My Hector Finance Blog

Home Builder Index Rises in September

Home Builder Index Rises in September

http://www.marketwatch.com/story/home-builders-index-creeps-higher-in-september-2009-09-16

The Confidence of the US home builders has improved marginally in September as the tax subsidy offered by the government to the first time buyers is scheduled to end soon. According to the National Home Builders Association, the housing market index has risen to 19 in September from 18 in August. The gauge that measures the view of the builders about the market has risen for the third consecutive month. While the current sales index rose by two points to 18, the buyer traffic index was up by one point to 17. However, the prospective sales index was down by one point to 29 indicating that the housing market continues to remain fragile. Builders want the one time tax credit of $8000 for first time buyers to b extended beyond its scheduled November 30 closure. Tight credit conditions for construction loans continue to play spoil sport and restrict activity in the segment.

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Obama Willing To Compromise On Healthcare

Obama Willing To Compromise On Healthcare

http://www.nytimes.com/2009/08/18/health/policy/18plan.html?hpw

The Obama administration has signaled that it is willing to compromise on an issue that formed the central element of the proposed healthcare reforms: the introduction of a government run health care plan to compete with private players. Health and Human Services Secretary Kathleen Sebelius said over the weekend that the proposed reforms were aimed at ensuring adequate competition in the segment and if that was possible without the option of a government run plan, the administration was okay with it. An alternative to the government option is the formation of health cooperatives by the doctors and hospitals. These health cooperatives would need to raise up capital and establish all the necessary infrastructure to introduce health insurance plans. But how successful can this plan be remains to be seem. What is important at this time is to get the healthcare reform move forward.

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What After Your Dole Runs Out?

What After Your Dole Runs Out?

http://www.msnbc.msn.com/id/32555445/ns/us_news-the_elkhart_project/

This is a question which is haunting many across the country and is expected to become a reality for over half a million by September. Despite continuous extensions of the unemployment benefit program, some states have extended it to 79 weeks from the normal 26 weeks; there are thousands who have failed to find a job.
It is not that they have not tried and are being picky. People are applying for whatever jobs are available. Nobody is really bothered any longer about what work they did earlier. Getting food on the table is the priority now, and that is going to become even more difficult once over 1.5 million lose their unemployment benefits by the end of this year.

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US Mulling Overhaul Of Fannie And Freddie

US Mulling Overhaul Of Fannie And Freddie

http://www.thestreet.com/story/10565339/1/us-mulling-overhaul-of-fannie-freddie-reports.html?cm_ven=GOOGLEFI

The US administration is considering various options for overhauling the two mortgage finance giants Fannie Mae and Freddie Mac. One of the options being considered is to transfer the bad debts owned by the two companies to financial institutions or banks backed by the government. This option aims to leave the two companies with a healthy balance sheet and is expected to be discussed soon by the White House’s National Economic Council.  Another option being considered is to merge the two companies into one government agency and leave the mortgage finance function to private banks. Meanwhile James Lockhart, the chief regulator of the two mortgage finance companies has said that there is a need to create a god bank and a bad bank structure. The restructuring plans for the industry are expected to be unveiled in 2010.

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Rethinking Airport Design

Rethinking Airport Design

http://www.msnbc.msn.com/id/32173191/ns/travel-rob_lovitt_columns

A bad time when business is down is a good time to think of and develop new ideas. A little over a year ago, the airline industry was at the top of its cycle. Airports were choc-a-block with travellers, and airlines were flying to full capacity. That situation, as we all know has changed very rapidly.

What effect has the downturn had on airports? With so many airlines closing down, and many opting to share facilities, airports now wear a pretty much empty look. It is not just the downturn which has contributed to this. The entire “checking-in” process has changed in recent times. Partly as cost cutting exercises and partly for convenience, self service check-in kiosks as well as remote and online check in facilities have grown in popularity. This has given the departure areas of airports a   new, empty and different look.

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Get That Home Now!

Get That Home Now!

http://news.yahoo.com/s/ibd/20090716/bs_ibd_ibd/20090716realestate
Things cannot be better for the home buyer. Foreclosed properties are available at prices half of what they sold at two years ago, interest rates are at record lows and the IRS is giving away $8,000 as tax breaks which the home buyer will not have to repay.

Can any offer beat this? Foreclosed homes which are often great properties have reverted to bank ownership. The banks do not want them and are willing to sell them off at prices that just about cover construction costs. If you have money in the bank for putting down that down payment and you believe your credit score will get you a loan, take out time and scout your neighborhood. Be the first to put in a bid for a recently foreclosed home, and you might just hit the jackpot.

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Recession Leads To Rise In Scams

Recession Leads To Rise In Scams

http://www.usatoday.com/money/industries/2009-07-01-short-change_N.htm

In desperate times, people have resorted to an increasing number of scams to dupe unsuspecting innocent people out of whatever little that they have left. In response the Federal Trade Commission has announced a major crackdown named ‘Operation Shortchange’ to bring the criminals to book.

Most of the scams revolve around asking people to pay up money upfront for a job opportunity or a certification which will increase job prospects. It is disgusting to see what lengths fraudsters go to make a quick buck; taking advantage of another’s trust only to push them further into a financial mess deserves the worst punishment.

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Banks – For Me-Not For Me-For Me-Not For Me!

Banks – For Me-Not For Me-For Me-Not For Me!

http://www.latimes.com/business/la-fi-lazarus21-2009jun21,0,7630872.column

Consumers are yet to muster courage to trust US banks once again. The banks have betrayed them, and their hard-earned money has been lost. It is not a wonder then that the banks will have to”turn over a new leaf” to be able to win back their customers. The latest in the banking sector is their opposition to President Obama’s proposal to have a regulatory agency to protect the consumers from avaricious lending practices.

According to the banks, such a free agency will”not serve the best interests of consumers and their financial institutions.” As the discussions continue, we wait to see the future of US banks. There is no denying that a regulating agency can affect the working of US banks, but whether in favor of the consumers or not is yet to be seen.

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Post Bankruptcy GM To Be Leaner and Healthier

Post Bankruptcy GM To Be Leaner and Healthier

http://www.forbes.com/2009/06/01/gm-bankruptcy-obama-business-autos-bailout.html

Bankruptcy could prove to be the best move in General Motors’ efforts to restructure. The US government has worked hard to keep the automobile company afload and has now chalked out a credible plan. If everything works out as per the plan, General Motors is expected to emerge as a much leaner and healthier company having the financial flexibility to invest in new products. But is it really possible? The Obama administration is trying hard and will not allow the reorganization of General Motors to fail since a lot is at stake. However, it is believed that the recovery of the automobile giant may not be as smooth and as quick as planned by the US government. Whatever may be the scenario the General Motors’ cost structure is likely to be much leaner than what it was before bankruptcy, and this would put the company in an advantageous position.

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US Financial System Appears To Be Healing

US Financial System Appears To Be Healing

http://www.reuters.com/article/GCA-Economy/idUSSP46890020090520

US Treasury Secretary Tim Geithner has said that although the US financial system appears to be healing, the contractions in the economies of Japan and Mexico indicate that global recovery is still far away. The efforts by the US government to bailout the country’s financial system have started yielding results and the healing process has started, Geithner says. Even the US Federal Reserve has said that modest improvement was visible in the US economy.  The authority, however, expects the US economy to contract by 1.3%-2% this year with the unemployment rate expected to rise to between 9.2% and 9.6%. Geithner says the US economy continues to face a very challenging economic environment and there is an urgent need preserve resources to deal with any future contingencies.

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