Monday, July 21, 2014

Tuesday July 22 Housing and Economic stories



Vacant-House Fakery Reborn as Cleveland to Camden Fight Blight - (www.bloomberg.com) Camden, New Jersey, one of the poorest and most crime-ridden U.S. cities, has awaited rebirth for a generation. For now, it has Christopher Toepfer and his paintbrush. Ten feet up a ladder, Toepfer, a 51-year-old artist, is turning a rotting factory’s plywood-covered windows from a mess of gang graffiti into a railroad mural. The spruce-up, though it won’t cure the neighborhood’s ills of poverty and violence, will make a bright spot of the biggest blight on Federal Street. Thirty years after New York City Mayor Ed Koch drew scorn for gussying up uninhabitable Bronx tenements with decals of curtained windows, urban fakery is spreading in U.S. cities where the recession’s wave of foreclosures added to decades-long decay. 

Argentina Seen Breaking Vows as Fernandez Legacy at Risk - (www.bloomberg.com) Argentina’s President Cristina Fernandez de Kirchner has less than a month to choose between two unpalatable options: fulfilling a vow never to pay off creditor hedge funds, or negotiating with them to avoid a rerun of the 2001 debt crisis that forced a predecessor to flee the presidential palace in a helicopter. With the economy contracting and foreign currency reserves near an eight-year low, she is likely to decide that a deal to pay off the $1.5 billion the funds are demanding is the least bad choice, said Claudio Loser, the head of research firm Centennial Group Latin America. “A catastrophic situation in the economy would be worse” for Fernandez than any backtracking on her promises, Loser, a former International Monetary Fund director, said by phone from Washington. The government “is very fearful that they could be kicked out or the last year of their term is a disaster.”

Russia Delivers 2nd Batch of Jets To Iraq As USA Unloads 4000 Hellfire Missiles - (www.zerohedge.com) The battle for favoritism among the 'apparent' leaders in Iraq continues. Russia just delivered the second batch of Sukhoi fighter jets (which will be flown by Iraqi pilots and "are ready to provide air support to the armed forces"), and the US unloaded 4,000 additional Hellfire missiles to support Iraq's fight against the Islamist insurgents. While this morning the intelligentsia of mainstream media proclaimed "the situation in Iraq is calming down" predicated on the fact that oil prices were lower and stocks at record highs, we suspect the additional war material  to Iraq will do nothing but increase the determination of the "Islamic State" to increase its Caliphate.

Feud Between Oligarchs Seen as Cause of Bank Run in Bulgaria - (www.nytimes.com) Even in an Eastern European country with a history of financial panics and political intrigue, it was an alarming picture. Thousands of fearful depositors lined up outside one of Bulgaria’s three largest banks. In a matter of hours on Friday, they withdrew the equivalent of nearly $550 million. The lines had dwindled by Monday after European and Bulgarian authorities took emergency measures. But questions remained about how a country could be plunged into crisis by what the authorities described as nothing more than a digital rumormongering campaign that may have been linked to animosity among rival business tycoons with political ties. The banking crisis coincides with acute political instability in Bulgaria, a country of 7.3 million. The Socialist-led government of Prime Minister Plamen Oresharski is expected to resign soon, after an agreement among the country’s main political parties to hold elections on Oct. 5.




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