Tuesday, September 9, 2014

Wednesday September 10 Housing and Economic stories


Argentina’s Peso Weakening at Fastest Pace Since January - (www.bloomberg.com) First came the default, then a proposed debt swap aimed at circumventing a U.S. court ruling that could normalize Argentina’s relations with foreign investors. Now traders foresee a devaluation for the second time this year. Argentina’s peso sank 1.6 percent this week to 8.4153 per dollar, the biggest drop since the government devalued the currency 15 percent in the week ended Jan. 24. In the black market, where Argentines go to avoid government limits on purchases of U.S. currency, the peso weakened to a record 13.95 per dollar. Argentines are demanding more hard currency after the government proposed exchanging overseas debt into notes governed by local law. The plan means it’s less likely President Cristina Fernandez de Kirchner will negotiate a deal with holdout creditors that would lift the court order that has prevented the country from servicing its obligations, according to Bank of America Corp. Prolonging the default would then restrict Argentine borrowers’ access to international markets, putting pressure on policy makers to allow the peso to weaken as dollars become scarce.

Too Much Corn With Nowhere to Go as U.S. Sees Record Crop - (www.bloomberg.com) The ripening corn and soybean fields stretch for miles in every direction from Dennis Wentworth’s farm in Downs, Illinois. As he marveled at his best-yielding crops ever, he wondered aloud where the heck he’ll put it all. “Logistics are going to be a huge problem for everyone,” the 62-year-old grower said, adding that he has invested in boosting output rather than grain bins. When harvesting starts in a few weeks, Wentworth expects his 150-year-old family farm to produce 10 percent more than last year’s record. “There are going to be some big piles of grain on the ground this fall.” Prospects of bumper harvests sent Chicago futures tumbling into bear markets last month, two years after a drought eroded output and sparked the highest prices ever. Cheaper grain is bolstering profit for buyers including Tyson Foods Inc. and Archer-Daniels-Midland Co. (ADM), encouraging some cattle producers in the Great Plains to expand herds, and eroding income for farmers who say increased output will make up for some of the slump.

Buffett’s Lapses Highlight Growing Pains With Compliance - (www.bloomberg.com) The world’s greatest investor could use some help with record keeping. In the past two weeks, Warren Buffett’s Berkshire Hathaway Inc. said it missed filing deadlines for investments in Dow Chemical Co. and wallboard maker USG Corp. The latter resulted in an $896,000 penalty. Buffett, 83, has boasted for years about running Berkshire with a shoestring staff and delegating responsibilities to the heads of operating units like Geico and railroad BNSF. Yet the mistakes raise questions about whether his management approach is suited to an era of increased reporting requirements. “These are some of the growing pains that come from having a trust-based culture in a world that requires compliance procedures,” Brian Tayan, a researcher at Stanford Graduate School of Business who has studied Berkshire’s governance, wrote in an e-mail. “Shareholdershave to make the assessment of whether these filing violations matter to them.”

Is Portugal Next In Line For Wealth Confiscation? - (www.zerohedge.com) The pattern should be seared in your memory by now. If you fail to recognize it, you could be struck with a huge financial blow. It’s a pattern that has played out over and over throughout history: a government gets into financial trouble, then denies there’s a problem, which is followed by a surprise wealth grab. That’s exactly what happened when bank deposits in Spain and Cyprus were raided. We’ve also seen retirement savings confiscated in some form in Poland, Portugal, and Hungary. Capital controls have been imposed in Cyprus and Iceland. Of course these aren’t the only examples of blatant government thievery. These examples are just within Europe and just within recent years. They can and will happen anywhere.

2nd co-owner of slaughterhouse facing charges over bad meat - (www.q13fox.com) A second former co-owner of the California slaughterhouse involved in a recall of nearly nine million pounds of meat was charged with knowingly processing and distributing meat from cancerous cows, court documents released this week say. Robert Singleton, co-owner of the Rancho Feeding Corporation in Petaluma, was primarily responsible for purchasing cattle and loading shipments for distribution, prosecutors say. He is charged with distributing "adulterated, misbranded, and uninspected" meat, according to the documents. Singleton jointly owned the meat plant with Jesse J. Amaral Jr., the former president and general manager who is also known as also known as "Babe Amaral."





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