KeNo's Housing and Economic Portal: Friday March 13 Housing and Economic stories

TOP STORIES:

A college with a $94 million endowment is shutting its doors, and people in higher ed should be scared - (www.businessinsider.com) A women's liberal arts college in Virginia announced Tuesday that the spring 2015 semester would be its last — even though the school still has a $94 million endowment. Sweet Briar College — located near Lynchburg, Virginia — will close "as a result of insurmountable financial challenges," the school said in a statement. Sweet Briar administrators cited several trends that informed the decision to close, including the declining number of female students interested in all-women colleges and the dwindling number of students overall interested in small, rural liberal arts colleges. Last year, Bloomberg Businessweek reported that small, private US colleges were in a "death spiral" in light of dropping enrollment rates. This decline comes amid competition from cheaper online colleges and community colleges, which are enticing to students in a job market that's weaker than it once was.

Greeks bearing grudges rip up Brussels diplomatic rulebook - (news.yahoo.com) Strapped for cash and under pressure to deliver on reforms, Greece's new radical government has ruffled feathers in Brussels by not respecting the diplomatic niceties of the negotiating table. From 40-year-old Prime Minister Alexis Tsipras downwards, Greek officials have gone into EU meetings in fighting mood, their hard talk taking many by surprise and leaving some aghast. Tsipras startled fellow European leaders on Saturday when he spoke of a "trap by aggressive conservative forces" led by an "axis" of Spain and Portugal to undermine the month-old Greek government by cutting off EU funds. Tsipras' outburst was termed "unusual foul play" by Berlin, and German Finance Minister Wolfgang Schaeuble this week told the broadcaster ARD: "Greece has made its position worse with a rhetoric that is difficult for someone on the outside to understand."

Rival of imploding women's college tells its students not to panic - (www.businessinsider.com) Unsurprisingly, similar colleges are taking steps to assure students that their schools are financially safe and stable. Hollins University — a small, all-women's college that is one of Sweet Briar's biggest rivals — released a somewhat boasting statement Tuesday to assure students that the two "have historically been very different schools." Read the Hollins University statement in full below: We are saddened to learn that Sweet Briar College has announced its intention to close at the end of the current semester. While Hollins and Sweet Briar have enjoyed a lively rivalry for decades, the foundation of our relationship with one another has always been rooted in a strong spirit of sisterhood. However, Hollins and Sweet Briar have historically been very different schools.

Sahara India Defaults on Luxury Hotel Loans From Bank of China - (www.bloomberg.com) Sahara India Pariwar defaulted on loan agreements with Bank of China Ltd. that were secured against three luxury hotels in the U.S. and U.K., resulting in the recent appointment of an administrator to sell the Grosvenor House hotel in London. Sahara, which is controlled by financier Subrata Roy, said there had been “technical breaches” of financial covenants on loans from Bank of China for the Plaza and Dream Downtown hotels in New York, according to an e-mailed statement released on Tuesday evening in India. As a result of cross-collateral, the loan on the Grosvenor hotel in London “also is being treated under default,” Sahara said in the statement. A Beijing-based spokeswoman for Bank of China wasn’t immediately able to comment. Deloitte LLP said on Monday it was appointed as administrator for Sahara Grosvenor House Hospitality Ltd., which owns the leasehold title to the London hotel, located on London’s Park Lane. It is working with property consultant Jones Lang LaSalle Inc., and is seeking about 500 million pounds ($770 million) for the property.

Ukraine agrees tough austerity package to gain $17.5bn IMF bailout - (www.rt.com) The Ukrainian parliament has approved amendments the 2015 budget that sees drastic pension cuts and energy bills tripling. The changes are needed to comply with the terms of the agreed $17.5 billion IMF bailout package. The budget amendments were passed at an extraordinary meeting on Monday with a majority of 273 votes, well above the minimum 226 votes necessary to pass legislation. According to the changes, Ukraine’s budget deficit increases from 3.7 percent to 4.1 percent of GDP. Amendments envisage the expenses increasing by about $1.3 billion (35 billion hryvnia), with a 21.7 hryvnia per dollar exchange rate. At the same the cabinet plans to cut government funding of Naftogaz in 2015 by 5.8 percent to 29.7 billion hryvnia. The changes also see a cut in pensions for retired people by 15 percent. Moreover, pension payments for people working in the tax, customs and regulatory bodies, will be suspended. The job tenure for people working in hazardous and heavy industries will be gradually increased from 20 years to 25 years for men and from 15 years to 20 years for women. The amended budget provides for increasing the rent charged for gas production from 20 percent to 70 percent.

OTHER STORIES:

Good luck getting into UCLA if you're not from California - (www.businessinsider.com)

Fed Sheds Light on Turbulent ’09 With Publication of Transcripts - (www.bloomberg.com)
U.S. Companies Are Stashing $2.1 Trillion Overseas to Avoid Taxes - (www.bloomberg.com)
The Price of Oil Is About to Blow a Hole in Corporate Accounting - (www.bloomberg.com)
ECB Glimpse of Cyprus Debt Mountain Shows Limits of Bank Cleanup - (www.bloomberg.com)