Friday June 26 Housing and Economic stories

TOP STORIES:

Junk-Bond Defaults Growing as Pressure From Commodities Persists  - (www.bloomberg.com)  U.S. junk-bond defaults rose to the highest level since October 2009 as depressed prices plague energy, metal and mining issuers that represent the largest contingent of debt from the riskiest companies. There were nine defaults in May, including iron processor Magnetation LLC and Patriot Coal Corp., according to Fitch Ratings, with energy and metals and mining companies accounting for all of them. The two industries comprised 93 percent of defaults in the second quarter. The Bloomberg Commodity Index of 22 raw materials has lost 25 percent in the past year, with the price of a barrel of oil plummeting by nearly half and iron falling by as much as a third.

Platinum Prices Hit Six-Year Low - (online.wsj.com)  Platinum prices fell to a six-year low on Monday on concerns over growing supplies of the precious metal. Platinum for July delivery, the most actively traded contract, closed down 0.8% at $1,088.60 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since March 18, 2009. Investors are worried about platinum stockpiles, which are growing as miners in South Africa ramp up output following a five-month strike in 2014. South Africa is the world’s largest producer of the metal, and Barclays estimated platinum production from the country is on track to hit a five-year high in 2016.  At the same time, tougher government regulations in Europe are expected to shrink the share of diesel-powered vehicles and threaten demand for platinum, which is used as an emission filter in diesel cars.

EU preparing for 'state of emergency' after Greek talks collapse - (www.reuters.com) Greece and its creditors hardened their stances on Monday after the collapse of talks aimed at preventing a default and possible euro exit, prompting Germany's EU commissioner to say the time had come to prepare for a "state of emergency". Prime Minister Alexis Tsipras ignored pleas from European leaders to act fast. Instead he blamed creditors for Sunday's breakdown of the cash-for-reform talks, the biggest setback in long-running negotiations to unlock aid. He said his government had a responsibility to defend Greece's dignity and would resist demands for further pension cuts. "It is not a matter of ideological stubbornness. It has to do with democracy," said the 40-year-old leftist, who was elected on a pledge to end austerity. Athens now has just two weeks to find a way out of the impasse before it faces a 1.6 billion euro repayment due to the International Monetary Fund, potentially leaving it out of cash, unable to borrow and dangling on the edge of the currency area.

Ukraine in "General Collapse" - FortRuss – (www.fortruss.blogspot.com) So: there is no equipment, there is no money, no oxygen for firefighting suits, no money to repair or replace any of it. Therefore everything continues to burn, and people continue to die.  But that's the situation in Kiev and the Kiev District where traditionally things are better than in other places. So what is happening in the regions? It's frightening to even try to imagine. For example, there was recently a powerful explosion in Vinnitsa which was heard in the entire city. But none of the government representatives even tried to calm down the city population for two days after the event by explaining what actually blew up (as a result the city is full of panicky rumors about a mercury leak). The problems are not limited only to the firefighter management, the wear and tear of equipment, the lack of spare parts, they are evident in all the directorates. I'm sure everyone has heard of the story with Shkiryak's plane in Katmandu. The Ukrainian military is not an exception.

What Congress "Learned" From TARP is Causing the Foreclosure Crisis to Continue | Mandelman Matters- (www.ml-implode.com) First of all, let’s stop blaming the banks and servicers for whatever is going on.  It’s been seven years, so obviously they are doing whatever they can and will, based on the current rules and requirements.  HAMP is a government program, so if it needs to change to be better, it’s not up to banks and servicers… Congress, however could make improvements the moment they wanted to do so. No one elected banks or servicers to ensure fundamental fairness in this country, it’s Congress that’s supposed to represent constituents… voters in this democracy.  And they’re the group that has done nothing since 2009, when the chaos of HAMP and loan modifications first started as a government program, regaled by the Treasury Department. So, none of this is any sort of secret.  I think it’s safe to say that almost every homeowner, at least in most states has experienced, or at least heard of the difficulties associated with getting a loan modified.  We’ve lost roughly eight million homes to foreclosure to-date, and there have been something like six million loans modified during that same timeframe… and I don’t know how many short sales have been conducted.

OTHER STORIES:

Greek Stocks Lead Europe Markets Lower as Debt Talks Break Down - (www.bloomberg.com)
Spain’s Bonds Decline as Greek Impasse Fuels Contagion Selloff - (www.bloomberg.com)
Out of Options and Time, Tsipras Faces Greece’s Moment of Truth - (www.bloomberg.com)
Tsipras Hardens Greek Stance After Collapse of Talks - (www.bloomberg.com)
E.U. Urged to Plan for Greece to Default - (www.nytimes.com)

Russian central bank cuts key rate by 1 pct point - (www.reuters.com)
Draghi Faces EU Court Ruling on 2012 Bond Plan as Greece Teeters - (www.bloomberg.com)
China's hedge fund industry blooms as stocks boom - (www.ft.com)
Russia warns it would react should U.S. station arms in Baltics, eastern Europe - (www.reuters.com)
Two soldiers killed as Ukraine warns of escalating violence in east - (www.reuters.com)