Monday, June 2, 2014

Tuesday June 3 Housing and Economic stories


Student loan debt dragging on young households - (www.cnbc.com) Younger Americans who are still paying off student loans have a lot less money—and a lot more overall debt—than those who don't have any student loans, a new report finds. It's not clear why, but the report from Pew Research Center said one possible explanation is that people paying off hefty student loans have trouble gaining financial footing because they are bogged down by those college bills. Another possibility is that, as more people go to college, the wealth gap between those who borrow for college and those who don't is widening. The Pew report found that nearly 4 in 10 households headed by a person under 40 has some student loan debt, a record high. The median student loan debt for that group was about $13,000. The difference between those households and the ones with no student loan debt was striking.

2 Banking Giants Implore US Authorities to Go Easy - (www.nytimes.com) Two of the world’s biggest banks, facing the threat of criminal charges, are mounting final bids for leniency. To avoid the fallout from pleading guilty — no giant bank has done so in more than two decades — BNP Paribas and Credit Suisse made last-ditch appeals to prosecutors and regulators in recent weeks, according to people briefed on the talks. The private meetings came after prosecutors sought guilty pleas from the parent companies of both banks: BNP of France over doing business with countries like Sudan that the United States has blacklisted, and Credit Suisse for offering tax shelters to wealthy Americans. While BNP and Credit Suisse proposed more modest guilty pleas from their subsidiaries rather than parent companies, the people briefed on the talks said, prosecutors appeared to balk at those overtures, challenging broader public concerns that banks have grown so important to the economy that they are effectively “too big to jail.” In the case of Credit Suisse, which recently created a subsidiary to house the “U.S. offshore business,” prosecutors have privately indicated that they are unwilling to charge the newly formed unit. The bank is now expected to strike a deal with prosecutors as soon as this week, the people briefed on the talks said.

Ukraine Strives to Fix Crisis as Ambush Shows War Closer - (www.bloomberg.com) Ukraine urged Russia to condemn separatists in its eastern regions after seven government troops died in an ambush in a signal that the ex-Soviet republic may be sliding closer to outright civil war. After weeks of skirmishes between government troops and rebels in Ukraine’s eastern Luhansk and Donetsk regions, more than 30 attackers struck a convoy yesterday near the city of Kramatorsk, killing six paratroopers. One of the eight who were wounded also died on the way to the hospital, Interfax reported. Acting Defense Minister Mykhaylo Koval said Ukraine’s east was embroiled in an “undeclared war with Russia.” The ambush was the rebels’ deadliest attack against Ukraine’s military since they began a campaign to secede after Russia annexed Crimea in March. It followed a pact by activists in Luhansk and Donetsk to join forces and signaled the conflict is intensifying, said Dmitry Orlov, director general of the Agency for Political and Economic Communications in Moscow.

Vietnam mobs set fire to foreign factories in anti-China protest - (www.reuters.com) Thousands of Vietnamese set fire to foreign factories and rampaged in industrial zones in the south of the country in an angry reaction to Chinese oil drilling in a part of the South China Sea claimed by Vietnam, officials said on Wednesday. The brunt of Tuesday's violence, one of the worst breakdowns in Sino-Vietnamese relations since the neighbors fought a brief border war in 1979, appears to have been borne by Taiwanese firms in the zones in Binh Duong and Dong Nai provinces that were mistaken for Chinese-owned companies. A police official in Binh Duong province, speaking by telephone, said about 200 people had been arrested. "We are working on other areas in the province ... We haven't seen any injuries," the official said. Photographs posted on social media sites and blogs, purportedly of the aftermath of the violence, showed blackened shipping containers, smashed windows and several burnt out vehicles that had been overturned.

 New Mexico county defies U.S. government over cattle grazing - (www.reuters.com) A rural New Mexico county has voted to defy the federal government and give a rancher's cattle access to a watering hole fenced off by the Forest Service in the latest dispute over federal control of public land in the U.S. West. Commissioners in Otero County voted 2-0 on Monday night to authorize Sheriff Benny House to open a gate allowing nearly 200 head of cattle into the 23-acre area despite Forest Service restrictions. A third commissioner was out of town for the vote. "We are reacting to the infringement of the U.S. Forest Service on the water rights of our land-allotment owners," Otero County Commissioner Tommie Herrell told Reuters. "People have been grazing there since 1956." But a U.S. Forest Service spokesman said the fence has also been there for decades, protecting a delicate ecosystem surrounding a natural spring as well as an endangered species of mouse from being trampled by cattle.





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