Daily Digest

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Daily Digest 8/30 - Professionals Quitting Rat Race To Farm, Will The Housing Soufflé Rise Twice?

Friday, August 30, 2013, 11:39 AM

Economy

Will the housing soufflé rise twice? (Arthur Robey)

Having peaked in June 2010 (when the ABS index hit 261) after the fuel from Rudd’s First Home Vendors Boost ran out, the index fell by 10.2 per cent to 234.3 in September 2012. It has risen since then by 4.3 per cent to 244.4 in June 2013. This performance has the property lobby bulls and trolls salivating over the vision of a revived investor’s Magic Pudding of ever-rising house prices, while more measured voices worry that another damaging property boom might be upon us.

Nearly half of homes are purchased in cash (Adam)

Another problem: Cash’s dominance is a sign of the fact that “it’s more costly and hard to get financing,” says Susan M. Wachter, professor of real estate and finance at The Wharton School at the University of Pennsylvania. “That’s a bad thing.” The pool of potential buyers is being limited thanks to a combination of tight lending standards and rising interest rates, experts say. The average rate on a 30-year mortgage reached 4.58% last week, the highest level in two years.

The US professionals quitting the rat race to become farmers (westcoastjan)

"This has become a viable career," adds Mr Connors. "There's lots of people in New England and California who run successful small businesses on their farms. As it's become a more viable profession, I think more people are considering it."

Pupils on last year's class at Farm School ranged in age from 19 to 53. Incoming students this autumn include a lawyer, a doctor, a teacher, and several business executives.

Paying CEOs Top Dollar for Poor Performance (westcoastjan)

These cases of gross overcompensation for poor performance seem exceptional, but in fact they’re representatives of a trend. A twenty-year review released today by the Institute for Policy Studies found that the records of nearly 40 percent of America’s top-earning executives include leading their firms to bankruptcy, government bailouts, fraud-related fines and settlements, and their own firing.

JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found (westcoastjan)

“This is an example of the difficulties foreign firms face in doing business in China,” David Marshall, a Singapore-based banking analyst at CreditSights Inc., wrote in an e-mailed response to questions today. “The problem for the foreign firms is that local practices may be different from -- and at times in conflict with -- the legal and ethical rules under which they are required to operate.”

Brazil raises interest rate to 9% to battle inflation (westcoastjan)

Higher interest rates would help Brazil control inflation, and also bolster investors' confidence, the International Monetary Fund said in a report on Wednesday.

Fabio Akira, chief Brazil economist at JPMorgan, said further rate hikes were likely. He is forecasting a 50 basis points rise in October and another 25 points rise later in the year.

Is the emerging market growth story over? (westcoastjan)

One of the reasons for the slowdown is that developing countries now have less room to "catch up" than before. For the first time ever, emerging economies now account for more than half of the world's GDP, according to the IMF. So, countries like China, India, Russia and others produce more of the world's output than rich countries like the US, UK, Germany. It implies that these developing nations have caught up to some extent and growth will slow unless they innovate like the richer countries.

Alberta construction labour deal contains innovative twist (westcoastjan)

“If you look at it in any rational way, oil and oil sands are the big dogs in Alberta, so wages are going to have to track those in any event. So it probably makes a real ton of sense to do it this way,” Mr. Blakely says. “It gives some comfort to the people who are spending the billions.”

Worldwide loss of oil supply heightens Syria attack risk (pinecarr)

The bank said the most likely outcome would be a “short-lived spike” to between $120 and $130 provided the Nato operation is limited to a few days. The bank said a “protracted Vietnam-style boots-on-the-ground proxy war” could lead to a $50 jump, pushing Brent crude to $160.

Lake Erie Algae 'Dead Zones' An Urgent Problem (westcoastjan)

Benoy — a senior water quality and ecosystem adviser — said there is evidence an algae bloom is starting to spread now, but he doesn't know how severe it will be as blooms tend to peak in the fall.

Gold & Silver

Click to read the Gold & Silver Digest: 8/29/13

Provided daily by the Peak Prosperity Gold & Silver Group

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5 Comments

saxplayer00o1's picture
saxplayer00o1
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thc0655's picture
thc0655
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westcoastjan
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Arthur Robey's picture
Arthur Robey
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The MSM wakes up!

Of cause there will be people saying that this is all propaganda from The Bilderbergers and Agenda 21.

Never-the-less it is in HD with pretty pictures. Enjoy.

Arthur Robey's picture
Arthur Robey
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Joined: Feb 4 2010
Posts: 3936
Robot competition in September.

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