Source: Housingwire
By Kerri Ann Panchuk
Rising home prices pulled more than 100,000 homeowners out of negative equity in the third quarter of 2012, bringing the total number of borrowers rebounding from 'upside-down status' to 1.4 million through the first three quarters of the year, CoreLogic said.
By the second quarter of 2012, 1.3 million borrowers had reached positive-equity status. And by the third quarter, 10.7 million, or 22% of all residential properties with a mortgage, remained in negative equity, down from 10.8 million properties in the second quarter.
An additional 2.3 million borrowers remain at-risk of falling into negative equity, with those homeowners maintaining less than 5% equity in their homes, CoreLogic added.
Altogether negative equity and near-negative equity borrowers represent 26.8% of all U.S. residential properties with a mortgage today.
Negative equity fell from $689 billion at the end of 2Q2012 to $658 billion in the third quarter. CoreLogic attributes this $31-billion quarterly decline to improving home prices.
"Through the third quarter, the number of underwater borrowers declined significantly," said Mark Fleming, chief economist for CoreLogic. "The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity's lock-out effect, has paradoxically alleviated some of the pain."
The states with the largest percentage of homes in negative equity from most to least included Nevada, with 56.9% of properties upside down; Florida (42.1% in negative equity); Arizona (38.6%); Georgia (35.6%) and Michigan (32%).
The average underwater amount is $49,000. The majority of homes in negative equity are lower-priced properties. Homes valued for less than $200,000 represented 28.7% of all properties in negative equity. Comparatively, only 14.6% of upside-down homes have values above $200,000.
URL to original article: http://www.housingwire.com/news/2013/01/17/rising-prices-lift-14-million-homeowners-out-negative-equity
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, January 21, 2013
Housing recovery to occur in fits and starts
Source: Housingwire
By Christina Mlynski
Momentum continues to build in the housing market as a result of positive views on housing demand and supply assumptions, according to JPMorgan Chase's ($46.46 0.02%) securitized report. The big banking company projects 3.4% growth nationally in 2013, and 3% growth in 2014 and 2015, respectively. Home sales are also expected to climb to 5.1 million next year, outpacing an increase in housing inventory to 2.4 million, leading to 2.7 million in net demand. "Recent housing and economic indicators have been mixed. Both new home and existing home sales rose, net demand remained at high levels, housing starts jumped, and builders' confidence rose to the highest level since mid 2006. But the December payroll data offered little excitement, and mortgage applications point to potential weakness in future sales," Chase analysts said. Although home prices typically weaken in the winter months, the CoreLogic index was up 0.1% in November, and up 7.2% from last year. Also, the S&P/Case-Shiller 20-city index and the Federal Housing Finance Agency purchase-only index rose 4.3% and 5.6%, respectively from the previous year. However, the sluggish economy, tight lending standards and elevated shadow inventory will impede a steady housing recovery. Fitch Ratings noted in its U.S. homebuilding/construction report that challenges — such as high delinquency levels, the potential for foreclosure acceleration and distressed sales — continue to weigh on housing. Nonetheless, Fitch expects "stable" ratings for the homebuilding sector in 2013, which reflects a continued moderate improvement in the industry. Single-family housing starts are expected to improve about 18% in 2013, while new homes sales should increase by 22% and existing home sales are expected to grow by 7%. Average single-family new home prices improved an estimated 3.5% in 2012 and are expected to rise 3.8% in 2013. "Attractive home prices, persistently low mortgage rates and a rise in nominal incomes results in superior affordability and valuations. Mortgage rates remain near their all-time recorded lows and housing appears more undervalued versus incomes than at any time in the past 35 years," Fitch analysts noted. The major public homebuilders also reported growth in stock price performance and will continue to see solid growth in 2013. Many including Beazer Homes ($17.24 0.03%), Hovnanian Enterprises ($6.30 0.35%), Lennar Corp. ($42.08 0.14%) and Pulte Group [stock PHM] generally realized much stronger results year-over-year in the first three quarters of 2012 and gained market share.
URL to original article: http://www.housingwire.com/news/2013/01/18/housing-recovery-occur-fits-and-starts
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Christina Mlynski
Momentum continues to build in the housing market as a result of positive views on housing demand and supply assumptions, according to JPMorgan Chase's ($46.46 0.02%) securitized report. The big banking company projects 3.4% growth nationally in 2013, and 3% growth in 2014 and 2015, respectively. Home sales are also expected to climb to 5.1 million next year, outpacing an increase in housing inventory to 2.4 million, leading to 2.7 million in net demand. "Recent housing and economic indicators have been mixed. Both new home and existing home sales rose, net demand remained at high levels, housing starts jumped, and builders' confidence rose to the highest level since mid 2006. But the December payroll data offered little excitement, and mortgage applications point to potential weakness in future sales," Chase analysts said. Although home prices typically weaken in the winter months, the CoreLogic index was up 0.1% in November, and up 7.2% from last year. Also, the S&P/Case-Shiller 20-city index and the Federal Housing Finance Agency purchase-only index rose 4.3% and 5.6%, respectively from the previous year. However, the sluggish economy, tight lending standards and elevated shadow inventory will impede a steady housing recovery. Fitch Ratings noted in its U.S. homebuilding/construction report that challenges — such as high delinquency levels, the potential for foreclosure acceleration and distressed sales — continue to weigh on housing. Nonetheless, Fitch expects "stable" ratings for the homebuilding sector in 2013, which reflects a continued moderate improvement in the industry. Single-family housing starts are expected to improve about 18% in 2013, while new homes sales should increase by 22% and existing home sales are expected to grow by 7%. Average single-family new home prices improved an estimated 3.5% in 2012 and are expected to rise 3.8% in 2013. "Attractive home prices, persistently low mortgage rates and a rise in nominal incomes results in superior affordability and valuations. Mortgage rates remain near their all-time recorded lows and housing appears more undervalued versus incomes than at any time in the past 35 years," Fitch analysts noted. The major public homebuilders also reported growth in stock price performance and will continue to see solid growth in 2013. Many including Beazer Homes ($17.24 0.03%), Hovnanian Enterprises ($6.30 0.35%), Lennar Corp. ($42.08 0.14%) and Pulte Group [stock PHM] generally realized much stronger results year-over-year in the first three quarters of 2012 and gained market share.
URL to original article: http://www.housingwire.com/news/2013/01/18/housing-recovery-occur-fits-and-starts
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, January 15, 2013
December home prices pick up in Valley
Source: The Business Journal
Home prices picked up in the Central Valley during the month of December, although sales figures were hit and miss. According to a new report from the California Association of Realtors, Fresno County's median home price was at $157,620 in the month, a 6.3-percent increase from November's price of $148,240 and 15.3 percent up from the December 2011 price of $136,470. Home sales in the county dropped however, falling 2.5 percent from November and 22.2 percent year-over-year. Tulare County's median home price stood at $144,440 in December, a jump of 4.6 percent from $138,080 in November and 13.1 percent over $127,660 in December 2011. Sales in the county were among the few in the region to increase, rising 21.9 percent since November. However, compared to December 2011, sales were down 23.4 percent. In Madera County, the median home price increased 27.3 percent in December to $144,290 over November's price of $113,330 and 36.1 percent over $106,110 the year before. Sales in the Madera County rose 19.2 percent from November but fell 24.4 percent from December 2011. Kings County saw its median home price increase 4.9 percent in the month to $146,000 over November's $139,230 and 10.9 percent over the December 2011 price of $131,670. Home sales in the county were down 4.7 percent from November and 2.4 percent year-over-year. Fresno County's unsold inventory index, or number of months to deplete the supply of homes at the current sales rate, was 3.8 months in December compared to 4.2 in November and 4.1 a year ago while. Tulare County's index dropped to 2.8 months from 3.8 both last month and a year ago, while Madera County's index was at 2 months compared to 3.2 and 3.8 respectively. Kings County's index was unchanged from November at 2.9 months but better than the 3.7 months the year before. Statewide, the median home price stood at $366,930 in December, up 5 percent from November and 27 percent a year ago. Sales were slightly better in the month at 522,510 single-family homes sold. "A rush to complete sales of higher-priced homes by the end of the year to avoid an expected increase in capital gains due to the "fiscal cliff" pushed up sales of homes priced $500,000 and above by nearly 42 percent from December 2011," said C.A.R. President Don Faught.
URL to original article: http://thebusinessjournal.com/news/real-estate/4592-december-home-prices-pick-up-in-valley
For further information on Fresno Real Estate check: http://www.londonproperties.com
Home prices picked up in the Central Valley during the month of December, although sales figures were hit and miss. According to a new report from the California Association of Realtors, Fresno County's median home price was at $157,620 in the month, a 6.3-percent increase from November's price of $148,240 and 15.3 percent up from the December 2011 price of $136,470. Home sales in the county dropped however, falling 2.5 percent from November and 22.2 percent year-over-year. Tulare County's median home price stood at $144,440 in December, a jump of 4.6 percent from $138,080 in November and 13.1 percent over $127,660 in December 2011. Sales in the county were among the few in the region to increase, rising 21.9 percent since November. However, compared to December 2011, sales were down 23.4 percent. In Madera County, the median home price increased 27.3 percent in December to $144,290 over November's price of $113,330 and 36.1 percent over $106,110 the year before. Sales in the Madera County rose 19.2 percent from November but fell 24.4 percent from December 2011. Kings County saw its median home price increase 4.9 percent in the month to $146,000 over November's $139,230 and 10.9 percent over the December 2011 price of $131,670. Home sales in the county were down 4.7 percent from November and 2.4 percent year-over-year. Fresno County's unsold inventory index, or number of months to deplete the supply of homes at the current sales rate, was 3.8 months in December compared to 4.2 in November and 4.1 a year ago while. Tulare County's index dropped to 2.8 months from 3.8 both last month and a year ago, while Madera County's index was at 2 months compared to 3.2 and 3.8 respectively. Kings County's index was unchanged from November at 2.9 months but better than the 3.7 months the year before. Statewide, the median home price stood at $366,930 in December, up 5 percent from November and 27 percent a year ago. Sales were slightly better in the month at 522,510 single-family homes sold. "A rush to complete sales of higher-priced homes by the end of the year to avoid an expected increase in capital gains due to the "fiscal cliff" pushed up sales of homes priced $500,000 and above by nearly 42 percent from December 2011," said C.A.R. President Don Faught.
URL to original article: http://thebusinessjournal.com/news/real-estate/4592-december-home-prices-pick-up-in-valley
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, January 14, 2013
Total home sales jump 6% in 2012
Source: Housingwire
By Kerri Ann Panchuk
The year 2012 brought a housing turnaround with total home sales increasing 6% to 4.2 million sales for the entire year, CoreLogic said Monday. This is the first year-over-year sales increase since 2005, signaling a housing market that is rebounding and poised for further growth, the data research firm suggested. The total home sales figure for 2012 is up from 3.9 million in 2011. New home sales also improved, growing 3% to 300,000 transactions on brand new homes in 2012. The distressed housing market also thawed, with REO sales declining more than 20% to 600,000 sales last year. Meanwhile, short-sales rose 23% to 370,000 units, the highest level since the real estate downturn. At the same time, serious delinquencies (or loans that are 90 days or more past due) fell by nearly 300,000 loans last year, pushing the serious delinquency rate down from 7.4% to 6.9%. CoreLogic noted an ongoing two-year decline in late payments, with serious delinquencies falling by one million loans since the January 2010 peak. As the housing market pushes deeper into 2013, CoreLogic sees real estate "poised for further recovery," despite the uncertainty of how the qualified mortgage rule and other new regulations will impact lending. "Rising home prices will continue to slowly release pent-up supply as under-equitied borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories," CoreLogic wrote. "Geographic diversity in home price growth will continue."
URL to original article: http://www.housingwire.com/news/2013/01/14/total-home-sales-jump-6-2012
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The year 2012 brought a housing turnaround with total home sales increasing 6% to 4.2 million sales for the entire year, CoreLogic said Monday. This is the first year-over-year sales increase since 2005, signaling a housing market that is rebounding and poised for further growth, the data research firm suggested. The total home sales figure for 2012 is up from 3.9 million in 2011. New home sales also improved, growing 3% to 300,000 transactions on brand new homes in 2012. The distressed housing market also thawed, with REO sales declining more than 20% to 600,000 sales last year. Meanwhile, short-sales rose 23% to 370,000 units, the highest level since the real estate downturn. At the same time, serious delinquencies (or loans that are 90 days or more past due) fell by nearly 300,000 loans last year, pushing the serious delinquency rate down from 7.4% to 6.9%. CoreLogic noted an ongoing two-year decline in late payments, with serious delinquencies falling by one million loans since the January 2010 peak. As the housing market pushes deeper into 2013, CoreLogic sees real estate "poised for further recovery," despite the uncertainty of how the qualified mortgage rule and other new regulations will impact lending. "Rising home prices will continue to slowly release pent-up supply as under-equitied borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories," CoreLogic wrote. "Geographic diversity in home price growth will continue."
URL to original article: http://www.housingwire.com/news/2013/01/14/total-home-sales-jump-6-2012
For further information on Fresno Real Estate check: http://www.londonproperties.com
$250 million cheese plant could bring 220 jobs To Tulare
Source: The Business Journal
Written by John Lindt
Looking to tap into the booming export market in Asia for cheese and protein, CaliCheese LLC, a startup cheese maker, plans a cheese plant in Tulare producing 4 million pounds of milk per day and is valued at $250 million. The Tulare City Council is expected to approve the sale of nearly 60 acres to the new company to build a 300,000 square-foot cheese plant on city-owned land in west Tulare. The purchase price would be $2.1 million, according to a staff report. The council will take up the project at their Jan. 15 open session meeting. The sale of the land comes after a year of negotiation with the company when the Tulare County Economic Development Corporation brought the prospect to the area. The company identified several potential locations within the county for the site of the plant, but settled on Tulare. The firm has also considered a site in Sanger The cheese plant expects to employ 220 workers and make cheddar cheese and whey protein as its main products. The company's mission statement says they hope to close financing by June 30, 2012, in which case the plant would begin operation in early 2015. The property at 2600 W. Paige—near the city wastewater treatment plant—has been the subject of several closed-door agenda meetings naming the consultant firm from Georgia who is helping the company secure a site. The property is the same city-owned land that was the subject of a lengthy and court tested environmental impact report for a meat-packing plant.That meat-packing plant has yet to gain financing and its proponent was notified it no longer had an exclusive right to purchase the property. They have been told however, they could buy a nearby piece. EIR In Place It is expected the cheese plant would qualify as a similar type user and thus could use the same EIR allowing it to move forward with full entitlements to the land, a huge time saver for any large project in California and subject to the California Environmental Quality Act. Who Are These Guys? Project development manager of CaliCheese is Jeffrery F. Lee, with a Mineral King address in Visalia, and the LLC is based in Delaware. The Visalia address is for Schuil & Associates, an ag-oriented real estate firm. Schuils and Lee are also affiliated with Bakersfield attorney David Albers who five years ago tried, but failed, to build a a large cheese plant in Fresno County under the name Blue Ribbon Cheese. Lee was a founder of and the project development advisor to what was this prospective $340 million cheese company. Lee is also affiliated with Manhattan Beach-based California Ethanol and Power. California Ethanol & Power, LLC focuses on production of renewable energy from sugarcane and on developing, financing, installing and operating sugarcane-to-ethanol-and-electricity production plants in California. The company says it is in the permitting stage to build a plant in Imperial Valley by 2015. CaliCheese lists Lee as the former division counsel for a $1 billion Bechtel Power Corporation operating division and a senior development manager with Bechtel Enterprises, where he led or participated in a number of project developments and financings for industrial processing facilities. Lee also wrote the business plan that provided the foundation for Southwest Cheese Company in Clovis New Mexico founded in 2006. He holds a bachelor's degree in economics with honors from the University of Michigan, and a Juris Doctorate from the University of Michigan. The company lists Chief Operating Officer Daryl D. Boddicker—a 30-year Kraft Foods veteran and recipient of the Kraft Merit Award. Boddicker had responsibility for all Kraft North American plant operations and also for all Kraft research and development activities worldwide. Company officials said they could not comment until after the Jan. 15 meeting. CaliCheese mission statement says the huge project requires it to raise as much as $350 million in financing to fund the $250 million facility. The statement says the plant "will generate cash flow that is more than sufficient to provide adequate debt service coverage, a fair market return to the project finance equity provider(s) and robust returns to the CCC ownership interests, particularly once the senior debt is retired." Their project is huge by any standard. At $250 million - the project would be the largest in Tulare County in recent memory. The largest project underway in the county now is the new Porterville courthouse valued at $91 million. Visalia’s largest commercial projects in recent memory was the VWR warehouse, valued at $22 million, or the Kaweah Delta hospital wing in 2009, valued at $143 million. The Leprino cheese plant—built almost a decade ago in Lemoore—was valued at $300 million and has expanded since—processing some 12 million pounds of milk a day into mostly mozzarella cheese. The CaliCheese (CCC) statement says their business plan calls for expansion of the 4 million pounds a day production by 50 percent, which would increase its planned capacity at 6 million pounds a day. Asia Market Regarding the market opportunity the company's statement says, “Asia's growing appetite for cheese and whey-derived products has caused wholesale cheddar cheese prices to increase more than 50 percent, and whey-derived products prices almost 100 percent, over the past year. CCC expects to enter into long-term contracts for the sale of the majority of its cheese and the totality of its whey-derived products to a major industry player at pricing indexed to market prices.“ “The U.S. shipped more than twice as much cheese to Asia in 2011 than in 2010, and the demand for whey-derived products is growing even faster, also driven in large part by the increasing demand for protein from Asia.“ The US Dairy Export Council recently stated that ”through the first 10 months of 2012, the volume of major products increased a combined 5.5 percent to more than 2.8 billion pounds. Although growth had softened in recent months, U.S. cheese and whey protein concentrate were poised to shatter volume records and nonfat dry milk/skim milk powder was tracking at or near record levels. "For the second consecutive year, the U.S. export volume accounted for more than 13 percent of total milk solids produced in the United States.“ Must Perform The City of Tulare's agreement with CaliCheese has provisions that include: a six-month feasibility period for the developer to approve the site; a $10,000 non-refundable deposit; a 12-month period for the developer to obtain project financing; a six-month period after the close of escrow for developer to initiate the project; failure to comply would result in a reversion of the property to the city. Tulare officials wanted the last provision to be in the agreement keep a developer from buying the land and just siting on it or flipping it. This is a sensitive issue in this community where two large projects, a meat packing plant and a huge race track project were near final approval but in the end failed to get financing. The projects, instead of producing jobs, actually cost the city lots of time, grief and money, as well as the jobs of several politicos. Tulare is already home to many of the world's largest dairy product producers and the largest cluster of dairy firms in the U.S. West. They include names like Land O'Lakes, employing nearly 600, Saputo (now with three plants and 400 workers), Haagen-Dazs (owned by Nestle), with some 300 employees, and Kraft Foods, employing 120 workers. Scores of supply firms for the industry are based here as well, with employment of hundreds more. Tulare County is the largest milk producing county in the world, with $2 billion in milk sales annually. Despite the size of the California dairy industry, producers have complained they feel they are being paid too little for their milk, particularly from the private cheese plants who suck up about half the milk produced in the state. Cheese makers argue they are the ones in danger of being driven out of business. Caught in the middle is California Department of Food and Agriculture ag secretary Karen Ross, who is expected to make a price adjustment upward for some dairy products later this month. That could translate into higher costs for local cheese manufacturers. Welcoming More Competition “Producers would favor a new processor” said Tom Barcellos, a Porterville dairyman and president of the Western United Dairymen. ”We need more competition for our milk.”
URL to original article: http://www.thebusinessjournal.com/news/manufacturing-and-distribution/4573-250-million-cheese-plant-could-bring-220-jobs-to-tulare
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by John Lindt
Looking to tap into the booming export market in Asia for cheese and protein, CaliCheese LLC, a startup cheese maker, plans a cheese plant in Tulare producing 4 million pounds of milk per day and is valued at $250 million. The Tulare City Council is expected to approve the sale of nearly 60 acres to the new company to build a 300,000 square-foot cheese plant on city-owned land in west Tulare. The purchase price would be $2.1 million, according to a staff report. The council will take up the project at their Jan. 15 open session meeting. The sale of the land comes after a year of negotiation with the company when the Tulare County Economic Development Corporation brought the prospect to the area. The company identified several potential locations within the county for the site of the plant, but settled on Tulare. The firm has also considered a site in Sanger The cheese plant expects to employ 220 workers and make cheddar cheese and whey protein as its main products. The company's mission statement says they hope to close financing by June 30, 2012, in which case the plant would begin operation in early 2015. The property at 2600 W. Paige—near the city wastewater treatment plant—has been the subject of several closed-door agenda meetings naming the consultant firm from Georgia who is helping the company secure a site. The property is the same city-owned land that was the subject of a lengthy and court tested environmental impact report for a meat-packing plant.That meat-packing plant has yet to gain financing and its proponent was notified it no longer had an exclusive right to purchase the property. They have been told however, they could buy a nearby piece. EIR In Place It is expected the cheese plant would qualify as a similar type user and thus could use the same EIR allowing it to move forward with full entitlements to the land, a huge time saver for any large project in California and subject to the California Environmental Quality Act. Who Are These Guys? Project development manager of CaliCheese is Jeffrery F. Lee, with a Mineral King address in Visalia, and the LLC is based in Delaware. The Visalia address is for Schuil & Associates, an ag-oriented real estate firm. Schuils and Lee are also affiliated with Bakersfield attorney David Albers who five years ago tried, but failed, to build a a large cheese plant in Fresno County under the name Blue Ribbon Cheese. Lee was a founder of and the project development advisor to what was this prospective $340 million cheese company. Lee is also affiliated with Manhattan Beach-based California Ethanol and Power. California Ethanol & Power, LLC focuses on production of renewable energy from sugarcane and on developing, financing, installing and operating sugarcane-to-ethanol-and-electricity production plants in California. The company says it is in the permitting stage to build a plant in Imperial Valley by 2015. CaliCheese lists Lee as the former division counsel for a $1 billion Bechtel Power Corporation operating division and a senior development manager with Bechtel Enterprises, where he led or participated in a number of project developments and financings for industrial processing facilities. Lee also wrote the business plan that provided the foundation for Southwest Cheese Company in Clovis New Mexico founded in 2006. He holds a bachelor's degree in economics with honors from the University of Michigan, and a Juris Doctorate from the University of Michigan. The company lists Chief Operating Officer Daryl D. Boddicker—a 30-year Kraft Foods veteran and recipient of the Kraft Merit Award. Boddicker had responsibility for all Kraft North American plant operations and also for all Kraft research and development activities worldwide. Company officials said they could not comment until after the Jan. 15 meeting. CaliCheese mission statement says the huge project requires it to raise as much as $350 million in financing to fund the $250 million facility. The statement says the plant "will generate cash flow that is more than sufficient to provide adequate debt service coverage, a fair market return to the project finance equity provider(s) and robust returns to the CCC ownership interests, particularly once the senior debt is retired." Their project is huge by any standard. At $250 million - the project would be the largest in Tulare County in recent memory. The largest project underway in the county now is the new Porterville courthouse valued at $91 million. Visalia’s largest commercial projects in recent memory was the VWR warehouse, valued at $22 million, or the Kaweah Delta hospital wing in 2009, valued at $143 million. The Leprino cheese plant—built almost a decade ago in Lemoore—was valued at $300 million and has expanded since—processing some 12 million pounds of milk a day into mostly mozzarella cheese. The CaliCheese (CCC) statement says their business plan calls for expansion of the 4 million pounds a day production by 50 percent, which would increase its planned capacity at 6 million pounds a day. Asia Market Regarding the market opportunity the company's statement says, “Asia's growing appetite for cheese and whey-derived products has caused wholesale cheddar cheese prices to increase more than 50 percent, and whey-derived products prices almost 100 percent, over the past year. CCC expects to enter into long-term contracts for the sale of the majority of its cheese and the totality of its whey-derived products to a major industry player at pricing indexed to market prices.“ “The U.S. shipped more than twice as much cheese to Asia in 2011 than in 2010, and the demand for whey-derived products is growing even faster, also driven in large part by the increasing demand for protein from Asia.“ The US Dairy Export Council recently stated that ”through the first 10 months of 2012, the volume of major products increased a combined 5.5 percent to more than 2.8 billion pounds. Although growth had softened in recent months, U.S. cheese and whey protein concentrate were poised to shatter volume records and nonfat dry milk/skim milk powder was tracking at or near record levels. "For the second consecutive year, the U.S. export volume accounted for more than 13 percent of total milk solids produced in the United States.“ Must Perform The City of Tulare's agreement with CaliCheese has provisions that include: a six-month feasibility period for the developer to approve the site; a $10,000 non-refundable deposit; a 12-month period for the developer to obtain project financing; a six-month period after the close of escrow for developer to initiate the project; failure to comply would result in a reversion of the property to the city. Tulare officials wanted the last provision to be in the agreement keep a developer from buying the land and just siting on it or flipping it. This is a sensitive issue in this community where two large projects, a meat packing plant and a huge race track project were near final approval but in the end failed to get financing. The projects, instead of producing jobs, actually cost the city lots of time, grief and money, as well as the jobs of several politicos. Tulare is already home to many of the world's largest dairy product producers and the largest cluster of dairy firms in the U.S. West. They include names like Land O'Lakes, employing nearly 600, Saputo (now with three plants and 400 workers), Haagen-Dazs (owned by Nestle), with some 300 employees, and Kraft Foods, employing 120 workers. Scores of supply firms for the industry are based here as well, with employment of hundreds more. Tulare County is the largest milk producing county in the world, with $2 billion in milk sales annually. Despite the size of the California dairy industry, producers have complained they feel they are being paid too little for their milk, particularly from the private cheese plants who suck up about half the milk produced in the state. Cheese makers argue they are the ones in danger of being driven out of business. Caught in the middle is California Department of Food and Agriculture ag secretary Karen Ross, who is expected to make a price adjustment upward for some dairy products later this month. That could translate into higher costs for local cheese manufacturers. Welcoming More Competition “Producers would favor a new processor” said Tom Barcellos, a Porterville dairyman and president of the Western United Dairymen. ”We need more competition for our milk.”
URL to original article: http://www.thebusinessjournal.com/news/manufacturing-and-distribution/4573-250-million-cheese-plant-could-bring-220-jobs-to-tulare
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, January 11, 2013
From monkeys to surfers, Calif. braces for cold
Source: The Business Journal
Written by JULIE WATSON,Associated Press
(AP) — Strawberry growers covered their crops while San Diego zookeepers turned on heaters for the chimpanzees as Californians braced for a cold snap that was expected to drop temperatures to a six-year low. Forecasters warned that a low pressure trough sinking over San Diego County and parts of neighboring Orange County could keep nightly temperatures below the freezing point in coastal areas, the low deserts and inland valleys, threatening orange, avocado orchards and other sensitive plants. The coldest nights were expected to hit Friday and Saturday. Farmers were prepared to pull out giant fans to circulate the frosty air and keep it from settling on their citrus trees, said Eric Larson of the San Diego County Farm Bureau. Other growers were placing soft cloth over their strawberries and flowers. The National Weather Service predicted overnight lows in the 20s in the lower deserts and key citrus-growing regions in the Central Valley, and in the 30s along the coast. "These guys are going to be up all night watching thermometers," Larson said. Freezing temperatures weren't the only weather challenge in Southern California, a region boasting one of the planet's most temperate climates. Forecasters say a combination of astronomical high tides, high surf and strong winds will bring minor flooding to low-lying areas of the Southern California coast. The weather service issued coastal flood advisories for all counties from San Luis Obispo south to San Diego through Saturday morning. They also warned motorists to watch out for sand blowing across coastal highways and snow in the mountains down to 2,000 feet. Snow briefly closed the Grapevine section of Interstate 5 north of Los Angeles twice on Thursday. Several accidents and spinouts were reported in the mountain pass as the winter weather bore down on Southern California. Winds could gust to 60 mph there and up to 45 mph in valleys and coastal areas. Highs will only hit the 50s and 60s and rain showers are expected throughout the region. Families pushed aside boogie boards and pulled out sleds as snow fell Thursday in the mountains of San Bernardino and Riverside counties. Chains were required on all vehicles. Farther north in Sonoma County, homeless shelters started handing out extra warm clothes to protect the least fortunate from below-freezing overnight temperatures. Jennielynn Holmes of Catholic Charities in Santa Rosa told the Santa Rosa Press-Democrat the waiting list to get in her three shelters doubled Wednesday morning. John Records, who runs the Mary Isaak Center in Petaluma, said he planned to put out extra sleeping mats and make more space for people. "It's terrible to be on the street in weather like this," Records said. "People anticipate it and they find a safe place to be." Workers at SeaWorld in San Diego planned to crank up the heat for their macaws, toucans and parrots. San Diego zookeepers were also heating rooms for chimpanzees, apes and other tropical animals. "They'll probably be huddling together and not be in areas where people will be able to see them," said zoo spokeswoman Christina Simmons. Many local residents planned to do the same. "We'll have to huddle up, drink coffee, and tell stories," joked J.P. Pierre, owner of Surfy Surfy Surf Shop in the beach town of Leucadia. "But there's a no whining rule around here because I have so many friends from the northeast and Canada. If everyone had a decent jacket it would be no big deal, but everyone is walking around in flip flops." The so-called king tides will peak Friday morning around 7 feet, depending on location. The conditions may cause some flooding across beaches, parking lots and around estuaries, lagoons and harbors. Parts of Pacific Coast Highway between Sunset Beach and Seal Beach could see standing water. San Diego's Mission Beach was nearly empty Thursday except for a few snowbirds who scoffed at a cold snap that seemed downright balmy to them. Some shot pictures of the wind-swept waves. "We're from Chicago, so to us this is like a heat wave," said Rod Erdohaty, 54, walking to the beach in blustering wind.
URL to original article: http://www.thebusinessjournal.com/news/state/4558-from-monkeys-to-surfers-calif-braces-for-cold
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by JULIE WATSON,Associated Press
(AP) — Strawberry growers covered their crops while San Diego zookeepers turned on heaters for the chimpanzees as Californians braced for a cold snap that was expected to drop temperatures to a six-year low. Forecasters warned that a low pressure trough sinking over San Diego County and parts of neighboring Orange County could keep nightly temperatures below the freezing point in coastal areas, the low deserts and inland valleys, threatening orange, avocado orchards and other sensitive plants. The coldest nights were expected to hit Friday and Saturday. Farmers were prepared to pull out giant fans to circulate the frosty air and keep it from settling on their citrus trees, said Eric Larson of the San Diego County Farm Bureau. Other growers were placing soft cloth over their strawberries and flowers. The National Weather Service predicted overnight lows in the 20s in the lower deserts and key citrus-growing regions in the Central Valley, and in the 30s along the coast. "These guys are going to be up all night watching thermometers," Larson said. Freezing temperatures weren't the only weather challenge in Southern California, a region boasting one of the planet's most temperate climates. Forecasters say a combination of astronomical high tides, high surf and strong winds will bring minor flooding to low-lying areas of the Southern California coast. The weather service issued coastal flood advisories for all counties from San Luis Obispo south to San Diego through Saturday morning. They also warned motorists to watch out for sand blowing across coastal highways and snow in the mountains down to 2,000 feet. Snow briefly closed the Grapevine section of Interstate 5 north of Los Angeles twice on Thursday. Several accidents and spinouts were reported in the mountain pass as the winter weather bore down on Southern California. Winds could gust to 60 mph there and up to 45 mph in valleys and coastal areas. Highs will only hit the 50s and 60s and rain showers are expected throughout the region. Families pushed aside boogie boards and pulled out sleds as snow fell Thursday in the mountains of San Bernardino and Riverside counties. Chains were required on all vehicles. Farther north in Sonoma County, homeless shelters started handing out extra warm clothes to protect the least fortunate from below-freezing overnight temperatures. Jennielynn Holmes of Catholic Charities in Santa Rosa told the Santa Rosa Press-Democrat the waiting list to get in her three shelters doubled Wednesday morning. John Records, who runs the Mary Isaak Center in Petaluma, said he planned to put out extra sleeping mats and make more space for people. "It's terrible to be on the street in weather like this," Records said. "People anticipate it and they find a safe place to be." Workers at SeaWorld in San Diego planned to crank up the heat for their macaws, toucans and parrots. San Diego zookeepers were also heating rooms for chimpanzees, apes and other tropical animals. "They'll probably be huddling together and not be in areas where people will be able to see them," said zoo spokeswoman Christina Simmons. Many local residents planned to do the same. "We'll have to huddle up, drink coffee, and tell stories," joked J.P. Pierre, owner of Surfy Surfy Surf Shop in the beach town of Leucadia. "But there's a no whining rule around here because I have so many friends from the northeast and Canada. If everyone had a decent jacket it would be no big deal, but everyone is walking around in flip flops." The so-called king tides will peak Friday morning around 7 feet, depending on location. The conditions may cause some flooding across beaches, parking lots and around estuaries, lagoons and harbors. Parts of Pacific Coast Highway between Sunset Beach and Seal Beach could see standing water. San Diego's Mission Beach was nearly empty Thursday except for a few snowbirds who scoffed at a cold snap that seemed downright balmy to them. Some shot pictures of the wind-swept waves. "We're from Chicago, so to us this is like a heat wave," said Rod Erdohaty, 54, walking to the beach in blustering wind.
URL to original article: http://www.thebusinessjournal.com/news/state/4558-from-monkeys-to-surfers-calif-braces-for-cold
For further information on Fresno Real Estate check: http://www.londonproperties.com
Swearengin: Housing program to bring 750 jobs to Fresno
Source: The Business Journal
The Fresno Housing Authority has received a big boost in financial support of local public housing rehabilitation. The Department of Housing and Urban Development selected the authority to be a part of its Rental Assistance Demonstration (RAD) program that allows the authority to use private sector funding as well as equity in current developments to pay for affordable housing building improvements. The local economy will receive a positive jolt in the form of 750 new jobs for construction and installation workers, Fresno Mayor Ashley Swearengin reported. The result is that public housing in Southeast Fresno, Orange Cove and Mendota could see improvements started in 2014. Without the RAD program, needed rehabilitation of the buildings could have taken as long as 30 years. That was a troubling prospect for the Fresno Housing Authority. The authority reports that the stock of public and affordable housing across the county is aging and deteriorating. Cost of the needed improvements has soared to more than $100 million. However, the authority only receives $3 million a year for capital improvements. In addition, communities needed alternatives as the state’s redevelopment funding came to a halt last year. “This is a unique opportunity to reinvest in our properties in the city of Fresno and throughout Fresno County,” said Preston Prince, Fresno Housing Authority chief executive officer and executive director. “RAD will enable us to create communities that have a more distinct sense of place for our residents.” The authority saw a potential solution in the RAD program, applied to it, and was recently selected to participate. Fresno County was one of 65 housing authorities selected in the first round of RAD. “RAD is a better, smarter way to preserve affordable housing stock,” said Carol Galante, U.S. Federal Housing Administration commissioner, who was in Fresno Friday for an informative gathering and celebration of Fresno’s participation in RAD. Swearengin, also on hand, pointed out that that RAD help both low-income renters and the workers who will make improvements to public housing. “I am a very happy mayor today,” Swearengin said. The new funding resources will be used to make improvements to housing units including upgrades to kitchens and bathrooms and the addition of laundry rooms. Infrastructure improvements are part of the plan and include repair and replacement of sewer and water lines. Buildings will be renovated to provide access to backyards. The authority has engaged multiple stakeholders in the process to ensure the many needs are addressed. Public housing including in the rehabilitation projects include Cedar Courts I and 2, Viking Village and Inyo Terrace in Southeast Fresno, Kuffel Terrace and Annex and Mountain View Apartments in Orange Cove, and Rios Terrace 1 and 2 and Mendota Apartments in Mendota. On Friday, Galante, media and housing industry guests toured Cedar Courts located at 4430 E. Hamilton Ave. in Fresno. Located near the Fresno Fairgrounds, Cedar Courts was constructed in 1954 and has 149 units in 74 duplexes of family housing ranging from one- to five-bedrooms. Ken Cobarrubias, Cedar Courts property manager, said the housing development needs new landscaping and some changes to the housing including a second bathroom added to units of three bedrooms or more. Also, water coolers would be replaced with air-conditioning units. In addition, a larger meeting room is planned along with a field for children to play on. Cobarrubias said Cedar Courts, which bases rent on 30 percent of the family’s gross monthly income, has a waiting list in the thousands. Prior to the tour, Galante and Mayor Swearengin held a roundtable with local housing leaders and advocates to discuss the Obama Administration’s implementation of the Rental Assistance Demonstration. “Thanks to President Obama for allowing us to rebuild our public housing, said Henery Perea, District 3 supervisor and chairman of the board during a press conference. “This will benefit us.” The goal of the demonstration is to preserve and enhance the country’s affordable housing stock. Attendees agreed that with the loss of redevelopment money preservation of public housing is vital. “We need to be more creative with the loss of redevelopment funds,” said Santa Barbara Mayor Helene Schneider, who was on hand for the roundtable discussion. HUD also selected Santa Barbara for its Rental Assistance Demonstration. “We use what we have and enhance what we have,” Schneider said.
URL to original article: http://www.thebusinessjournal.com/news/construction/4566-swearengin-housing-program-to-bring-750-jobs-to-fresno
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Fresno Housing Authority has received a big boost in financial support of local public housing rehabilitation. The Department of Housing and Urban Development selected the authority to be a part of its Rental Assistance Demonstration (RAD) program that allows the authority to use private sector funding as well as equity in current developments to pay for affordable housing building improvements. The local economy will receive a positive jolt in the form of 750 new jobs for construction and installation workers, Fresno Mayor Ashley Swearengin reported. The result is that public housing in Southeast Fresno, Orange Cove and Mendota could see improvements started in 2014. Without the RAD program, needed rehabilitation of the buildings could have taken as long as 30 years. That was a troubling prospect for the Fresno Housing Authority. The authority reports that the stock of public and affordable housing across the county is aging and deteriorating. Cost of the needed improvements has soared to more than $100 million. However, the authority only receives $3 million a year for capital improvements. In addition, communities needed alternatives as the state’s redevelopment funding came to a halt last year. “This is a unique opportunity to reinvest in our properties in the city of Fresno and throughout Fresno County,” said Preston Prince, Fresno Housing Authority chief executive officer and executive director. “RAD will enable us to create communities that have a more distinct sense of place for our residents.” The authority saw a potential solution in the RAD program, applied to it, and was recently selected to participate. Fresno County was one of 65 housing authorities selected in the first round of RAD. “RAD is a better, smarter way to preserve affordable housing stock,” said Carol Galante, U.S. Federal Housing Administration commissioner, who was in Fresno Friday for an informative gathering and celebration of Fresno’s participation in RAD. Swearengin, also on hand, pointed out that that RAD help both low-income renters and the workers who will make improvements to public housing. “I am a very happy mayor today,” Swearengin said. The new funding resources will be used to make improvements to housing units including upgrades to kitchens and bathrooms and the addition of laundry rooms. Infrastructure improvements are part of the plan and include repair and replacement of sewer and water lines. Buildings will be renovated to provide access to backyards. The authority has engaged multiple stakeholders in the process to ensure the many needs are addressed. Public housing including in the rehabilitation projects include Cedar Courts I and 2, Viking Village and Inyo Terrace in Southeast Fresno, Kuffel Terrace and Annex and Mountain View Apartments in Orange Cove, and Rios Terrace 1 and 2 and Mendota Apartments in Mendota. On Friday, Galante, media and housing industry guests toured Cedar Courts located at 4430 E. Hamilton Ave. in Fresno. Located near the Fresno Fairgrounds, Cedar Courts was constructed in 1954 and has 149 units in 74 duplexes of family housing ranging from one- to five-bedrooms. Ken Cobarrubias, Cedar Courts property manager, said the housing development needs new landscaping and some changes to the housing including a second bathroom added to units of three bedrooms or more. Also, water coolers would be replaced with air-conditioning units. In addition, a larger meeting room is planned along with a field for children to play on. Cobarrubias said Cedar Courts, which bases rent on 30 percent of the family’s gross monthly income, has a waiting list in the thousands. Prior to the tour, Galante and Mayor Swearengin held a roundtable with local housing leaders and advocates to discuss the Obama Administration’s implementation of the Rental Assistance Demonstration. “Thanks to President Obama for allowing us to rebuild our public housing, said Henery Perea, District 3 supervisor and chairman of the board during a press conference. “This will benefit us.” The goal of the demonstration is to preserve and enhance the country’s affordable housing stock. Attendees agreed that with the loss of redevelopment money preservation of public housing is vital. “We need to be more creative with the loss of redevelopment funds,” said Santa Barbara Mayor Helene Schneider, who was on hand for the roundtable discussion. HUD also selected Santa Barbara for its Rental Assistance Demonstration. “We use what we have and enhance what we have,” Schneider said.
URL to original article: http://www.thebusinessjournal.com/news/construction/4566-swearengin-housing-program-to-bring-750-jobs-to-fresno
For further information on Fresno Real Estate check: http://www.londonproperties.com
Lennar Homes wins 2012 ‘green’ award
Source: The Business Journal
Lennar Homes has been awarded Build It Green’s 2012 GreenPoint Rated Award for its energy-efficient homes. Lennar’s homes in the Central Valley display the latest in green building techniques and construction; they are engineered to be energy-efficient and environmentally friendly. “We pride ourselves in building homes that are not only good for the families who live in them but for the environment as well,” said Mike Miller, Lennar’s Central Valley division president, in a release. GreenPoint Rated rewards building professionals who design and build green homes by allowing them to brand their products with a recognizable seal of approval. Participating in GreenPoint Rated helps builders meet a growing consumer demand for green homes. GreenPoint Rated is a project of Build It Green, a non-profit organization whose goal is to promote energy-efficient homes in California.
URL to original article: http://www.thebusinessjournal.com/news/energy-and-environment/4559-lennar-homes-wins-2012-green-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
Lennar Homes has been awarded Build It Green’s 2012 GreenPoint Rated Award for its energy-efficient homes. Lennar’s homes in the Central Valley display the latest in green building techniques and construction; they are engineered to be energy-efficient and environmentally friendly. “We pride ourselves in building homes that are not only good for the families who live in them but for the environment as well,” said Mike Miller, Lennar’s Central Valley division president, in a release. GreenPoint Rated rewards building professionals who design and build green homes by allowing them to brand their products with a recognizable seal of approval. Participating in GreenPoint Rated helps builders meet a growing consumer demand for green homes. GreenPoint Rated is a project of Build It Green, a non-profit organization whose goal is to promote energy-efficient homes in California.
URL to original article: http://www.thebusinessjournal.com/news/energy-and-environment/4559-lennar-homes-wins-2012-green-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, January 2, 2013
Mortgage industry fares well in fiscal cliff deal, debt forgiveness law survives
Source: Housingwire
By Kerri Ann Panchuk
The mortgage industry can breath a sigh of relief with the final fiscal cliff deal bringing back a popular tax break on mortgage insurance premiums and debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction. A topic that is still up for discussion and likely to surface later in the year is whether the popular mortgage interest tax deduction will be part of a long-term deficit reduction plan. Still, the deal passed by the Senate and House on Jan. 1 is one that leaves room for hope in the housing market. The American Taxpayer Relief Act of 2012 apparently extends a law that expired at the end of 2011, which allowed for the deductibility of mortgage insurance premiums, according to a research report from Isaac Boltansky with Compass Point Research & Trading. The law now applies to fiscal years 2012 and 2013. "The law dictates that eligible borrowers who itemize their federal tax returns and have an adjusted gross income (AGI) of less than $100,000 per year can deduct 100% of their annual mortgage insurance premiums," Compass Point said. "Certain borrowers with AGIs above $100,000 may benefit from the deductibility as well but are subject to a sliding scale. The tax break covers private mortgage insurance as well as mortgage insurance provided by the FHA, the VA, and the Rural Housing Service. In 2009, about 3.6 million taxpayers claimed the mortgage insurance deduction," the research firm added. One of the more watched provisions of the fiscal cliff was the Mortgage Forgiveness Debt Relief Act of 2007, which was set to expire on Dec. 31. The fiscal cliff deal extends it for another year, meaning homeowners who experience a debt reduction through mortgage principal forgiveness or a short sale are exempt from being taxed on the forgiven amount. "The amount extends up to $2 million of debt forgiven on the homeowner's principal residence," Compass Point Research & Trading said. "For homeowner's to qualify, their debt must have been used to 'buy, build, or substantially improve' their principal residence and be secured by that residence. The law, which was passed in 2007 with a 5-year sunset provision, will now be in effect until Jan. 1, 2014." Another minor win for housing is a provision tied to the government's plan to increase the capital gains tax rate from 15% to 20% for individuals who earn more than $400,000. While in theory, this is harder on higher-income homeowners, Compass Point sees a silver lining through an exclusion. Compass Point notes the law "states that only gains of more than $250,000 for individuals ($500k for households) are subject to taxes on the excess portion of capital gains. Point being, in order for an individual homeowner to be impacted by the increased capital gains tax rate they would need to have an adjusted gross income above $400,000 and gain more than $250,000 from the sale of the property. Since this exclusion threshold remained intact, the impact of the capital gains tax increase is limited."
URL to original article: http://www.housingwire.com/news/2013/01/02/mortgage-industry-fares-well-fiscal-cliff-deal-debt-forgiveness-law-survives
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The mortgage industry can breath a sigh of relief with the final fiscal cliff deal bringing back a popular tax break on mortgage insurance premiums and debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction. A topic that is still up for discussion and likely to surface later in the year is whether the popular mortgage interest tax deduction will be part of a long-term deficit reduction plan. Still, the deal passed by the Senate and House on Jan. 1 is one that leaves room for hope in the housing market. The American Taxpayer Relief Act of 2012 apparently extends a law that expired at the end of 2011, which allowed for the deductibility of mortgage insurance premiums, according to a research report from Isaac Boltansky with Compass Point Research & Trading. The law now applies to fiscal years 2012 and 2013. "The law dictates that eligible borrowers who itemize their federal tax returns and have an adjusted gross income (AGI) of less than $100,000 per year can deduct 100% of their annual mortgage insurance premiums," Compass Point said. "Certain borrowers with AGIs above $100,000 may benefit from the deductibility as well but are subject to a sliding scale. The tax break covers private mortgage insurance as well as mortgage insurance provided by the FHA, the VA, and the Rural Housing Service. In 2009, about 3.6 million taxpayers claimed the mortgage insurance deduction," the research firm added. One of the more watched provisions of the fiscal cliff was the Mortgage Forgiveness Debt Relief Act of 2007, which was set to expire on Dec. 31. The fiscal cliff deal extends it for another year, meaning homeowners who experience a debt reduction through mortgage principal forgiveness or a short sale are exempt from being taxed on the forgiven amount. "The amount extends up to $2 million of debt forgiven on the homeowner's principal residence," Compass Point Research & Trading said. "For homeowner's to qualify, their debt must have been used to 'buy, build, or substantially improve' their principal residence and be secured by that residence. The law, which was passed in 2007 with a 5-year sunset provision, will now be in effect until Jan. 1, 2014." Another minor win for housing is a provision tied to the government's plan to increase the capital gains tax rate from 15% to 20% for individuals who earn more than $400,000. While in theory, this is harder on higher-income homeowners, Compass Point sees a silver lining through an exclusion. Compass Point notes the law "states that only gains of more than $250,000 for individuals ($500k for households) are subject to taxes on the excess portion of capital gains. Point being, in order for an individual homeowner to be impacted by the increased capital gains tax rate they would need to have an adjusted gross income above $400,000 and gain more than $250,000 from the sale of the property. Since this exclusion threshold remained intact, the impact of the capital gains tax increase is limited."
URL to original article: http://www.housingwire.com/news/2013/01/02/mortgage-industry-fares-well-fiscal-cliff-deal-debt-forgiveness-law-survives
For further information on Fresno Real Estate check: http://www.londonproperties.com
House accepts latest fiscal cliff plan
Source: Housingwire
The last-minute deal-making on Capitol Hill may have helped avert the fiscal cliff for now, but many commentators expressed pessimism over the agreement and the distressing sight of lawmakers allowing the world’s largest economy to teeter near economic disaster.
By Daniel Strieff, NBC News
The last-minute deal-making on Capitol Hill may have helped avert the fiscal cliff for now, but many commentators expressed pessimism over the agreement and the distressing sight of lawmakers allowing the world’s largest economy to teeter near economic disaster. “This is a bad bill that made a bad situation worse,” Richard Haas, the president of the Council on Foreign Relations, said Wednesday on MSNBC’s Morning Joe. “The only thing it did was avoiding sending the signal (to the rest of the world) that we’re reckless and out of control,” he added. Consumers, businesses and financial markets have been rattled by the months of budget brinkmanship. The crisis ended when dozens of Republicans in the House of Representatives buckled and backed tax hikes approved by the Democratic-controlled Senate. But even with the agreement, more budget drama is expected on the way. In February, Congress will have to decide what to do about a slew of other spending cuts. Then, in March, lawmakers will decide on whether to increase the federal borrowing limit. “We could see an early lift in the markets because of relief the deal went through,” Gary Thayer, the chief macro strategist at Wells Fargo Advisors, told The New York Times. “The response may be muted because the deal left out many long-term issues.” 'A missed opportunity' Erskine Bowles and Alan Simpson, who headed a deficit commission for Obama, said lawmakers missed a "magic moment to do something big" for the American economy. “The deal approved today is truly a missed opportunity to do something big to reduce our long term fiscal problems, but it is a small step forward in our efforts to reduce the federal deficit,” they said in a joint statement released Tuesday. PhotoBlog: Deal done, Obama heads back to Hawaii with a weary wink In a scathing editorial, the Wall Street Journal called for the parties to go their own ways in Congress and tried to rally Republicans against Obama. “Having been cornered into letting Democrats carry this special-interest slag heap through the House, Speaker John Boehner should from now on cease all backdoor negotiations and pursue regular legislative order. House Republicans should pursue their own agenda and let Mr. Obama and Senate Democrats pursue theirs. Mr. Obama has his tax triumph. Let it be his last,” it wrote on the editorial page. Economists had been warning that the tax increases and spending cuts could take a chunk out of the U.S. economy. But early Wednesday, world markets registered relief over the deal. Benchmarks in Australia and Hong Kong boomeranged on the first trading day of the year. Asian markets had slipped on Monday, fearing that negotiations over the measure might collapse. Many analysts were gloomy about long-term prospects. “The process was so chaotic and the outcome so unsatisfactory that we are likely to see a further U.S. downgrade at some point,” Steven Englander, fixed-income strategist at Citi, wrote in a research note. But China's state news agency Xinhua took a more severe view, warning the United States must get to grips with a budget deficit that threatened not a "fiscal cliff" but a "fiscal abyss." Most of China's $3.3 trillion foreign exchange reserves are held in dollars. Bipartisan outrage after House skips vote on $60 billion Sandy aid bill For the Washington Post, the entire episode was depressing. The newspaper expressed discouragement for what the episode suggests for political compromise going forward. “The United States will have to wait longer yet for its inevitable budget reckoning,” it wrote in an editorial. “We hope the nation’s leaders will be able to accomplish in stages what they have been unable to do in a series of self-imposed crises: raise more revenue and significantly reduce future entitlement spending. But the fiscal cliff episode offers little encouragement,” the newspaper concluded.
URL to original article: http://www.housingwire.com/fastnews/2013/01/02/house-accepts-latest-fiscal-cliff-plan
For further information on Fresno Real Estate check: http://www.londonproperties.com
The last-minute deal-making on Capitol Hill may have helped avert the fiscal cliff for now, but many commentators expressed pessimism over the agreement and the distressing sight of lawmakers allowing the world’s largest economy to teeter near economic disaster.
By Daniel Strieff, NBC News
The last-minute deal-making on Capitol Hill may have helped avert the fiscal cliff for now, but many commentators expressed pessimism over the agreement and the distressing sight of lawmakers allowing the world’s largest economy to teeter near economic disaster. “This is a bad bill that made a bad situation worse,” Richard Haas, the president of the Council on Foreign Relations, said Wednesday on MSNBC’s Morning Joe. “The only thing it did was avoiding sending the signal (to the rest of the world) that we’re reckless and out of control,” he added. Consumers, businesses and financial markets have been rattled by the months of budget brinkmanship. The crisis ended when dozens of Republicans in the House of Representatives buckled and backed tax hikes approved by the Democratic-controlled Senate. But even with the agreement, more budget drama is expected on the way. In February, Congress will have to decide what to do about a slew of other spending cuts. Then, in March, lawmakers will decide on whether to increase the federal borrowing limit. “We could see an early lift in the markets because of relief the deal went through,” Gary Thayer, the chief macro strategist at Wells Fargo Advisors, told The New York Times. “The response may be muted because the deal left out many long-term issues.” 'A missed opportunity' Erskine Bowles and Alan Simpson, who headed a deficit commission for Obama, said lawmakers missed a "magic moment to do something big" for the American economy. “The deal approved today is truly a missed opportunity to do something big to reduce our long term fiscal problems, but it is a small step forward in our efforts to reduce the federal deficit,” they said in a joint statement released Tuesday. PhotoBlog: Deal done, Obama heads back to Hawaii with a weary wink In a scathing editorial, the Wall Street Journal called for the parties to go their own ways in Congress and tried to rally Republicans against Obama. “Having been cornered into letting Democrats carry this special-interest slag heap through the House, Speaker John Boehner should from now on cease all backdoor negotiations and pursue regular legislative order. House Republicans should pursue their own agenda and let Mr. Obama and Senate Democrats pursue theirs. Mr. Obama has his tax triumph. Let it be his last,” it wrote on the editorial page. Economists had been warning that the tax increases and spending cuts could take a chunk out of the U.S. economy. But early Wednesday, world markets registered relief over the deal. Benchmarks in Australia and Hong Kong boomeranged on the first trading day of the year. Asian markets had slipped on Monday, fearing that negotiations over the measure might collapse. Many analysts were gloomy about long-term prospects. “The process was so chaotic and the outcome so unsatisfactory that we are likely to see a further U.S. downgrade at some point,” Steven Englander, fixed-income strategist at Citi, wrote in a research note. But China's state news agency Xinhua took a more severe view, warning the United States must get to grips with a budget deficit that threatened not a "fiscal cliff" but a "fiscal abyss." Most of China's $3.3 trillion foreign exchange reserves are held in dollars. Bipartisan outrage after House skips vote on $60 billion Sandy aid bill For the Washington Post, the entire episode was depressing. The newspaper expressed discouragement for what the episode suggests for political compromise going forward. “The United States will have to wait longer yet for its inevitable budget reckoning,” it wrote in an editorial. “We hope the nation’s leaders will be able to accomplish in stages what they have been unable to do in a series of self-imposed crises: raise more revenue and significantly reduce future entitlement spending. But the fiscal cliff episode offers little encouragement,” the newspaper concluded.
URL to original article: http://www.housingwire.com/fastnews/2013/01/02/house-accepts-latest-fiscal-cliff-plan
For further information on Fresno Real Estate check: http://www.londonproperties.com
Subscribe to:
Posts (Atom)
