Sunday, September 28, 2014

Monday September 29 Housing and Economic stories


Foreclosure activity reverses course, rising again - (www.cnbc.com) After falling for four years straight, the number of U.S. properties scheduled for foreclosure auction in August was higher than it was a year ago, according to a new report from RealtyTrac, a foreclosure sales and analytics company. The rise was very small, just one percent, but it was, nonetheless, a warning that the foreclosure crisis is not entirely over. "The messy business of cleaning up the distress lingering from the housing bust continues in many markets," said Daren Blomquist, vice president at RealtyTrac. "The annual increase in foreclosure auctions — the first since the robo-signing controversy rocked the foreclosure industry back in late 2010 — indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both."

Dem congressmen's hypocrisy on minimum wage – (what-is-is.blogspot.com) Seldom do I quote the far-right Daily Caller, much less agree with it, but never say never. (HT: AL).  I tells it like it is, and lets the chips fall where they may. Check it [emphasis mine]: According to a new study by the Employment Policies Institute (EPI), only four percent of the 210 lawmakers who pledged their allegiance to a bill raising the minimum wage pay their interns. The Fair Minimum Wage Act would increase the federal minimum wage from $7.25 an hour to $10.10 an hour. EPI found that 96 percent of its House and Senate supporters give their interns a minimum wage of zero. For shame, my liberal comrades!  Seriously though, I've written before about the institutional elitism of unpaid professional internships. There ought to be a law against them, except in very special circumstances.  If something is worth doing, it's worth paying for; if it's worth paying for, then unpaid interns shouldn't be allowed to do it. They displace people who are looking for jobs but can't afford to work for free.  

Santander weighs as European shares fall for fourth session - (www.reuters.com) Shares in Santander fell 1.7 percent after Emilio Botin, who transformed the firm from a small domestic lender into the euro zone's biggest bank, died of a heart attack on Tuesday night. The stock knocked nearly 3 points off the Euro STOXX 50 index of euro zone blue chips, which was down 13.01 points, or 0.4 percent, at 3,232.42 points at 0751 GMT. "He was perceived as the man who built Santander into a global bank," Javier Bernat Valenzuela, an analyst at Beka Finance in Madrid, said. "He has been the person who has looked after the bank for the last 30 years but you have to realise there will not be significant changes because the bank is pretty well structured."

Struggling Homeowners Are Shouldering The Responsibility Of U.S. Deficit - (www.mfi-miami.com) No Fannie/Freddie Mortgage Write-Downs Means More Cash For Uncle Sam. Since the housing crisis began in 2007, the major banks and the major servicers have paid nearly $130 Billion in fines and court settlements to settle mortgage fraud issues with Fannie Mae and Freddie Mac. These settlements have brought Fannie Mae and Freddie Mac out of insolvency and on the path to profitability with a projected profit of $180 billion for 2014 with a projected profit of $190 Billion to $250 Billion in 2015.
Unfortunately, the likelihood of underwater homeowners receiving any type of a “thanks for bailing us out” gift from Fannie Mae or Freddie Mac in the form of a principal write downs have yet to materialize. Advocacy groups had hoped that principal write-downs would come after former Democratic Congressman, Mel Watt took the helm of the Federal Housing Finance Authority, the government agency that oversees Fannie Mae and Freddie Mac,

Exclusive: Japan, U.S. discussing offensive military capability for Tokyo - Japan officials - (www.reuters.com)  Japan and the United States are exploring the possibility of Tokyo acquiring offensive weapons that would allow Japan to project power far beyond its borders, Japanese officials said, a move that would likely infuriate China. While Japan's intensifying rivalry with China dominates the headlines, Tokyo's focus would be the ability to take out North Korean missile bases, said three Japanese officials involved in the process. They said Tokyo was holding the informal, previously undisclosed talks with Washington about capabilities that would mark an enhancement of military might for a country that has not fired a shot in anger since its defeat in World War Two. The talks on what Japan regards as a "strike capability" are preliminary and do not cover specific hardware at this stage, the Japanese officials told Reuters.




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