Tuesday, October 9, 2012

Wednesday October 10 Housing and Economic stories



TOP STORIES:

Young U.S. Adults Flock to Parents’ Homes Amid Economy - (www.bloomberg.com) The Class of 2008, born during the historic bull market that closed the past century, reached a dubious distinction last year: More than a million of the college graduates have gone back home. The number of 26-year-olds living with parents has jumped almost 46 percent since 2007, according to Census Bureau data compiled by the University of Minnesota Population Center. Last year, the number of 18- to 30-year-olds living with their parents grew to 20.7 million, a 3.9 percent gain from 2010. The figures underscore the difficulty that millions of young people have had in finding jobs and starting careers in the U.S. following the longest recession since the Great Depression. About a quarter of American adults between the ages of 18 and 30 now live with parents, while intergenerational households have reached the highest level in more than 50 years.

Postal problems grow - (www.money.cnn.com) At the end of this month, the U.S. Postal Service takes another step toward insolvency. On Sunday, the service is required by law to pay the federal government $5.6 billion to fund health care benefits for retirees. But it won't do it, because it doesn't have the money. It will be the second time that the service has defaulted on a payment, the first occurring on Aug. 1. For the time being, the default means little. "This default will have no effect on the processing or delivery of mail, and employees and suppliers will continue to be paid," said David Partenheimer, a spokesman for the Postal Service. But if Congress does nothing, come next spring, the Postal Service will truly start running out of cash. That means the agency may not have enough to pay mail carriers and subcontractors, which could mean drastic cuts to the mail delivery system -- postal service Armageddon.

Police seal off Spain Parliament ahead of protest - (finance.yahoo.com)  Spain's Parliament took on the appearance of a heavily guarded fortress Tuesday, hours ahead of a protest against the conservative government's handling of the economic crisis. The demonstration, organized behind the slogan 'Occupy Congress,' is expected to draw thousands of people from around Spain and was due to start around 1730 GMT. Madrid's regional Interior Ministry delegation said some 1,300 police would be deployed though protesters say they have no intention of storming the chamber, only of marching around it. They are calling for fresh elections, claiming the government's austerity measures show the ruling Popular Party misled voters to get elected last November. The protest comes as Spain struggles in its second recession in three years and with unemployment near 25 percent.

Spain Presses ECB to Say How Much It Will Spend on Bond Buying - (www.bloomberg.com) Spain said it needs to know how much the European Central Bank intends to spend buying its debt to decide if it should seek outside help as its borrowing costs rose at a bill auction in Madrid. The auction was held amid mounting tension in Madrid where police have locked down the area around the parliament before protests scheduled for today and as Catalans agitate for independence. Prime Minister Mariano Rajoy has held off seeking aid since ECB PresidentMario Draghi last month said he’ll buy Spanish debt if Rajoy accepts conditions. “There are many fronts we have to tackle,” Deputy Prime Minister Soraya Saenz de Santamaria told radio station Cadena Ser today. “We need to know to what extent the ECB will intervene in the secondary market. To take decisions you need to have all the elements on the table.”

Student Debit Card Issuer Generates Fees, Controversy - (www.cnbc.com) The explosion in student debt—more than a trillion dollars now outstanding—has been a huge boon to a Connecticut company that helps colleges and universities distribute loan proceeds to their students. But since CNBC first reported in 2010 about questionable practices at Higher One, the company has found itself answering more questions—from students, regulators and members of Congress. Founded in 2000 by Miles Lasater and Mark Volchek while they were still students at Yale, Higher One claims to serve more than half the higher education market, including more than ten million students on 1,250 campuses nationwide.






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