KeNo's Housing and Economic Portal: Wednesday April 11 Housing and Economic stories

Tuesday, April 10, 2012

Wednesday April 11 Housing and Economic stories

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Analysis: For resilient Portugal, time is the enemy - (www.reuters.com) Stuffed into a time capsule, this ancient university town's local newspaper would give future historians a good idea of the pain that Europe's first financial crisis of the century inflicted on Portugal. The Diario de Coimbra reported on its front page last Thursday how bankers had called in a loan on a local sports stadium. A piece on the back page asked whether a rise in suicide rates was linked to the deepening economic downturn. A bank advertised the auction of 38 foreclosed properties. Other ads promoted some of the many gold and silver dealerships that have sprung up since the onset of the crisis for people forced to sell the family jewels. Burdened with public debt that will approach 120 percent of national output this year, Portugal is suffering so badly that many in the market wonder whether, along with Greece, it can escape its debt trap without abandoning Europe's single currency.

Dennis Rodman Is Broke And 'Extremely Sick' - (www.businessinsider.com) Former NBA player Dennis Rodman is broke and "extremely sick," according to the LA Times. According to court documents, Rodman owed $808,935 in back child support as of March 1, and another $51,441 in back spousal support. In the court documents, Rodman's attorney said that Rodman can barely pay for his living expenses and definitely cannot afford child support and spousal support. The attorneys representing him have worked pro bono. The documents also state that Rodman is "extremely sick" but they do not explain what his illness is.

UK Banks urgently need to raise more capital - (www.telegraph.co.uk) British banks are still not holding enough capital to protect them against further shocks and must take action "as early as feasible" to raise funds, the Bank of England has warned. The warning from the Bank's new Financial Policy Committee, created as a new risk watchdog, underlined the ongoing fragility of the banking system. A statement released following the FPC's meeting on March 16 said: "The Committee remained concerned that capital was not yet at levels that would ensure resilience in the face of prospective risks and noted that the ability to make further progress via greater restraint of cash distributions was limited. "It therefore advised banks to raise external capital as early as feasible". The FPC said that banks had gone as far as they could to raise capital by keeping down pay, dividends and share buybacks, and said it would review the situation at its next meeting in June.

FHA Bailout Risk Looming Larger After Guarantee Binge: Mortgages - (www.bloomberg.com) The Federal Housing Administration won’t be able to earn its way to financial health this year, increasing the chance it will need a taxpayer bailout, based on an updated forecast from Moody’s Analytics, which provides the agency’s housing-market analysis. The U.S. government mortgage-insurer, which guarantees $1.1 trillion in home loans, had been counting on “robust growth” in home prices to help rebuild its insurance fund after paying out $37 billion to cover defaults the past three years, according to its annual report to Congress, filed in November. It won’t get that growth until 2014, according to the latest outlook from Moody’s Analytics. Prices will fall 3 percent in fiscal 2012 before growing 1.4 percent in 2013 and 6.5 percent in 2014, said Celia Chen, a Moody’s Analytics housing economist who updated her estimate after providing the housing-market forecast for the FHA’s annual actuarial report.

Michigan Panel Gives Detroit 10 Days to Reach Finance Deal - (www.bloomberg.com) Detroit (9845MF) has 10 days to agree to a financial recovery plan that would forestall the appointment of an emergency manager by Michigan (STOMI1) Governor Rick Snyder, a state review panel decided. Snyder said he’s close to a deal with the city that would avoid a manager. He said he had “fruitful” discussions with six of nine City Council members today. A final agreement is possible by March 30, said state Treasurer Andy Dillon, who led the review team. “My goal is for the state to provide a supporting resource, to be a partner in helping achieve success,” Snyder, 53, told reporters before the review team met.