Wednesday, June 26, 2013

Thursday June 27 Housing and Economic stories

TOP STORIES:

Florida governor signs bill to speed up state's foreclosure process - (www.housingwire.com) Florida’s governor signed a much-discussed foreclosure bill Friday, enacting a series of provisions aimed at speeding up the default process in the state. While the legislation is considered a response to Florida's untimely foreclosure timelines, it's a big shift that has attracted a great deal of attention. Attorneys working within the foreclosure space note House Bill 87 comes with new legal and procedural requirements. Critics refer to it as the 'rocket docket' legislation, in reference to the quickened foreclosure review system previously in place. However, there are many procedural caveats that could make that comparison less appropriate. The office of Florida attorney Daniel Consuegra even published an alert for attorneys advising them that HB 87 reduces the statute of limitations for filing a deficiency action to only one year from the sale or date of the acceptance of a deed-in-lieu. That section of the bill takes effect July 1.

That hissing noise out of Greece could mean trouble for the euro zone  - (www.marketwatch.com) The Greek Composite index  GR:GD -4.69%, which has been slowly sliding south since mid-last month, dropped nearly 5% on Monday after the Greek government  failed to attract any binding bids for Depa, the state-owned gas company. Russia’s Gazprom had been the one key contender, but reportedly pulled the plug.  Some blamed the government’s bumbling of the whole thing, while others described it as a “bolt out of the blue”.  The Guardian noted there has been speculation that Gazprom pulled out after hearing the European Commission would end up vetoing the deal anyway. So why is this so important? “Depa is one of the host of big-ticket assets the Greeks need to get rid of in order to meet the EU privatization target of 2.6 billion euros by the end of the year. So this is a big setback for the government, as it hasn’t been able to muster up confidence [among] foreign investors to attract a successful sale,” says Ishaq Siddiqi, market strategist at ETX Capital. “The failure to do so not only undermines the confidence of the Greek government but also [underlines] that notion that Greek state-owned assets are too risky and too toxic to snap up, despite the relatively cheap price-tags.”

Battery maker Exide Technologies files for bankruptcy - (www.bloomberg.com) U.S. battery maker Exide Technologies(XIDE.O) filed for Chapter 11 bankruptcy protection early on Monday, court documents showed, with the aim of cutting debt and implementing a restructuring plan to better compete in the market. Exide, which makes lead-acid batteries, said in the court filing that a combination of rising production costs, intense competition and the economic downturn in Europe had led to liquidity constraints. Also, higher spent-battery costs and lead-related price increases have put pressure on the company's margins, Exide said, adding that taking the Chapter 11 route would be the best option to restructure its finances and operations.

China state auditor warns over local government debt levels - (www.reuters.comChina's state auditor warned on Monday that debt levels among local governments are rising and the financial burdens and risks are not being properly managed, adding to concerns over the health of the country's financial system. The National Audit Office, responsible for overseeing state finances, said in a report that the total debt at 36 local governments had risen 13 percent to stand at 3.85 trillion yuan ($627.70 billion) at the end of 2012 from two years before. Debt levels had risen as much as over 20 percent in some of the areas surveyed, it said, requiring "effective measures to strengthen debt management" and the establishment of an early-warning mechanism to effectively guard against risk.

Dont Read This if You Thought the Economy Was Improving - (smallbusiness.yahoo.com) The Bureau of Labor Statistics reported this morning that the U.S. unemployment rate is now 7.6% percent, with 175,000 new jobs created in May. At the same time, the Bureau revised its April numbers down, saying 149,000 jobs were created in April, and not the initial 165,000 it reported. The unemployment situation in the U.S. in May was essentially the same as in April. (I wonder how the Federal Reserve looks at this. Does it say, “Wow, imagine what would have happened to the jobs market in May if you didn’t create $85.0 billion in new money during the month”?) My readers know I don’t care much for the “official” unemployment numbers we get from the government statistics office. I believe the official rate doesn’t show the real picture, because it does not include people who have given up looking for work in the jobs market and people who want full-time jobs but can only find part-time jobs. When we take into consideration these two important figures that the official numbers leave out, the underemployment rate, as it is referred to, was 13.8% in May—it’s been hovering around 14% for years now.






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