Thursday, November 7, 2013

Friday November 8 Housing and Economic stories


Illinoisans Beware: "Progressives" Seek Massive Tax Hike Again - (Mike Shedlock at www.townhall.com) Illinois "Progressives" (a single word to describe "economically illiterate public union sympathizers") want to pick your pocket once again. The Progressives want to hike the Illinois 2015 top tax rate from 3.75% to a whopping 9%. Moreover the income tax rate will go up on a sliding scale for everyone making over $18,000.  Promises, Promises: Recall that On the campaign trail in 2010, Gov. Pat Quinn told voters he'd veto any income tax hike that would raise Illinois' rate over 4 percent. That was one of the quickest disclosed tax lies in history. Here are a few snips from my January 13, 2011 post Business Owners Blast IL Tax Hikes;Quinn's Blatant Lies;Neighboring States Gleeful, Mayor Daley Whines;Escape to Wisconsin; Arrogance,Greed,Corruption

Heated Start in the Trial on Detroit’s Fiscal Future - (www.nytimes.com) The trial over Detroit’s eligibility for bankruptcy started Wednesday with starkly different interpretations of the events leading up to the city’s historic Chapter 9 filing in July. On one side were lawyers for the debt-ridden city, who argued that unions and retirees stonewalled out-of-court negotiations that might have saved Detroit from going bankrupt. But according to the unions and retirees, the bankruptcy filing was nothing more than the final step in a concerted effort by Michigan’s governor to take control of the state’s largest city.

Investors pile on record debt to buy record highs - (www.cnbc.com) With stocks near all-time highs, investors are taking on record levels of margin debt, something that could accelerate a decline if the market turns south. Margin levels, or the amount borrowed to purchase securities, climbed to a new record of $401 billion in September, according to NYSE Euronext data released this week. The monthly increase of 4.78 percent was also the largest gain since January. The NYSE figures represent the margin accounts of member firms. "Investors love going on margin in a rising market environment, but when the market declines, it can be extremely painful" says Paul Hickey, co-founder of Bespoke Investment Group. "Don't forget that if you go on margin you also have to pay interest on that loan, and some brokers charge pretty high rates, so you are already starting in the hole."

Exclusive: JPMorgan settlement could cost bank closer to $9 billion - (www.reuters.com) JPMorgan Chase & Co's preliminary $13 billion mortgage settlement with the U.S. government could end up costing the bank closer to $9 billion after taxes, because the majority of the deal is expected to be tax deductible, two sources familiar with the matter said. The deduction also means the government is getting less than it appears in this deal. Banks can often deduct legal settlements from their taxes, but cannot get tax benefits from penalties for violating laws.

Bank of America to cut 3,000 mortgage jobs: Source - (www.cnbc.com) Bank of America is looking to cut 3,000 mortgage jobs before the end of the year to cope with declines in refinancing and in its portfolio of delinquent home loans, according to a source. About 1,200 mortgage employees received notice that their position would be eliminated on Thursday. A majority of the 3,000 cuts will come from temporary contractors, though full-time employees will also be laid off, said the source. A Bank of America spokesman did not immediately respond to a request for comment.





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