Sunday, June 1, 2014

Monday June 2 Housing and Economic stories


Mark Zuckerberg’s Newark schools cash drop: “Everybody got paid but Raheem still can’t read” - (www.salon.comSo what happened to the $100 million that Mark Zuckerberg pledged four years ago to support New Jersey Gov. Chris Christie and Newark Mayor Cory Booker’s ambitious effort to “fix” the Newark public school system? The short answer: The money has been spent, mostly on labor contracts and consultant fees, and the Newark school district is still a disaster zone. The long answer is contained in Dale Russakoff’s epic investigative report in the New Yorker “Schooled”. Published the day before a Newark mayoral election that will choose between representatives of the teachers unions and the educational reform movement, Russakoff’s piece is a fascinating deep dive into the complexities of achieving reform in one of the worst-performing school districts in the country. It’s a story about charter schools, political ambition, race and poverty. It’s a story about a problem without an easy solution. Both Booker and Christie come out looking less than spectacular, as they abandon Newark to focus on their own political careers. (Booker is now a senator and Christie wants to be president.) But what about Zuckerberg? What can we learn from his first major foray into philanthropy? No. 1: An awful lot of money went to people who weren’t directly involved with teaching kids in Newark:

[Bloomberg] Russia Warns of ‘Deep’ Ukraine Crisis as Gas Deadline Set - (www.bloomberg.com) The rebels will start an “anti-terrorist operation” against the Ukrainian military if they refuse to leave Donetsk within 48 hours, the head of the separatist group, Denis Pushilin, said by phone yesterday. Russian gas-export monopoly OAO Gazprom informed Ukraine it must pay in advance for gas by June 2 and will receive only those supplies it pays for, risking a cutoff, company spokesman Sergei Kupriyanov said in an e-mailed statement today. Ukraine owes $3.5 billion for fuel delivered in 2013 and through April this year, Gazprom Chief Executive Officer Alexey Miller said. Ukraine, which depends on Russia for half of its gas consumption, has an opportunity to pay, as it received the first $3.2 billion of an international aid package last week, Medvedev said. Stopping shipments to Ukraine may have an effect on the rest of Europe because about 15 percent of theregion’s gas supply travels through the country’s Soviet-era pipelines.

Bundesbank ready to support ECB action if it is needed - sources - (www.reuters.com) The Bundesbank is ready to support European Central Bank policy action if it is needed and this is not new, two Bundesbank sources said on Tuesday. Policymakers are looking at all relevant data, and inflation forecasts for 2016 are important but not the only decisive figure, the sources said. ECB President Mario Draghi said last Thursday the bank is ready to take action next month to boost the euro zone economy if updated inflation forecasts merit it. "We have always said that we are willing to act if this is really needed," a high ranking Bundesbank source said. The second source at the German central bank confirmed this. Earlier, The Wall Street Journal, citing a person familiar with the matter, reported that the Bundesbank was willing to back an array of stimulus measures from the ECB next month, including a negative rate on bank deposits and purchases of packaged bank loans if needed to keep inflation from staying too low.

EU likely to block any UK intervention in AstraZeneca bid - lawyers – (www.reuters.com) The European Commission would probably block any attempt by the British government to intervene in Pfizer's (PFE.N) proposed takeover of AstraZeneca (AZN.L) as Brussels itself would rule on a deal of that size, competition lawyers say. AstraZeneca has rejected the $106 billion (62.5 billion pounds) bid to create the world's largest pharmaceuticals business. However, Pfizer is still pursuing its British rival, and political pressure is growing on Prime Minister David Cameron to show he can protect jobs should the New York-based company prevail. Cameron initially signalled he would not interfere in the bid. However, the Conservative leader - who faces a parliamentary election this time next year - now says he wants further commitments from Pfizer before giving his blessing to any takeover of Britain's second largest drugs group.

A Rescue That Worked, but Left a Troubled Economy - (www.nytimes.com) The mortgage market was starting to come apart on Aug. 16, 2007, when Federal Reserve policy makers gathered for an emergency videoconference. The worst of the financial crisis was more than a year away, but big problems were emerging. As the officials debated how to help, Jeffrey Lacker, the president of the Richmond Fed, expressed alarm that the planned public statement said nothing about the risk of inflation. “Did I miss something?” he asked in a derisive tone, as Timothy Geithner recalls in his new memoir. “No,” Ben Bernanke, the Fed chairman, said simply. In retrospect, Mr. Lacker’s concern was spectacularly misplaced. He was worried that the Fed’s efforts to help the economy could overheat it and unleash inflation. Instead, the economy was on the brink of the worst downturn in 70 years. Yet Mr. Lacker said something else during that meeting that looks more prescient – a concern Mr. Bernanke, Mr. Geithner and other crisis fighters of the last seven years have never successfully addressed: “We could easily be portrayed as helping banks make a lot of money on this.”





No comments: