Thursday, September 13, 2012

Friday September 14 Housing and Economic stories



TOP STORIES:

Greek PM says new austerity round will be the last  - (finance.yahoo.com) Greece's prime minister promised his austerity-weary countrymen on Thursday that new spending cuts planned for 2013-14 would be the last major austerity package, but insisted it was vital to remain in the euro. Antonis Samaras, who is struggling to get his uneasy coalition partners' full support for the €11.5 billion ($14.4 billion) in cutbacks, argued that economic reforms and privatizations would restore growth after four years of deep recession. "This is the last such package of spending cuts," Samaras told a meeting of his conservative party's officials. "The Greek economy can take no more."

JONATHAN MILLER: Don't Buy The Hype About A Housing Recovery - (www.businessinsider.com) "When you say 'recovery' you're implying that things are going to go up," Samuel continued. "In certain markets you might see that, but in some you won't." So what does the seasoned appraiser think consumers will see in the market over the next five years?  "A sideways orientation," he said. "For now, it may make lenders more comfortable and help turn prices around, but I guess I take offense to it because I think when people hear it, deep down they don't trust the message either. All it does is create more confusion." 

ECB bankers toil over bond-buying plan - (www.ft.com) When the world’s central bankers make their annual trip to Jackson Hole it often makes news. But seldom has a central banker’s non-attendance at the Federal Reserve Bank of Kansas City’s symposium grabbed so many headlines as ECB president Mario Draghi’s decision this week to pull out. Other members of the ECB’s executive board, made up of the central bank’s top six officials, have also cancelled their plans to travel to Wyoming. The board’s decision to remain in Frankfurt indicates much remains to be done before next Thursday’s meeting of the governing council, immediately after which the bank is expected to unveil the details of its revamped bond-buying programme.

September Offers 15 Days to Cement Crisis Solutions: Euro Credit - (www.bloomberg.com)  European policy makers end August with 15 days to justify bondholder optimism that they can deliver lasting solutions to the debt turmoil. September offers a microcosm of three years of crisis- fighting. The next two weeks may feature fresh anti-contagion measures from the European Central Bank, a possible aid request from Spain and insight into whether creditors will easeGreece’s bailout terms. German judges and Dutch voters also get to proclaim on the euro’s future. At stake is whether politicians and the ECB can extend a summertime shift in borrowing costs by convincing investors Spain and Italy are protected from the rot and the euro is secure. Since ECB President Mario Draghi’s July 26 vow to do “whatever it takes” to defend the currency, Spain’s 10-year bond yield has fallen about half a point to 6.52 percent, while that of Italy has declined by a quarter-point to 5.81 percent.

At pivotal moment, Bernanke low on economic ammo - (www.washingtonpost.com) This is not the situation Ben S. Bernanke wanted to be in. When he took the stage for his annual address in Jackson Hole, Wyo., four years ago, the Federal Reserve chairman had a broad arsenal of weapons that he would soon use to rescue the U.S. financial system from collapse. On Friday, he returns to the yearly economic conference still facing huge economic challenges, but now he’s far more constrained by both politics and limitations on what the Fed can do to help the economy. With his speech sandwiched between the national political conventions, there is more political pressure on Bernanke than perhaps ever before.




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