As the Stock Market Swings
Yet it’s hard to escape a vague sense of unease. The swoon that began a week before last was quickly attributed, at...
Yet it’s hard to escape a vague sense of unease. The swoon that began a week before last was quickly attributed, at least in part, to China’s economic problems. Just as quickly, many investors and policy makers concluded that China’s leaders would manage those problems in ways that would allow the global economy to chug along. But what if they don’t? A prolonged slowdown is more likely to provoke social unrest in China than in other developed economies, because stability there has been based on high growth rather than political and other institutional arrangements. The prospect of social unrest, in turn, raises economic and national-security concerns not raised by economic crises elsewhere.
Closer to home, market volatility has significantly reduced the odds that the Federal Reserve will begin to raise interest rates at its next meeting in mid-September. A delay is nothing to lament, because the still significant slack in the labor market would make an increase this year premature. The Fed has generally played down the potential impact of China and other international headwinds, while asserting that the negative effects of low oil prices and a strong dollar were likely to be temporary. But these forces are proving potent and long lasting — further reason to give the Fed pause.
Renewed stock market downdrafts could disrupt the economy, and the Fed’s plans, in other ways. The recovery in housing is an important gauge of economic health. But this year, the big increases in sales and prices have come at the high end of the market, where investment wealth is assumed to be more of a factor in the decision to buy than wages and salary. The very real possibility is that if the stock market falters again, so too will the housing market.
Economic fundamentals today are no different than they were before the market took a walk on the wild side. Inflation is well below the Fed’s target of 2 percent. Unemployment is still higher than it was before the last recession and wages have shown no signs of rising. The economy is being propelled forward by consumers and other advantages, and being held back by insufficient government spending and other disadvantages.
It all works out to an economy growing at 2.5 percent. At that modest pace, the United States cannot be of much help if other economies falter. But it can rebound from a market swoon, at least for now.
Source: New York Times
Housing advocates accuse Wells Fargo of damaging communities through foreclosures
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a ...
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a new report released Tuesday from a consortium of grassroots activists and housing advocates, 11,616 of those loans are currently in foreclosure, out of roughly 65,000 homes in foreclosure in the state.
The report accuses Wells Fargo of damaging both California communities and the state’s overall economy. It was produced by the Alliance of Californians for Community Empowerment, the Center for Popular Democracy, and the Home Defenders League.
Ross Rhodes of the Alliance of Californians for Community Development said on a conference call Tuesday that Wells Fargo was singled out because the bank is "responsible for handling more delinquent loans than any other servicer."
He added that Wells Fargo is failing to live up to the terms of last year's mortgage settlement between the states and the country's biggest banks. Rhodes said that Wells is lagging behind both Bank of America and Chase in efforts to keep people in their homes.
In a statement, Wells Fargo said that its foreclosure rate in California is lower than its rate in the nation as a whole and that the report "appears to be an attempt to question Wells Fargo’s longstanding track record as a fair and responsible lender and servicer."
The bank emerged from the financial crisis relatively unscathed. But in recent years it has been called to task for past lending practices. It was was fined $175 million by the Justice Department in 2012 for steering minorities into costly subprime loans before the housing crisis.
The bank was also fined $148 million by the Securities and Exchange Commission for violations perpetrated by Wachovia Securities (Wells took control of Wachovia in 2008, at the height of crisis, when major U.S. banks were failing).
The report also argues that Wells Fargo’s foreclosures in the state are disproportionately affecting African American and Latino neighborhoods and could wind up costing the state $20 million in lost tax revenue.
The authors say that the solution is “principal reduction” — adjusting mortgages to reflect the reduced market value of homes in foreclosure.
Numerous economists support the idea of principal reduction, but the notion has been resisted at the federal level, most notably by Edward DeMarco, acting director of the Federal Housing Finance Agency, which has overseen mortgage giants Fannie Mae and Freddie Mac since they were taken into receivership during the financial crisis.
DeMarco has supported principal forbearance, a method that would not reduce the amount of mortgages held by Fannie and Freddie but rather restructure them so that homeowners could see more affordable payments.
The report's consortium of advocates doesn't favor forbearance, arguing that it can't address the core issue of borrowers drowing in debt.
But as tempting as principal reduction might be in theory, in practice is doesn't always lead to the homeowner staying in the home.
Economist Stuart Gabriel is Director of the Ziman Center for Real Estate at UCLA. He said that principal reduction isn't a "cure all."
"For borrowers that are deeply underwater, a modest amount of principal reduction is going to make no difference the ultimate outcome, which would be default and foreclosure," Gabriel said.
In its statement, Wells Fargo called its principal reduction efforts since 2009 "aggressive." But the advocacy groups said that Wells Fargo is one of the most difficult banks to work with, and that it engages in "dual tracking" — undertaking loan modifications at the same time it moves forward with the foreclosure process.
The report also recommends that Wells Fargo disclose more data about its foreclosures, and specifically about the impact that foreclosures are having on minority neighborhoods in California.
Gabriel said that more transparency about lending practices and the racial and geographical makeup of loan portfolios is always a good thing because additional information improves markets.
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Arpaio Meets Virtually No DOJ Criteria for a Pardon
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of...
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of new norms if he announces a pardon Tuesday night, as he has said he might, for former Arizona Sheriff Joe Arpaio. Legal analysts and Dept. of Justice guidelines reviewed by TYT suggest that granting a presidential pardon to the controversial former sheriff would go against virtually every recommended criteria the DOJ has for appropriate pardon candidates.
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Bill Would Make Maryland Employers Set Work Schedules Earlier
As Labor Day approaches, advocates in Maryland are pushing for a change in how workers receive their schedules....
As Labor Day approaches, advocates in Maryland are pushing for a change in how workers receive their schedules.
Take Hilaria, who lives in Gaithersburg and works at a fast food restaurant. (That's all she'll say on the record, fearing potential reprisal from her employer.) Hilaria says she often doesn't receive her weekly work schedule until right before she has to start it.
"Sometimes it three to four days before the schedule [starts]," Hilaria says. "So we don't have enough time for activities — like for my daughter in school, or for my appointment with a doctor."
Advocates for workers argue Hilaria's story is not uncommon for those in the restaurant and hospitality industries. They're pushing the Maryland General Assembly to approve a measure next year that would make employers issue schedules three weeks in advance. It's called the Fair Work Week Act.
Del. David Moon of Montgomery County says it would provide protections for workers who don't have many.
"Schedules change. You're asked to fill in for people at the last second. It's a busy night and all of the sudden you have to jump in and completely alter your schedule. And if you can't, you're often made to find a replacement yourself," Del. Moon says.
A similar bill never received a vote during this year's session in Annapolis. Nationwide, Fair Work Week bills have been more successful at the city and county level. San Francisco approved a similar measure last year, and Albuqueque, New Mexico, is currently debating one.
Source: WAMU 88.5
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to...
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to President Donald Trump.
A newly launched website called BackersOfHate.org breaks down how nine major corporations are affiliated with the Trump administration and the ways they will gain from the Trump agenda. The website also outlines current company policies that already negatively impact people of color, immigrants, Indigenous communities, and low income populations — similar to critiques of the Trump agenda.
Read full article here.
Practices of 13 Retailers Questioned by New York Lawyers
The Market Business - April 14, 2015, by Rachel M - The lawyer at New York has initiated inquiry against 13 retailers,...
The Market Business - April 14, 2015, by Rachel M - The lawyer at New York has initiated inquiry against 13 retailers, inquiring them if workers are asked to come on call for short notice shifts and spend less than 4 hours when employees are required to report to operate, stating the practice as illegal in NY.
On-call scheduling requires workers to call in just a few hours in advance or the night before to see if they need to come in to work. If not needed, the employee will receive no pay for the day.
“For many workers, that is too little time to make arrangements for family needs, let alone to find an alternative source of income to compensate for the lost pay,”
A New York state law requires that employees who are asked to come into work must be paid for at least four hours atminimum wage or the number of hours in the regularly scheduled shift, whichever is less, even if the employee is sent home.
California has a similar law that says employees must be paid for half of their usual time — two to four hours — if they are required to come in to work but are not needed or work less than their normal schedule.
The letter was also sent to J. Crew Group Inc.; L Brands, which owns Victoria’s Secret and Bath and Body Works; Burlington Stores Inc.; TJX Cos.; Urban Outfitters Inc.; Sears Holdings Corp.; Williams-Sonoma Inc.; Crocs Inc.; Ann Inc., which owns Ann Taylor; and J.C. Penney Co.
The letters ask the retailers for more information about how they schedule employees for work, including whether they use on-call shifts and computerized scheduling programs.
Rachel Deutsch, an attorney at the Center for Popular Democracy, a New York worker advocacy group, said on-call scheduling can make it difficult for workers to arrange child care or pick up a second job.
“These are folks that want to work,” she said. “They’re ready and willing to work, and some weeks they might get no pay at all even though they set aside 100% of their time to work.”
Danielle Lang, a Skadden fellow at Bet Tzedek Legal Services in Los Angeles, said the attorney general’s action could have repercussions in other states.
“The New York attorney general is a powerful force,” she said. “It’s certainly an issue that’s facing so many of our low-wage workers in California, and anything that puts a highlight on this practice and really pressures employers to think about these practices is a good thing.”
Sears, Target and Ann Inc. said in separate statements that they do not have on-call shifts for their workers. J.C. Penney said it has a policy against on-call scheduling.
TJX spokeswoman Doreen Thompson said in a statement that company management teams “work to develop schedules that serve the needs of both our associates and our company.”
Gap said in a statement that the company has been working on a project with the Center for WorkLife Law at UC Hastings College of the Law to examine workplace scheduling and productivity and will see the first set of data results in the fall.
“Gap Inc. is committed to establishing sustainable scheduling practices that will improve stability for our employees, while helping toeffectively manage our business,” spokeswoman Laura Wilkinson said.
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It’s Time to Put the Brakes on Runaway Drug Prices
It’s Time to Put the Brakes on Runaway Drug Prices
The movement against ICE is born at the grassroots. Groups like Indivisible Project and the Center for Popular...
The movement against ICE is born at the grassroots. Groups like Indivisible Project and the Center for Popular Democracy have also called for defunding ICE.
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New York Fed taps John Williams to be next president
"Today, the Federal Reserve concluded another opaque and controversial Reserve Bank presidential selection process by...
"Today, the Federal Reserve concluded another opaque and controversial Reserve Bank presidential selection process by ignoring the demands of the public and choosing yet another white man whose record on Wall Street regulation and full employment raises serious questions,” said Shawn Sebastian, Fed Up’s director. Fed Up said it submitted a list of nine non-white male candidates to the New York Fed’s search committee and that most of them were never contacted.
Read the full article here.
Latino Construction Workers Continue to Die on the Job Because of Unsafe Conditions
Fox News Latino - January 16, 2015 - A new analysis of federal safety data found that while overall jobs in the...
Fox News Latino - January 16, 2015 - A new analysis of federal safety data found that while overall jobs in the construction industry are getting safer, Latino workers are still getting injured at alarming rates.
According to the data, between 2010 and 2013, the number of deaths among Latinos in the construction industry rose from 181 to 231. The number of deaths also rose in the industry overall, from 774 to 796, but that increase is attributed entirely to Latinos. During the same period, deaths for non-Latino construction workers fell from 593 to 565.
Each day across the country, hundreds of day laborers and migrant workers wait in street corners waiting to get hired. They are sometimes picked up by contractors or subcontractors looking to cut corners by hiring cheap labor that won’t expect benefits – most undocumented workers live in the shadows and, in general, don’t qualify for any federal benefits.
"There’s a clear correlation between low-wage jobs and unsafe jobs," said Occupational Safety and Health Administration chief David Michaels, according to the Nation. "Workers in low wage jobs are at much greater risk of conditions that will make it impossible for them to live in a healthy way, to earn money for their family, to build middle class lives."
Another reason for the spike in deaths is a rise in safety violations on job sites run by smaller, non-union contractors and an unwillingness by some undocumented workers to report violations, according to a 2013 study by the New York State Trial Lawyers Association.
"Contractors aren’t taking simple steps to protect their workers," Connie Razza, from the Center for Popular Democracy, told the New York Daily News. "They are not providing the training and the safety equipment that are required by law."
Advocacy groups are working to combat any changes to New York’s scaffolding law, which organizations like the Center for Popular Democracy say gives incentive to keep workplaces safe. The law holds owners and contractors who did not follow safety rules fully liable for workplace injuries and deaths.
Contractors argue that it has driven up insurance costs to record levels.
Lawmakers, however, have historically blocked any of the proposed changes to the law.
"All we’re looking for is the ability to have the same right as anybody else would in the American jurisprudence system," said Louis J. Coletti, president and CEO of the Building Trades Employers' Association.
In an attempt to make their work environments safer, some day laborers have joined together to seek protection through collective action. In the wake of Hurricane Sandy, some day laborers in New York City turned to one another about the dangerous conditions, and decided together how to deal with them.
The Bay Parkway Community Job Center in Brooklyn brought in safety experts for guidance; community groups and foundations rallied around the laborers, helping them buy their new trailer with several grants.
With the help of organizations such as the Worker’s Justice Project, laborers learned about wage and hour laws, the hazards of exposure to certain building materials and what kinds of actions or treatment by the people who hire them constitute abuse and violations.
"When something isn’t right, at that moment, you may not realize it or attach much significance to it," Rafael Tecpanecatl, a laborer who came from Mexico 11 years ago told Fox News Latino. "I’ve worked many jobs that I realized later were hazardous to my health. I’d get on ladders that were not steady, I’ve sanded walls and cut plywood and had debris go into my eyes and lungs."
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Business Notes: Maryland Among Locations That Could Host 2026 World Cup Games
Business Notes: Maryland Among Locations That Could Host 2026 World Cup Games
“Elected officials across the country are paying close attention to how Amazon and other corporations have responded to...
“Elected officials across the country are paying close attention to how Amazon and other corporations have responded to Seattle’s efforts to confront their affordable housing and homelessness crisis,” Sarah Johnson, director of Local Progress, a national association of progressive elected municipal officials, told the Times.
Read the full article here.
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