Thursday, January 14, 2010
Real Homes of Genius: A Foreclosure Process Lasting over Two Years in Pasadena. What is the Estimated Value of Shadow Inventory in Pasadena?
US Will Hit 94% Debt to GDP Ratio Next Year, Surpassing the Level Where Debt Starts Reducing Economic Growth
Ambrose-Evans Pritchard notes:
Fitch expects the combined state and federal debt to reach 94pc of GDP next year, up from 57pc at the end of 2007. Federal interest costs will reach 13pc of revenues, meaning that an eighth of all taxes will go to service debt.
The figure of 94% is dramatic given that two top American economists – Carmen Reinhart and Kenneth Rogoff – wrote last month :
The relationship between government debt and real GDP growth is weak for debt/GDP ratios below a threshold of 90 percent of GDP. Above 90 percent, median growth rates fall by one percent, and average growth falls considerably more. We find that the threshold for public debt is similar in advanced and emerging economies… (more)
Many Maine families have owned and maintained camps or summer cottages through joint tenancy deeds, which permit them to keep the property within their families.
But as Maine Public Radio reports, the state would get the power to seize those properties in some cases. Health and Human Services Commissioner Brenda Harvey says the change would allow the state to be reimbursed for its costs if one of the property owners uses Medicaid funding to pay for long-term care.
Under present law, those properties can't count as an asset toward their expenses. (link)
The shortfall brings the total deficit for the first quarter of fiscal year 2010 to $388.5 billion, up from $332 billion during the same period last year.
For the most recent job opening data, according to the JOLT survey by the BLS, there were 2.4 million job openings in November of 2009. Now this might seem like a large number but it is not. Consider the fact that we have 15.3 million Americans that are still officially labeled as unemployed. And this is probably one of the main issues in this recession now. Even though massive layoffs have seemed to stop, it would appear that even less people are hiring today than back in March when the economy was falling into the economic abyss. What we can garner right now is the banking sector with record profits is now able to milk American workers even more since one of the biggest line items is labor and many companies are chopping this high cost item down.
This is rather obvious when we look at the actual job opening rate from the start of the recession: (more)