Monday, September 16, 2013

Tuesday September 17 Housing and Economic stories


CalPERS loses pitch to eject San Bernardino from bankruptcy - (www.pionline.com) San Bernardino, Calif., was deemed eligible to remain in bankruptcy by a judge who rejected arguments by the $264.6 billion California Public Employees' Retirement System that the city didn't qualify for court protection. U.S. Bankruptcy Judge Meredith Jury in Riverside, Calif., ruled Wednesday in the city's favor, saying it needs the “breathing space” afforded by bankruptcy to renegotiate debts. “The city deserves a chance,” the judge said in her decision. “The creditor body deserves a chance. The citizens of the city deserve a chance.” San Bernardino sought bankruptcy protection from creditors on Aug. 1, 2012, blaming a fiscal emergency brought on by a $46 million budget shortfall. Since filing, the city has fought its employee unions in an effort to cancel their contracts and quit making certain payments to Sacramento-based CalPERS.

The US professionals quitting the rat race to become farmers  - (www.bbc.co.uk) Farming has always been a hard way to make a living. Now, a small but - anecdotally - growing group of Americans are leaving the structure and security of an office job for the gruelling, yet rewarding work of earning money from the land. Some want to be a part of improving the food supply for themselves and their community; others are excited by the prospect of becoming self-sufficient, or simply working outdoors like their ancestors did. There are no good statistics yet on how many people are moving from desk jobs to field work, but Kimberley Hart, Karen Sommerlad and Erik Jacobs have all made the transition. Ms Hart gave up making costumes for Broadway productions to grow vegetables on a modest rented farm in upstate New York, while Mr Jacobs left behind his career as a Boston-based freelance news photographer to study as an apprentice farmer. Meanwhile, Ms Sommerlad left a campus planning post at Harvard University to grow everything "from arugula [rocket] to zucchini [courgettes]".

The Next Financial Crisis Might Be Only Weeks Away - (www.peakprosperity.com) For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core. We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones. Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center. Which makes today notable, as we're receiving a number of new warning signs.  The periphery is giving way. Ever since the current economic "recovery" began, we've been warning of the high risk of a renewed financial crisis.  That risk is now uncomfortably high.  This is because nothing that led to the first round of troubles was actually addressed at the root level.  Instead, prior troubles were simply papered over with central-bank liquidity, leaving structural weakness intact – for instance, our ‘too big to fail’ banks are just as big, and our sovereign debt levels are even worse than they were pre-2008.

West Virginia Repo Company Sent To Wrong House - (www.huffingtonpost.com) Going to the wrong house and repossessing everything inside has to be one of the biggest mistakes a repo company can make. When Nikki Bailey, a former teacher living in West Virginia, returned to her home in the small town of Logan after visiting a friend at the hospital on Aug. 6, she found a big red truck backed up to the house. The driver said she had been foreclosed on and all her possessions were at the dump, according to the Logan Banner. “Everything was gone,” Bailey told area news outlet WSAZ. “Living room furniture, my Marshall diploma, my high school diploma, my pictures -- my history. I was teacher of the year. All of that stuff is gone -- certificates from that. It's all gone.” Bailey told the Logan Banner that her home had been paid for since 1988. The bank that ordered the foreclosure has not been named. The repo company that removed Bailey's belongings was told to go to a house in Godby Heights in Logan, Bailey's attorney, Tim DiPiero, told WSAZ. But no such place exists.

THE CHICAGO WAY? Illinois Officials Under Fire For ObamaCare Contracts – (www.foxnews.com) Making ObamaCare a reality will require massive computing power to track, store and process the millions of individual cases. But in Illinois, contracts to compute that state’s cases – valued as high as $190 million – are being awarded without competitive bidding. The practice already has watchdogs crying foul. “No transparency and with no bidding -- if that’s legal in Illinois, It shouldn’t be.” said Adam Andrzejewski of openthebooks.com, a watchdog group. “To the extent that is happening across the country, the citizens need to know it.” “It has the hallmarks of everything that is Chicago and also Illinois, which is totally imprudent and not the best practices,” says Illinois Republican State Senator Ron Sandack. Illinois cases are stored and processed in the Medicaid Management Information System or MMIS. The Department of Health and Family Services describes the 30-year-old system as antiquated and needing an upgrade to handle the massive case load expected from ObamaCare.






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