Monday, September 3, 2012

Tuesday September 4 Housing and Economic stories



TOP STORIES:

Bank of England deputy governor warned banks they could collapse 'before Christmas' - (www.telegraph.co.uk) Bank of England officials were so concerned about the potential for a financial crisis late last year they took the extra­ordinary step of warning the entire banking system could collapse “before Christmas”. Paul Tucker, the deputy governor of the Bank of England, told an October meeting of the chief executives of Britain’s largest banks that there was a serious chance none of their businesses would survive to the end of the year. “Gentlemen, you could all be out of business by Christmas,” Mr Tucker said in a stark warning to the bank chiefs, according to three sources present at the meeting. The revelation of Mr Tucker’s remarkable warning shows the depth of fear among senior officials over the havoc the collapse of the eurozone would wreak on the British financial system.

Feds Are Garnishing Social Security Benefits From Retirees Who Can't Pay Back Student Loans - (www.businessinsider.com) While most attention in the ongoing student debt crisis narrative has focused on new graduates, it turns out the federal government has been quietly targeting a different group of debtors: retirees. The Treasury Department has been withholding as much as 15 percent of Social Security benefits from "a rapidly growing number of Social Security recipients who have fallen behind on federal student loans," Smart Money's Annamaria Andriotis reports: From January through August 6, the government reduced the size of roughly 115,000 retirees' Social Security checks on those grounds. That's nearly double the pace of the department's enforcement in 2011; it's up from around 60,000 cases in all of 2007 and just 6 cases in 2000...

National parks face severe funding crunch - (www.washingtonpost.com) After more than a decade of scrimping and deferring maintenance and construction projects — and absorbing a 6 percent budget cut in the past two years — the signs of strain are beginning to surface at national parks across the country. The 469-mile Blue Ridge Parkway, which curves along the spine of the easternmost range of the Appalachian Mountains in Virginia and North Carolina, has a $385 million backlog of projects, mainly in road maintenance, and has been unable to fill 75 vacant positions since 2003. For the past three years, New Mexico’s Bandelier National Monument has lacked the money to hire a specialist to protect its archaeological ruins and resources.

Banks Use $1.77 Trillion to Double Treasury Purchases - (www.bloomberg.com) The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010. As deposits increased 3.3 percent to $8.88 trillion in the two months ended July 31, business lending rose 0.7 percent to $7.11 trillion, Federal Reserve data show. The record gap of $1.77 trillion has expanded 15 percent since May, the biggest similar-period gain since July, 2010. Banks have already bought $136.4 billion in Treasury and government agency debt this year, more than double the $62.6 billion in all of 2011, pushing their holdings to an all-time high of $1.84 trillion.

Euro Crisis Revving Up Again Fasten Your Seatbelts – (www.cnbc.com) The markets have been starved of euro zone news for several weeks, but as politicians and traders return to their desks over the next couple of weeks, the crisis is set to return to the fore again. August has so far been dominated by the Olympics, with little news from the single currency area that the merest eyebrow-raise from European Central Bank (ECB) (explain this) President Mario Draghi has moved markets. With weak trading volumes, every interview with a euro zone policymaker is pored over and has the potential to send markets up or down. “With the people who normally stir the pot on the euro crisis off on holiday, there are fewer uncertainties on a daily basis about what will happen next and when,” Carl Weinberg, chief economist at High Frequency Economics, wrote in a research note. “Despite a month of remission, Euroland’s financial sector vulnerabilities remain unaddressed.”






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