Thursday March 27 Housing and Economic stories

TOP STORIES:

Banks Enriched by Junk Resist U.S. Regulator Standards - (www.bloomberg.com)  More than five months ago, the Federal Reserve and Office of the Comptroller of the Currency told some of the biggest banks to improve underwriting standards for non-investment-grade loans. The market is showing few signs of tightening as lenders chase lucrative fees. Banks are arranging junk-rated deals that leave companies with debt levels exceeding guidelines set by regulators. Among them: the $1.7 billion of loans led by UBS AG and Deutsche Bank AGlast month to finance KKR & Co.’s purchase of a majority stake in Sedgwick Claims Management Services Inc., and the $700 million loan Credit Suisse Group AG arranged in January for Applied Systems Inc., a maker of software for insurance companies.

NYC Property Tax Change Seen Yielding $4 Billion Windfall - (www.bloomberg.com)  Mayor Bill de Blasio’s vision of raising income taxes to pay for pre-kindergarten and after-school programs would generate $530 million a year. By revamping property taxes -- and taking on some of New York’s richest residents -- he could get eight times as much. De Blasio, a self-described progressive Democrat, was elected on a promise to reduce income inequality in a city where the richest 1 percent took home almost 40 percent of all earnings in 2012. New York’s property-tax structure does little to reduce that divide and may even widen it.

Disney's Magic Kingdom Nears $100 Tickets, and the Crowds Keep Coming - (www.businessweek.com) Walt Disney (DIS) is prying parental wallets open a little wider for that vacation visit to the theme park. The Empire of the Mouse is now charging $99 for a one-day park pass at its Magic Kingdom Park near Orlando, an increase of $4 that comes just eight months after the last price hike. Behind the steadily rising ticket prices is the small world of supply and demand. People keep flooding Disney’s U.S. theme parks, notwithstanding steeper costs. The company reported a 16 percent increase in operating income, to $671 million, for the most recent quarter at its theme park division as sales rose 6 percent, to $3.6 billion. In Disney’s last fiscal year, theme park income rose 17 percent, to $2.2 billion. The company does not disclose attendance data.

‘Warren Buffett Indicator’ Signals Collapse in Stock Market - (www.moneynews.com) It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts. “We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."  Unfortunately Spitznagel isn’t alone. “We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”  Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”  Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment. 

Allegedly Corrupt Politician Seems To Be Planning A Golf Fundraiser — Without The Golf - (www.businessinsider.com)  New York State Sen. Malcolm Smith, who is currently under investigation for federal corruption charges, is holding an unusual fundraiser later this month. On his campaign website, Smith is advertising a "virtual golf outing in his honor" on March 24. Participation in the event ranges from a $100 donation, which gets a donor "teesign/friend" status, to $500, the level at which donors can become "sponsors." However, as Capital Tonight's Liz Benjamin points out, it's not clear if there's any "golf" involved -- or any other activity for that matter. There is no listed location for the event and no other details beyond a picture of an unnamed golf course and the golf-themed designations for donations of various sizes. 

OTHER STORIES:

Staples to shut 225 stores in North America as sales fall - (www.reuters.com)

EU tells Italy, France to up reforms, trim deficit - (finance.yahoo.com)  

Kerry Makes Push to Ease Ukraine Tension in Lavrov Talks - (www.bloomberg.com)  

China’s Credit Expansion Trails Estimates Amid Risks of Slowdown - (www.bloomberg.com)
Carney Faces Leadership Test as Currency Scandal Snares BOE - (www.bloomberg.com)  

Merkel raps Putin as Russian forces tighten grip on Crimea - (www.reuters.com)  

Japan’s Economy Expands Less Than Initially Estimated in 4Q - (www.bloomberg.com)  

Li Target Challenged by China Exports, Producer Prices - (www.bloomberg.com)