Financial life in a big town

July 30, 2011

Senate rejects debt bill

Filed under: Loans, online — Tags: , , , — Silver @ 5:24 pm

In an unforgiving display of partisanship, the House passed emergency legislation Friday night to avoid an unprecedented government default and the Senate scuttled it less than two hours later.

The final outcome _ with the White House and Senate Democrats calling anew for compromise while criticizing Republicans as Tuesday’s deadline drew near _ was anything but certain.

“We are almost out of time” for a compromise, warned President Barack Obama as U.S. financial markets trembled at the prospect of economic chaos next week.

The House vote was 218-210, almost entirely along party lines, on a Republican-drafted bill to provide a quick $900 billion increase in U.S. borrowing authority _ essential to allow the government to continue paying all its bills _ along with $917 billion in cuts from federal spending.

It was rewritten hastily overnight to say that before any additional increase in the debt limit could take place, Congress must approve a balanced budget-amendment to the Constitution and send it to the states for ratification. That marked a concession to tea party-backed conservatives and others in the rank and file who had thwarted House Speaker John Boehner’s attempt to pass the bill Thursday night.

“Today we have a chance to end this debt limit crisis,” Boehner declared, his endgame strategy upended by rebels within his own party.

But the changes he made to the House GOP bill further alienated Democrats. And they complicated prospects of a compromise that could clear both houses and win Obama’s signature by next Tuesday’s deadline.

At the other end of the Capitol, Senate Democrats scuttled the measure without so much as a debate on its merits. The vote was 59-41, with all Democrats, two independents and six Republicans joining in opposition.

Source

July 29, 2011

Ameren’s nuclear plans stall

Filed under: Business, economics — Tags: , , , — Silver @ 12:24 am

For weeks this spring, a coalition of Missouri power companies and consumer groups worked to hammer out compromise legislation that would pave the way for a second nuclear plant in Callaway County.

Though the bill never made it to a vote in the session’s final hours, it raised hopes that, after years of planning and debate, the bill could move forward. The compromise, which some hoped could be ratified in a special session, would allow Ameren Missouri to charge customers up to $45 million for an early site permit in exchange for certain consumer protections.

But two months later, the supposed compromise has apparently evaporated.

“I think we are stuck,” said Sen. Brad Lager, R-Savannah, who sponsored the legislation that ultimately died online payday loan lenders. “I think it will take time and term limits to potentially bring the change needed to break through the gridlock.”

The impasse seemingly has little to do with nuclear power or the $45 million that Ameren wants to pursue a permit from the Nuclear Regulatory Commission. The main obstacle, rather, is a separate proposal to overhaul the state’s renewable energy mandate, which legislators combined with the nuclear permit issue as the session wound down.

The proposed measure would have reduced the amount of clean energy that utilities are required to add and capped the rate impact for industrial power users at $100,000

July 27, 2011

Fed survey: Growth slows across much of the US

Filed under: money, stocks — Tags: , , , — Silver @ 1:44 pm

The economy worsened in about half the country earlier this summer because of weak home sales and signs of a slowdown in manufacturing.

A Federal Reserve survey said Wednesday that seven of the Fed’s 12 bank regions reported slower growth in June and early July compared with the spring. That’s a worse showing than in the previous survey.

Of the remaining five districts, four reported modest growth. A fifth, the Minneapolis district, said its economy was disrupted by bad weather and the shutdown of Minnesota’s state government.

The job market remained weak in most districts, the report said. Employers added few jobs in June, the government said earlier this month.

Droughts and severe flooding badly hampered seven districts with large agricultural sectors, the report said.

Manufacturing output rose overall. But many districts reported only “steady or slowing” growth, the Fed’s report said. Only two districts reported rising manufacturing activity. Companies in three districts _ Philadelphia, Richmond and Atlanta _ reported slower growth.

The overall weak picture of the national economy echoes recent data on hiring and manufacturing. Economists expect growth for the April-June quarter, which will be reported Friday, to fall below 2 percent, the second straight quarter of anemic expansion.

The report, known as the “Beige Book,” is based on anecdotal information gathered by officials at the 12 Fed regional banks. It is released eight times a year and provides an on-the-ground snapshot of the economy. Wednesday’s report covered the roughly seven weeks between May 27 and July 15.

Source

July 25, 2011

Mangia Italiano sues the Mangia Mobile over name

Filed under: Uncategorized, legal — Tags: , , , — Silver @ 6:28 pm

Source

July 24, 2011

Top local public companies: Revenue

Filed under: marketing, stocks — Tags: , , , — Silver @ 3:40 am

Rank Company Revenue

1 Express Scripts* $45 billion

2 Emerson* $21 billion

3 Monsanto* $10.5 billion

4 Reinsurance Group of America* $8.3 billion

5 Ameren* $7.6 billion

6 Charter Communications* $7.1 billion

7 Peabody Energy* $6.9 billion

8 Centene* $4 pay day loan lenders.4 billion

9 Energizer Holdings $4.2 billion

10 Ralcorp Holdings $4.0 billion

* Fortune 500 member

Based on fiscal year 2010 data

Source

July 22, 2011

Obama makes debt case at town hall Friday

Filed under: Banks, Uncategorized — Tags: , , , — Silver @ 10:36 am

Less than two weeks away from an unprecedented government default, President Barack Obama sought Friday to pressure House Republicans to come around to a deal that he insisted must include new taxes as well as unpalatable spending cuts.

At the same time, even with no clear end in sight to negotiations that have dragged on for weeks, the president asserted that the U.S. has never defaulted on its debt and won’t do so now.

“The United States of America doesn’t run out without paying the tab. We pay our bills. We meet our obligations,” Obama said at a town hall meeting at the University of Maryland, College Park.

Asserting that the American people as well as many in Congress are on board with his approach of mixing higher taxes for some with steep spending cuts, the president said, “The only people we have left to convince are some folks in the House of Representatives and we’re going to keep working on that.”

House conservatives have resisted higher tax revenues and some Democrats have come to fear Obama would give ground and agree to a deal with spending alone. Obama made clear that taxes needed to be in the mix.

“If we only did it with cuts, if we did not get any revenue to help close this gap between how much money’s coming in and how much money’s going out, then a lot of ordinary people would be hurt and the country as a whole would be hurt and that doesn’t make any sense. It’s not fair,” Obama said.

“This isn’t about punishing wealth, it’s about asking people who’ve benefited the most over the last decade to share in the sacrifice,” the president said.

Source

July 20, 2011

Home sales fell in June, fewer 1st-time buyers

Filed under: Australia, Banks — Tags: , , , — Silver @ 7:32 pm

Fewer people bought previously occupied homes in June, putting this year on pace to be the worst for sales since the housing bust.

Home sales fell 0.8 percent last month to a seasonally adjusted annual rate of 4.77 million homes, the National Association of Realtors said Wednesday. That’s far below the 6 million homes per year that economists say represents a healthy housing market.

Through the first six months of this year, the sales pace is behind last year’s 4.91 million homes sold _ the weakest sales in 13 years. Sales have fallen in four of the past five years.

The Realtors’ group said a record number of people who signed contracts canceled deals last month. And first-time buyers fell to a smaller share of the market.

Declining home prices have kept many people from selling their houses and taking new jobs in growing areas. They have also made people feel less wealthy and that has reduced the consumer spending that drives about 70 percent of economic activity.

Roughly 16 percent of home deals were canceled last month, the highest level since such records began being kept more than a year ago. It was unclear what the chief reason was for the high rate. But some buyers have canceled purchases after appraisals showed that the homes were worth less than the buyers’ initial bids. A sale isn’t final until a mortgage is closed.

First-time homebuyers made up just 31 percent of sales. They normally make up about half of all home sales. First-time buyers are critical to a strong and stable housing market no fax cash advances. They tend to keep their homes for years. What’s more, their purchases of low and moderately priced homes allow sellers to move up to pricier homes.

Bigger down payments, tougher lending rules, high debt and a shortage of desirable starter homes are keeping many would-be buyers away. Even some with good credit and enough money for a down payment are holding off because they are worried home prices will keep falling.

Foreclosures and short sales _ when a lender agrees to sell for less than what is owed on a mortgage _ make up an increasingly large portion of all home sales. And a wave of foreclosures are being held up, either by backlogged courts or lenders awaiting state and federal probes into troubled foreclosure practices.

Re-sold homes are a bargain compared to new homes. The median price of a new home is more than 30 percent higher than the median price for a previously occupied home. That’s twice the normal markup.

A glut of millions of unsold homes is also weighing on prices, forcing sellers to slash their prices in order to grab the attention of potential buyers.

Most economists say home prices will keep falling, by at least 5 percent, through the rest of the year. Many forecasts don’t anticipate a rebound in prices until at least 2013.

Source

July 19, 2011

Wells Fargo 2Q profit leaps 30 pct; defaults drop

Filed under: Australia, lenders — Tags: , , , — Silver @ 8:52 am

Wells Fargo & Co. says its second-quarter profit rose 30 percent, boosted by a release of reserves set aside to cover souring loans as its customers continued to improve their loan and credit card payments.

The San Francisco bank says its net income rose to $3.73 billion, or 70 cents per share, in the three months ended June 30. Wall Street was expecting 69 cents per share, on average.

Revenue edged down 5 percent to $20.39 billion, just short of analyst estimates for $20.43 billion. Revenue in its largest segment, community banking, fell credit score.

The largest contributor to the quarter’s results came from a $1 billion release from the money set aside to cover uncollected loans and credit card bills, as the amount written off from bad loans dropped.

In premarket trading, Wells Fargo shares added 33 cents to $27.21 per share.

Source

July 17, 2011

Minnesota special session won’t happen Monday

Filed under: Lending rates, money — Tags: , , , — Silver @ 8:08 pm

Minnesota may soon have an end to its government shutdown, but re-starting the machinery of the state will probably take a few days.

Democratic Gov. Mark Dayton and Republican legislative leaders fell short Sunday of their goal of being ready for a special session Monday to finalize a deal struck late last week. They issued a joint statement saying the work “continues to move in a positive direction” but wasn’t over.

Dayton spokeswoman Katharine Tinucci said they didn’t expect to make any more news later in the night.

“Considerable progress has been made,” said the statement, issued Sunday night. “A special session will be called as soon as our work is completed, and all bills have been reviewed and agreed upon.”

If rank-and-file lawmakers sign off on the deal, it will end a shutdown that’s the longest in recent U.S. history.

But for residents whose lives have been disrupted, the relief won’t be immediate.

“It’s not like we can just flip a switch,” said Doug Neuville, a spokesman for the state Department of Public Safety, which has halted renewal of driver’s licenses and vehicle tabs during the shutdown. The computer systems used to issue renewals take time to bring back online, and the services won’t be immediately available, he said.

Same goes for closed rest stops and state parks. State budget office spokesman Jonathan Pollard said those must be cleaned and thoroughly checked before people can use them again. Road construction projects idled by the shutdown are likely to require safety checks before work can resume.

Licensing hang-ups for beer distributors could take several days to unsnarl as well, as returning state workers deal with backlogs that built up during the shutdown.

“It depends on the level to which the services were down,” Pollard said. “If you have an agency that’s mostly been up and functioning, it may be easier than if you have an agency that’s been completely shut down.”

The Dayton administration will likely consider the shutdown officially over once the governor signs new budget bills into law, Pollard said.

It’s not clear yet when that might happen. The governor and Republican leaders agreed late Thursday to the framework of an agreement to end the shutdown, and they spent the weekend trying to fill in the details. Once a session starts, Republican leaders need to get the spending bills through the House and Senate and to Dayton’s desk, which means getting rank-and-file Republicans to sign on to a deal that some will have a hard time with.

One big question after the last shutdown was whether state workers would be able to claim back pay for lost time.

But Michael Kuchta, spokesman for AFSCME Council 5, said a memorandum of understanding between unions and the Dayton administration before the shutdown granted laid-off workers the right to apply for unemployment with the understanding that they couldn’t claim lost pay when recalled.

The state could still face lawsuits, however, from businesses and citizens who decide they were harmed by the shutdown.

Tom Hanson, who was former Gov. Tim Pawlenty’s lead budget negotiator during the 2005 shutdown, said he hoped contingency plans drawn up then would serve the state well now.

“They are better prepared today, in 2011, than we were in 2005,” Hanson said. “There are detailed plans for starting up government after a shutdown.”

Source

July 16, 2011

Scandalized Britain ponders press reform

Filed under: Banks, news — Tags: , , , — Silver @ 3:04 am

Britain has been transfixed by the phone hacking scandal that has shaken its media world. But will it really change the nation’s press?

Much depends on the shelf life of the outcry over alleged skullduggery by journalists working for British papers owned by Rupert Murdoch, who closed a newspaper, dropped a major business deal and agreed to testify before parliament in an attempt to defuse the uproar.

An inquiry authorized by Prime Minister David Cameron and a criminal investigation aim to clear up this particular mess, but reforming the media and untangling corrosive ties between politics and the press, what some call an embedded cultural defect, require the public’s attention in the long term.

Without grassroots pressure, Britain’s press will have less incentive to change.

But there’s a fundamental dilemma: Even as Britons recoil at trashy tabloid tactics, they have bought such papers by the millions _ hungry for juicy gossip obtained by the very illegal means they decry.

Murdoch’s now-shuttered News of the World was, in fact, Britain’s best-selling paper.

“The public’s interest in these matters is fickle to say the least,” said Steven Fielding, professor of political history at the University of Nottingham. “Murdoch is probably thinking, ‘Well, if I can last for about six months, then everything will return back to normal.’”

Fielding said Britons were more concerned about the economy, jobs, services and quality of life, especially at a time when the government is implementing painful austerity measures aimed at getting the country’s finances in order.

Martin Moore, a founder of Hacked Off, a group that seeks full accountability in the phone-hacking allegations, said he was concerned that a “summer hiatus” could cool tempers and chip away at momentum for reform.

“This is a moment and an opportunity to change things,” he said.

In a speech on Thursday, Deputy Prime Minister Nick Clegg said Britain should look beyond the scandal and implement changes that will guarantee freedom of the press, which he described as the “lifeblood” of democracy, but also ensure accountability through robust corporate governance, and a solid framework that fosters diversity of ownership of media organizations.

“I know that there is real fear, among reformers, that this opportunity will pass us by. That there will be plenty of heat, but no light,” Clegg said. “The pessimists have a point. In recent decades the political class has consistently failed to stand up to the media. Seeking to curry favor with powerful media barons or prevent their own personal lives from being splashed across the front pages.”

Indeed, success and failure in British politics has long depended heavily on the blessing of the national press, which is, to put it diplomatically, unkind to those it does not respect. The media delivers judgments with icy, devastating eloquence or, in the case of some tabloids, piles on like bulky athletes in a rugby scrum.

The intimacy and sparring between British politicians and the press go back generations. Stanley Baldwin, then leader of the opposition Conservatives in 1931, was the target of a campaign for his ouster by Lord Beaverbrook, owner of the Daily Express, and Lord Rothermere, owner of the Daily Mail. He blasted their newspapers in a speech.

“They are engines of propaganda for the constantly changing policies, desires, personal wishes, personal likes and personal dislikes of two men,” declared Baldwin, who also served as prime minister. He said the press barons sought “power without responsibility, the prerogative of the harlot throughout the ages.”

The criticism did not induce Beaverbrook and Rothermere to temper their ways, though the latter later bet on the wrong horse with his enthusiastic support for Oswald Mosley, leader of the British Union of Fascists.

Murdoch, on the other hand, has been forced to make concessions, abandoning his bid to take full control of British Sky Broadcasting, a major satellite television operation.

On Friday, Rebekah Brooks quit as chief executive of his embattled British newspapers even though he had previously refused to accept her resignation. The publisher of The Wall Street Journal, who had been chairman of the company’s British newspaper arm during some of the alleged transgressions and had worked for News Corp. for more than five decades, quickly followed suit.

But these headline-grabbing developments mask broader questions about how to balance media freedom with accountability, whether new regulations should be introduced or enforcement of existing laws on corruption and other crimes is sufficient, and to what extent the politicians who now call for an overhaul of the way the media and politics intersect acted as promoters for suspect practices.

Cameron, of the Conservatives, is on the defensive because he had hired Andy Coulson, former editor of the News of the World, as his communications director despite the misgivings of Clegg’s Liberal Democrats, the junior partner in his coalition. Coulson, who was arrested last week, resigned in January as the hacking allegations grew.

Jeremy Black, a professor of history at the University of Exeter, said the scandal was a welcome distraction for political parties that are struggling for answers to economic challenges at home and across Europe, and that broader concerns about a “coarsening of public life” and the salacious nature of large segments of British media coverage are not being addressed.

He cited some of the reporting on Madeleine McCann, a British girl whose disappearance in Portugal in 2007 drew global attention. Her father, Gerry McCann, complained of sensational journalism in the case, and the parents won libel damages from some British newspapers over suggestions that they were responsible for their daughter’s death.

“This is an over-egged crisis,” Black said of the phone hacking affair. “It provides a wonderful opportunity for people, as it were, to express their accumulated grievances.”

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