Thursday, May 22, 2014

Friday May 23 Housing and Economic stories


A Landlord's Letter Reveals The Depressing Truth About The San Francisco Rental Market
- (www.businessinsider.com) Renting an apartment is no easy or cheap task. There are broker fees, security deposits, credit checks, and the list goes on and on. It's enough to make you tired just thinking about it, let alone going through with the process. But some San Francisco residents got an extreme punch in the gut when this letter was slipped under their doors last month: Andrew Dudley, who writes for Hoodline, says "a reader who wishes to remain anonymous sent in the above letter, which was slipped under the door of every unit in his rent-controlled building near Haight and Fillmore [in San Francisco] recently."
The letter reads: The building policy/requirement of a current apartment applicant/resident is that they are able to establish that their minimum annual income is at least $100,000 - additionally required is a minimum FICO credit score of 725. We are not able to accept in our minimum income calculation any form of 'guarantor' or similar form of 'guarantee' offered of account of the apartment/resident applicant, by a friend of family member nor any other person or legal entity. Of course, more is required to qualify an apartment/resident/applicant, than income and credit score; but a minimum income and credit score requirement is a basic starting point. 

Office Depot to close at least 400 stores - (www.usatoday.com) Office Depot said it plans to close at least 400 stores by the end of 2016 that will result in $75 million annual savings. The company's merger with OfficeMax resulted in an overlap of retail locations that needed to be consolidated, the company said. Office Depot expects to close 150 stores this year, mostly in the fourth quarter, with the remaining closures expected to occur by the end of 2016. Office Depot Chairman and CEO Roland Smith said the move will start contributing to earnings beginning next year. "One of our 2014 critical priorities is to improve our store footprint in North America to best meet customer demand, ensure we are appropriately positioned in the markets we serve, and align with our unique selling proposition which we are developing this year," Smith said in a statement released by the company.

AIG Declines After Net Income Falls on Claims Costs – (finance.yahoo.com)  American International Group Inc. (AIG), the largest commercial insurer in the U.S. andCanada, posted the biggest decline in the Standard & Poor’s 500 Index after first-quarter profit dropped on higher claims costs. AIG slipped 4.3 percent to $50.45 at 12:11 p.m. in New York, the most since November. The fall erased the stock’s gain for the year. First-quarter net income slid 27 percent to $1.61 billion, or $1.09 a share, as the property-casualty business posted a $97 million underwriting loss, the New York-based insurer said yesterday after markets closed. AIG said the operation paid out $1.01 in claims and expenses for every premium dollar it took in, compared with costs of 97.3 cents per dollar a year earlier. “Weaker underwriting results are the key risk for AIG, and seeing them crop up is a setback,” Randy Binner, an analyst at FBR Capital Markets, said in a research note yesterday. AIG also offers life insurance, retirement products and mortgage guarantees. Operating profit at the life and retirement unit climbed to $1.42 billion from $1.39 billion a year earlier, as assets under management increased and sales rose. The mortgage insurer, United Guaranty Corp., reported an 85 percent increase in earnings to $76 million.

Ruble Plunge Hitting Russians Speeds Slide to Recession - (www.bloomberg.com) As Russia’s central bank struggles to shield the ruble from the standoff over Ukraine, Vasily Isaev says it may already be too little, too late to save his Italian vacation plans. “If you get your salary in rubles, a trip to the beach in Europe is going to be difficult this year,” said the 37-year-old sales manager, looking up from his English homework in the park near Tverskoy Boulevard in central Moscow. “We’re going toBulgaria instead of Italy this year and we’re renting an apartment a little further away from the sea.” Consumers like Isaev, spending more than a few months ago to fill a shopping cart with everyday items, may be squeezed most by the currency’s decline as inflation quickens. Wobbling consumption threatens to knock out another pillar of the economy reeling from sanctions that stoked capital flight. Unruffled by the central bank’s emergency measures, the ruble has depreciated as an expanding list of sanctions in response to President Vladimir Putin’s actions in Ukraine sparked a selloff of assets. The ruble has weakened 7.2 percent this year, the third-worst performance after the Argentine and Chilean pesos among 24 emerging-market currencies tracked by Bloomberg. The currency fell 0.5 percent over the past month.

'Eroding middle' puts US farming in fewer hands - (www.cnbc.com) American farming is changing, according to the recently releasedagriculture census—and the change comes with a warning from the U.S. Secretary of Agriculture, Tom Vilsack. Speaking at a symposium at Iowa State University on May 2, the day the census came out, Vilsack said the U.S. faces an "eroding middle" when it comes to farming, and that a small number of large farm operations "produces the vast majority of the nation's food." The U.S. Department of Agriculture census seems to back up Vilsack's complaint and his stated "need to expand the rural economy from the middle out." Large farms with over $1 million in sales account for only 4 percent of all farms, but 66 percent of all sales. That's up considerably from 1 percent of all farms and 50 percent of all sales a decade ago. However, three quarters of all U.S. farms gross only $50,000 a year and currently account for only 4 percent of product sales. 






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