San
Mateo foresees ‘silver tsunami’ of aging Baby Boomers who can’t afford home
prices - (www.sfgate.com) Newly
elected San Mateo City Council member Joe Goethals called it a “silver
tsunami.” While the imagery is striking, the facts are sobering: By 2030,
almost a quarter of San Mateo County’s population is expected to be older than
65 — and a new study has found that nearly 20 percent of Californians in
this age group live in poverty. The study by Stanford’s
Center on Poverty and Inequality and the Public Policy Institute of
California aimed to provide a more comprehensive and rigorous accounting
of poverty statistics than the U.S. Census Bureau. Dubbed the California
Poverty Measure, or CPM, the research took housing costs into account when
determining poverty levels. For San Mateo County, the study determined that
18.4 percent of residents earned less than the poverty threshold of
$36,504, a much higher figure than the Census estimate of 6.7 percent. San
Mateo city officials, aware that it’s hard to find a one-bedroom apartment for
under $2,000 a month, have begun to explore ways to serve a rapidly aging
demographic. But at an Oct. 16 forum, Mayor David Lim and several council
members said the affordability problem remains easier to identify than to
solve. One solution advanced by the state legislature, which Lim supported,
would have allowed San Mateo to adopt an ordinance to require below-market-rate
housing on 15 percent of all rental units.
Payback
Time for Subprime - (www.chartporn.org) Settlement and fines for mortgage abuses are
starting to add up to real money. Of course, as Matt Taibbi
points out, this is still just a drop in the proverbial
bucket compared to the related profits and scale of activities that took place.
Bernanke
Giving Pledges To Screw Savers Out Of Interest Longer - (www.bloomberg.com) From Patrick’s
blog at www.Patrick.net! This was
supposed to be the year that Herb Harrison found a newer, bigger home to
replace his current house in Framingham, Massachusetts. Then, in May, mortgage rates began to
rise and he put his hunt on hold. “My wife and I looked at each other and said
‘no way,’” said Harrison, who works in information technology. “It was
something we thought about when rates were at rock-bottom, but once the rates
spiked, we decided to stay where we are.” Now shoppers like the Harrisons are
getting another chance, thanks to Federal Reserve Chairman Ben S.
Bernanke. After five months of public speculation
about when the Fed would end its housing stimulus sent mortgage costs to a
two-year high in September, the U.S. central bank last week pledged a
continuation of the bond buying responsible for last year’s all-time low 3.36
percent for a 30-year fixed loan. Interest rates may now hold at close to 4
percent through early next year, said Joel Naroff, president of
Naroff Economic Advisors. This was supposed to be the year that Herb Harrison
found a newer, bigger home to replace his current house in Framingham,
Massachusetts. Then, in May, mortgage rates began to
rise and he put his hunt on hold. “My wife and I looked at each other and said
‘no way,’” said Harrison, who works in information technology. “It was
something we thought about when rates were at rock-bottom, but once the rates
spiked, we decided to stay where we are.” Now shoppers like the Harrisons are
getting another chance, thanks to Federal Reserve Chairman Ben S.
Bernanke. After five months of public speculation
about when the Fed would end its housing stimulus sent mortgage costs to a
two-year high in September, the U.S. central bank last week pledged a
continuation of the bond buying responsible for last year’s all-time low 3.36
percent for a 30-year fixed loan. Interest rates may now hold at close to 4
percent through early next year, said Joel Naroff, president of
Naroff Economic Advisors.
Consumer
confidence in homebuying hits all-time low - (www.housingwire.com) Consumer confidence in housing
significantly widened last month, as most taxpayers were turned off by the
federal government shutdown and the ongoing debt ceiling debate, taking a toll
on American’s outlook toward the housing market. The share of consumers who
believe it’s a good time buy a house declined to 65% — an all-time low — while
the number of those who believe mortgage rates will go up in the next year fell
to 57%, according to Fannie Mae’s latest monthly survey. It’s important to
note that the survey was conducted primarily in the first two weeks of October
– before the government shutdown ended and the debt ceiling agreement was
reached.
Downgrade
heaps pressure on Hollande - (www.ft.com) S&P criticises France’s high tax rates for
stifling growth. François Hollande’s stuttering effort to revive the French
economy suffered another setback when Standard & Poor’s lowered the
country’s credit rating and criticised its high taxes and flagging structural
reforms.
The ratings
downgrade came after a testing few weeks for the French president that have
featured strikes by Brittany farmers and professional
footballers over taxes that are among the highest
in the western world. Mr Hollande’s approval ratings have
slipped to record lows. “The downgrade reflects our view that the French
government’s current approach to budgetary and structural reforms to taxation,
as well as to product, services and labour markets, is unlikely to substantially
raise France’s medium-term growth prospects,” S&P said in a statement on
Friday.
Germany
Clashes With France Over Power to Close Failing Banks - (www.bloomberg.com)
Draghi running out of bazookas from ECB's arsenal - (www.cnbc.com)
Draghi running out of bazookas from ECB's arsenal - (www.cnbc.com)
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