Wednesday, March 5, 2014

Thursday March 6 Housing and Economic stories


What do the jobless do when the benefits end? - (www.washingtonpost.com)  The end to federal jobless benefits for nearly 2 million people has sparked a bitter debate in Congress about whether Washington is abandoning desperate households or simply protecting strained government coffers. It is also providing real-time answers to a question economists have long pondered: How do people survive when they suddenly have no money coming in? Studies show that about a third of the people cut off from long-term unemployment benefits will find help from Social Security or other government programs. Others will cobble together dwindling savings or support from family. But most baffling to economists are the people who appear to come up with more-idiosyncratic solutions, which are tough to identify and almost impossible to track. Take Wessita McKinley of Capitol Heights. The Maryland woman had to think outside the box after her contract with a local school board ended last summer. An Air Force veteran, she earned a six-figure salary as a private contractor before the recession. But she took a series of increasingly low-paying jobs as the economy soured.

Fresno REALTOR Will 'Die in Prison' HAHA! My God is Good! Die, Asshole, Die! - (www.mortgagedaily.com) Realtor and his Husband headed to prison for Mortgage Fraud!! A judge mostly refused to go easy on former Modesto real estate broker James Lee Lankford on Monday, sentencing the 75-year-old to 10 years in federal prison for swindling nearly $10 million from lenders and elderly homeowners. His husband, Jon, 49, was sentenced to five years of probation and will care for their four adopted, special-needs children under a deal worked out with U.S. attorneys. About two dozen of their victims made the trip from Modesto, some telling Judge Anthony Ishii how James Lankford had gained their trust, then swiped their homes or retirement savings and ruined their health. "(James Lankford) will die in prison; I'm happy with that," said John Rivera outside the courtroom. His parents, Mike and Pat, were among the victims. Lankford, who owned Century 21 Apollo, "lied, cheated and defrauded" Paul Triller, duping him into signing a bogus document before he died in 2010, said Triller's daughter, Carol Rogers. "He suffered so much stress and anxiety and we all believe that shortened his life," she said. "He not only (defrauded) people he doesn't know, he's done that to his friends and family, too," said Patrick Wright. "He's a liar, a thief and a wolf in sheep's clothing."

World asleep as China tightens deflationary vice - (www.telegraph.co.uk)  China's Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons. The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China's $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle. This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications. Brazil, Russia, South Africa, and the commodity bloc are already in the cross-hairs. "China is getting serious about deleveraging," says Patrick Legland and Wei Yao from Societe Generale. "It is difficult to gently deflate a bubble. There is a very real possibility that this slow deflation may get out of control and lead to a hard landing."

Farm Profits Seen Falling as Five-Year Crop Boom Ends - (www.bloomberg.com)  “We’re looking at an era of about three, four, five, years of reduced profitability in agriculture,” Matthew Roberts, an economist at Ohio State University in Columbus, said before the report was released. Without significant disruptions to crop production, “by 2015, 2016, farms that expanded very rapidly over the last few years could be vulnerable, and we would see the first significant farm failures.” The slump in the value of U.S. crops will erode prosperity in Corn Belt states, harming rural business and, if sustained, may lead to a wave of farm failures for the first time in a generation, Roberts said.

Yes, There’s a Pilot Shortage: Salaries Start at $21,000 - (www.businessweek.com) A pilot shortage has forced smaller airlines to cancel flights and ground jets, a side effect of federal regulations that have dramatically increased the minimum number of flight hours required for new pilots. The labor shortages and service cuts have hit first and most sharply at the regional airlines that ferry passengers from small markets on behalf of bigger carriers. One of the largest regionals, Republic Airways Holdings (RJET), plans to stop flying 27 of its 41 Embraer (ERJ) 50-seat jets because of the pilot shortage. That decision will lower income as much as $22 million this year, Republic said today in a regulatory filing. In 2010, Congress mandated that airlines’ first officers would need to hold an Airline Transport Pilot certificate–which requires at least 1,500 flight hours (PDF)–as opposed to the 250 hours and commercial pilot certificate previously required. The new rules, which took effect in August, came in response to the 2009 crash of a Continental Express regional flight, which investigators linked to shortcomings in the pilots’ training.




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