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Bernanke Outlines Steps to Avoid Future Crises

Bernanke Outlines Steps to Avoid Future Crises
Wall Street Journal

U.S. Federal Reserve Chairman Ben Bernanke on Tuesday outlined steps he thinks would help avert future financial crises, saying the time for such a longer-term discussion has come even as policy makers address the worst crisis since the 1930s.

"In the near term, governments around the world must continue to take forceful and, when appropriate, coordinated actions to restore financial market functioning and the flow of credit," Mr. Bernanke said. In the U.S., officials are determined "to ensure that systemically important financial institutions continue to be able to meet their commitments," Mr. Bernanke said.

"Until we stabilize the financial system, a sustainable economic recovery will remain out of reach," he said.


Interactive Graphic: Foreclosures in Sacramento County
The Sacramento Bee

This interactive map shows the number of Sacramento County foreclosures in a week picked at random — the second week of January — for each of the last five years.


All Boarded Up
New York Times Magazine

Tony Brancatelli, a Cleveland City Councilman, yearns for signs that something like normal life still exists in his ward. Early one morning last fall, he called me from his cellphone. He sounded unusually excited. He had just visited two forlorn-looking vacant houses that had been foreclosed more than a year ago. They sat on the same lot, one in front of the other. Both had been frequented by squatters, and Brancatelli had passed by to see if they had been finally boarded up. They hadn’t. But while there he noticed with alarm what looked like a prone body in the yard next door. As he moved closer, he realized he was looking at an elderly woman who had just one leg, lying on the ground.

Posted: Tue, March 10 2009 8:53 AM by Octavion

Comments

Barbara said:

From Nasdaq:Hard economic times feuled by Europe's sovereign-debt crisis and concerns of another US recession have slowed growth in property values and rents. Bloomberg reports that money globally earmarked for real-estate investment through 2012 fell to about $316 billion from $329 billion six months ago.The change has had a significant impact on the house-flipping market   the practice of buying houses with the intention of quickly reselling for a profit.Tom Popik, research director for Campbell Surveys, which tracks housing trends for major banks and government agencies noticed that it has become increasingly difficult in the past five years to flip homes for large profits. This July, investors flipped only 50% of their purchases, down from 75% a year earlier,  he reports to CNNMoney.As a result, house flippers have become a dying breed of real estate investors. In its wake comes the growing home rentals market, which experienced a 25% increase in demand from a couple years ago.Real estate analysts find the shift in investments has strong ties to the decreasing liquidity in the market. In the old days, house flippers could expect to flip and earn their profit in the short term, but with lack of funding from buyers flippers can now expect to hold onto a home for roughly five years. By renting out homes an investor can expect to start receiving returns instead of drawing on their own assets.The shift emphasizes the increasing burden of unwanted homes on the market as their demand declines from both real estate investors and would-be homeowners.

# March 10, 2012 6:57 PM

Munir said:

Thanks for the response.  After doing some more rdeniag, one practitioner suggests the credit trust would still be a good place to transfer assets that will appreciate such that they could be taxed in the survivor's estate.  Of course, they lose the step-up.  Also, using the credit trust ensures that the assets are transferred to the desired heirs.

# March 12, 2012 9:34 PM
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