Thursday, May 29, 2014

Friday May 30 Housing and Economic stories

TOP STORIES:

Seemingly terrific April jobs report poses strange puzzle - (www.marketwatch.com) Funky job reports are not unusual, and the employment data for April certainly fits the bill. How else to explain the biggest gain in hiring in more than two years – at the same time the labor force shrank by the second largest amount in 32 years. Let’s review. The U.S. added 288,000 jobs in April, the biggest spike since January 2012. The increase in employment is measured by the so-called establishment survey that quizzes private firms, government worksites and nonprofit institutions. Yet the size of the labor force sank by 806,000. That’s the biggest drop since a 848,000 plunge in October and you have to go all the way back to 1981 to find another 800,000-plus decline. Labor-force changes are measured by the “household” survey that interviews Americans directly. Typically a shrinkage in the labor force occurs when people become so discouraged about finding a job that they give up looking for work. Yet the April surge in hiring would suggest that more jobs – not fewer – are available.

Boehner spokesman leaving for insurance group supportive of Obamacare  - (www.marketwatch.com) Brendan Buck, press secretary for House Speaker John Boehner, is trading Capitol Hill for the health insurance industry. Buck is joining America’s Health Insurance Plans, or AHIP, as vice president of communications after more than three years with Ohio Republican Boehner. Boehner, and House Republicans in general, have long warred against President Barack Obama’s health-care law, which requires individuals to buy insurance or pay fines. AHIP, meanwhile, has had a more cooperative relationship with the law, and has said little critical about it. In December, for example, health insurers voluntarily extended the deadline for individuals to pay for insurance policies they choose through the health law. At the time, AHIP Chief Executive Karen Ignagni said insurers were taking “an important step to give consumers greater peace of mind about their health-care coverage.”

It's Policy to Kick Elderly Folks Out On The Street Rather Than – (www.ml-implode.com) In 2005, at 66 years young, and getting ready to retire or at least re-tread, he wanted to take some cash out of his home’s equity and the nice people at World Savings were standing by ready willing and able to put him right into an Option ARM mortgage, which I think even the most predatory of the predatory lenders would agree would have been about the most inappropriate choice for him in his stage of life… but, no matter.  We can always come back to that later if it makes sense. Next, we all know what happened… the world blew up, as the housing market melted down, and the financial crisis ended the rich histories of every single investment bank on Wall Street.  Like millions of others, soon Arthur couldn’t keep up with his mortgage payments and faster than you could say, “don’t worry, you can always refinance,” he found himself headed for foreclosure.

Hardship Makes a New Home in the Suburbs - (www.nytimes.com) The freeway exits around here are dotted with people asking for money, holding cardboard signs to tell their stories. The details vary only slightly and almost invariably include: Laid off. Need food. Young children. Mary Carmen Acosta often passes the silent beggars as she enters parking lots to sell homemade ice pops, known as paletas, in an effort to make enough money to get food for her family of four. On a good day she can make $100, about double what she spends on ingredients. On a really good day, she pockets $120, the extra money offering some assurance that she will be able to pay the $800 monthly rent for her family’s three-bedroom apartment. Sometimes, usually on mornings too cold to sell icy treats, she imagines what it would be like to stand on an exit ramp herself. “Everyone here knows they might have to be like that,” said Ms. Acosta, 40, neatly dressed in slacks and a chiffon blouse, as she waited for help from a local charity in this city an hour’s drive east of Los Angeles. Both she and her husband, Sebastian Plancarte, lost their jobs nearly three years ago. “Each time I see them I thank God for what we do have. We used to have a different kind of life, where we had nice things and did nice things. Now we just worry.”

Yes, we're in a tech bubble. Here's how I know it - (www.cnn.com) When tech startups are willing to offer almost anyone -- even a journalist -- shares ahead of an IPO, a burst isn't terribly far behind. I was surprised but not completely flabbergasted by the phone call I received a few weeks ago. A representative of Arista Networks, a networking company I've written about recently, phoned to inform me that the company's chief executive wanted to offer me "friends and family" shares in Arista's upcoming initial public offering. The offer was explicit, down to the number of shares I'd have the opportunity to purchase at the IPO price. The caller specifically wanted me to understand this offer came directly from CEO Jayshree Ullal. I declined. I briefly explained that it was impossible for me to accept the gift that was being offered. I also told the (clearly uncomfortable) Arista rep, with whom I've dealt for stories forFortune, that it is a horrible idea to be making these shares available to me. That's because the company must be similarly propositioning other business partners who, like me, are neither a friend of the company nor family members of its employees.





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