KeNo's Housing and Economic Portal: Thursday February 4 Housing and Economic stories

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TOP STORIES:

Californians down over finances again - (www.sfgate.com) For an unprecedented third straight year, a majority of Californians are worse off financially than they were the previous year, according to a Field Poll released today. Since 1961, there had been no consecutive years in which a majority of Californians said their finances had worsened until last year. The trend continued this year, according to the poll. "This is a new era. California is usually bigger and better," said Mark DiCamillo, the Field Poll director. He attributed the trend to the myriad financial problems people are facing that extend beyond unemployment. "It's not just affecting a certain population, but is affecting a broad base of people," he said, noting financial losses people have experienced in the values of their homes and their investment portfolios. That broad impact is reflected in Californians' perceptions about the state's economy in general, as 95 percent of those surveyed said the economy is in "bad times." That is the second largest percentage of people to say that since 1978, and the only higher percentage was last year.

Brainwashed to think banks are the victims - (www.heraldtribune.com) A column by Florida's Jack McCabe, a rational Florida real estate analyst, has prodded me to harp on what I see as a basic misunderstanding about mortgages. It isn't McCabe's misunderstanding. He gets it. His column detailed the latest version of his proposal to encourage realistic mortgage workouts, including large principal reductions for upside-down homeowners. Such principal reductions could help many underwater homeowners remain homeowners, and once again have an equity stake that will keep them wanting to make payments. But his aim isn't charity. It is business. He wants to help financial institutions be realistic, and help the national economy get healthier, and curb the economic chaos caused by needlessly rampant foreclosures. But, resistance from financial institutions aside, I think there is a psychological road block we all share: We've been brainwashed into thinking banks are victims. No way, you say? You already know that greedy financial institutions fueled the real estate speculation and the resulting price bubble, and so helped cause all this pain when the bubble popped? Well, yes, you do. Maybe you even hate banks, just by natural habit.

Pawnshops Thrive, Draw Scrutiny over Interest Rates - (www.time.com) With banks reluctant to loosen purse strings and credit-card companies aggressively slashing credit lines, a growing number of consumers are turning to the once murky world of pawnshops for quick cash. "Loans are up 20% to 25%," estimates David Crume, president of the National Pawnbrokers Association. The trade group's executive director, Dana Meineke, says the weak economy and turmoil in the credit markets are expanding the customer base. "We're seeing some new faces," says Daniel Feehan, president and chief executive of Cash America International, a pawnshop company based in Fort Worth, Texas.

Is The U.S. Economy Being Tanked By Mistake or By Intent? - (www.lewrockwell.com) The government wants Americans to believe the greatest economic collapse in history was the result of ineptness and mistakes yet still have confidence in their financial institutions. Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to "mistakes"? Not malfeasance – just every-day mistakes? Bankers just fell asleep at the helm at a critical juncture in American history. Is that what we are being led to believe? Oh well, it’s just 18 million American homes that now lay empty in the wake of unprecedented foreclosures, and the bankers have collected obscene bonuses for reckless lending of their depositors’ money. It’s like the captain and crew of a ship saying, not to worry, twenty-percent of the passengers were lost overboard, but this was due to unavoidable mistakes, and then being rewarded with bonuses when they reach port. Are Americans to believe that the Federal Reserve lowered interest rates to create a false bubble in the economy, at the same time the Securities Exchange Commission allowed investment banks risky reserve ratios and exerted lax control over investment tycoons like Bernie Madoff, and in lock step, the credit rating agencies (Fitch, Moody’s and Standard & Poor’s) handed out sterling A+ credit ratings on risky mortgage-backed securities, while the US Treasury Department stood by and did nothing? Shall Americans conclude the world’s largest economy is beyond the management skills and regulation of virtually every financial arm of government and the private sector? If so, widespread incompetence would suggest Americans had better come up with some institution or instrument of their own invention to protect their money. Whatever or whomever did bring down the American economy, it appears to be an orchestrated effort. If one arm of the financial industry had objected or performed their job responsibly, the whole economic collapse could have been averted. The credit rating agencies alone could have put an abrupt halt to what amounts to a financial collapse of western civilization.

Calif. sets new time limits to see doctors - (www.sacbee.com) California is set to become the first state to limit the time patients must wait to see a doctor. The Department of Managed Health Care plans to announce Wednesday there will soon be a limit of 10 business days on the appointment time to see a family practitioner. The deadline is 15 days to see a specialist and 48 hours for people seeking urgent care. In addition, doctors' offices must return telephone calls within 30 minutes. The time limits apply only to doctors in health maintenance organizations but officials say that will cover some 21 million Californians. A 2002 state law mandated timely access to medical care, and the specifics were worked out in years of negotiations with doctors, hospitals, HMOs and consumer groups.

Worst year for builders since the 1950s - (www.sacbee.com) The first official count of Sacramento-area new-home sales is in, and it shows just 2,814 sales for 2009. That's a combined count for El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties.The count comes from Folsom-based consultant The Gregory Group. It's down 40 percent from the worst year previously imaginable - 2008's 4,695 sales. Most agree it's the fewest sales in the region since the 1950s and possibly, since the end of World War II. Fourth quarter 2009 sales and pricing details by city are here. Roseville led other cities by a long shot in 2009. One of every four regional sales were in the city of 112,000. The city counted 733 sales for the year. That was followed by Elk Grove with 368, Rancho Cordova with 316, Natomas, with 230 and Rocklin, with 204. Lincoln counted 150 sales. El Dorado Hills had 109 and West Sacramento 101.

OTHER STORIES:

New Rental Rate Service - (www.patrick.net)

Banks start foreclosure on 1,500 Orange County mortgages - (www.mortgage.freedomblogging.com)

A Manhattan apartment for the price of a car? - (www.therealdeal.com)

Tough housing market in 2010 - (www.vcstar.com)

One in seven U.S. mortgages foreclosing or delinquent - (www.reuters.com)

Hong Kong Leads Gains in Global House Prices - (www.bloomberg.com)

Rogers Says Hong Kong Property in Bubble - (www.businessweek.com)

Logjam Continues for Loan Mods - (www.propublica.org)

Wall St. Weighs Legal Challenge to Proposed Bank Tax - (www.nytimes.com)

Goldman delays bonus decision - (www.reuters.com)

GSK offers scientists labs, data to fight malaria - (www.sacbee.com)