt - (www.nytimes.com) Medical bills are a leading contributor to credit card debt, a new survey finds. Nearly half of low- and moderate-income households carry debt from out-of-pocket medical expenses on their credit cards, the survey found. The average amount of medical debt on credit cards was $1,678. Demos, a nonpartisan research organization, contracted with Knowledge Networks to conduct the survey in February and March to gauge the impact of the recession as well as of the Credit Card Accountability Responsibility and Disclosure Act of 2009. The survey, conducted online among participants selected by random sampling, included 997 adults who had carried credit card balances for at least three months. The margin of sampling error was four percentage points.

California downgrades loan owners, diverts bank extortion booty to others - (www.ochousingnews.com) Many loan owners made mortgage payments over the last few years when they would have benefited more from strategic default. Many of those loan owners were motivated by the false hope of a government bailout bringing principal reduction or other goodies. California led these sheeple down the path and garnered much public attention for the tough stance the Attorney General took in favor of loan owners. Everyone rejoiced. Loan owners could taste the debt relief. Kamala Harris stoked her political ambitions as a pandering lefty. The banks got relief from further lawsuits. There was only one problem. Governor Jerry Brown and others in the state legislature decided giving money to loan owners wasn’t the best use of taxpayer funds — thankfully. The State is diverting the extortion booty it garnered from the bank settlement to others leaving loan owners with nothing but their denial and false hope. Loan owners got screwed.




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