Daily Digest 9/14 - Wealthy Get Mortgage Help, Where The Bailouts Stand
The U.S. is still the number one manufacturer in the world, but there are now as many people working in this industry in the United States as there were at end of the Depression, even though the population is twice as large. As one article noted about the entrenched unemployed in the United States, there are not the “wide-open job opportunities” of the factories and other institutions of the past.
Special Report: Well-to-do get mortgage help from Uncle Sam (westcoastjan)
Julie Wyss earns $330,000 a year selling real estate in Silicon Valley. When the time came to look for a new home for herself, Wyss settled on a four-bedroom, three-bathroom house in Los Gatos, California, an enclave of young technology entrepreneurs. It has about 2,400 square feet of floor space, four sets of French doors and a price tag of $1.45 million. When she bought the house in June, her main financing was a $625,500 mortgage from Wells Fargo guaranteed by government-backed Fannie Mae.
Bob Wells is one of the vandwelling subculture’s most prominent devotees. He has two sites: cheaprvliving.com and a newer site, cheapgreenrvliving.com. He also just released an ebook, “How to Live in a Car, Van or RV–And Get Out of Debt, Travel and Find True Freedom.” The book provides a wealth of information on the logistics and philosophy of vandwelling and can be purchased for $3 on Amazon.
Where The Bailouts Stand, In 1 Graphic (jdargis)
It's been four years since the U.S. launched a massive bailout of the financial system and the auto industry. While much of the bailout money has been paid back, the government still owns large shares in companies such as AIG and GM, and has yet to recoup some $200 billion in bailouts.
Here's a breakdown by industry.
A few weeks ago, Senator Schumer from New York makes no bones at being quoted, “Get to work…Mr. Chairman!”. This is especially pertinent as Schumer states that because of the Congressional impasse the Fed is the “only game in town”. It must be noted that the spinmeisters know that when the general equity markets rally to new highs, then the probability favors the incumbents who usually win by a landslide. The S&P500 and Dow Jones is breaking into new two year highs which may make the voters feel that the economic storm has passed and good times are here again. These accommodative moves will be quite painful to savers who have been sitting on a record level of cash and U.S. debt and have been shaken out of their gold (UGL) and silver (AGQ) holdings which are exploding to the upside.
Any investor trying to understand the political, economic and financial machinations of the euro zone and the European Union would be well advised to focus on German actions, often hidden under pronouncements by the ECB. Most often the positions and actions that really matter are overlooked completely in the mainline media.
Libya: Doomed From Day One (James S.)
Anyone who thinks that Libya will be a secure oil frontier after the formation of a new government next summer is mistaken. The road to destruction runs from Afghanistan to Benghazi (incidentally, the oil-producing region), branching off to southern Iraq and Pakistan’s tribal regions.
U.S. fishery disaster adds to drought woes (westcoastjan)
At least “moderate” levels of drought have now enveloped more than 64 per cent of the contiguous United States, up from 63.39 per cent the week before, according to the Drought Monitor, a weekly compilation of data gathered by federal and academic scientists.
"I tried to advocate for planting productive trees, making my neighborhood useful, so people could have free access to at least fruit," she said. "I just wasn't getting anywhere."
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