Wednesday, October 30, 2013

Thursday October 31 Housing and Economic stories

TOP STORIES:

Inside Puerto Rico's looming debt threat - (www.cnbc.com) Representatives of the government of Puerto Rico talked to investors Tuesday afternoon, as the U.S. commonwealth tried to assuage market concerns about its ability to repay its massive debt load. The governor of Puerto Rico told investors, "We will do everything to honor all our commitments."  The comment was the beginning of what was expected to be an up to three-hour presentation, with 75 PowerPoint slides, all designed to calm investor worries. The island has more than $70 billion in debt, much of which has fallen in value as investor concerns have grown. As part of the presentation, the government announced its budget deficit for fiscal year 2014 is expected to be $820 million, down from a preliminary estimate of $1.29 billion in 2013, and $2.38 billion in 2012.

Obamacare deductibles a dose of sticker shock - (www.chicagotribune.com) Adam Weldzius, a nurse practitioner, considers himself better informed than most when it comes to the inner workings of health insurance. But even he wasn't prepared for the pocketbook hit he'll face next year under President Barack Obama's health care overhaul. If the 33-year-old single father wants the same level of coverage next year as what he has now with the same insurer and the same network of doctors and hospitals, his monthly premium of $233 will more than double. If he wants to keep his monthly payments in check, the Carpentersville resident is looking at an annual deductible for himself and his 7-year-old daughter of $12,700, a more than threefold increase from $3,500 today.

Obama sold voters bill of goods on health care - (www.sfgate.com) As a candidate for president, Barack Obamasold his signature universal health care plan with the promise that it would "cut the cost of a typical family's premium by up to $2,500 a year." Now that the Affordable Care Act exchanges are open for business, voters are finding that the biggest problem with Obamacare isn't that some Web sites crashed last week but that the Obama promise of big savings for the average family was too good to be true. Now that the exchanges are open for business, people who already have individual coverage have something new to not like: sticker shock. The Affordable Care Act isn't affordable after all. Last week, I began hearing from readers whose individual policy premiums are going up, not down. A local architect sent me a notice he received from Kaiser informing him that his individual coverage will increase by $199.95 per month, or 78.9 percent. When he added his two sons, the percentage increase was even greater. A freelance journalist told me she made $98,000 last year. But she and her retired husband, both 51, wouldn't pay $7,200 in premiums for high-deductible coverage. It's cheaper to pay the fine, she said. Besides, she added, "we're healthy."

Coal Slump Leaves Australia Port Half-Used, Lenders at Risk - (www.bloomberg.com) Australia & New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corp. are among lenders risking losses on $3 billion of loans backing a coal port in Australia that will be twice its required size. Wiggins Island Coal Export Terminal Pty, the group comprising the unfinished project’s owners, including Glencore Xstrata Plc and Wesfarmers Ltd., in 2011 borrowed the debt from 19 banks, according to data compiled by Bloomberg. When the port in the state of Queensland begins shipping in early 2015, only about half of its 27 million metric tons of initial annual export capacity will be used after a slump in coal demand, forecaster Wood Mackenzie Ltd. estimates.  “There will be more capacity than mines available to utilize it,” Daniel Morgan, a Sydney-based analyst at UBS AG said in a phone interview. “It may result in the banking syndicate having to renegotiate the terms or the price, or taking a write-down on their position.”

Time to take bets on Frexit and the French franc? - (www.telegraph.co.uk) We have a minor earthquake in France. A party committed to withdrawal from the euro, the restoration of French franc, and the complete destruction of monetary union has just defeated the establishment in the Brignoles run-off election. It is threatening Frexit as well, which rather alters the political chemistry of Britain's EU referendum. Marine Le Pen's Front National won 54pc of the vote. It was a bad defeat for the Gaulliste UMP, a party at risk of disintegration unless it can find a leader in short order. President Hollande's Socialists were knocked out in the first round, due to mass defection to the Front National by the working-class Socialist base. The Socialists thought the Front worked to their advantage by splitting the Right. They have at last woken up to the enormous political danger.





No comments: