Half a Dozen States Delay Tax Refunds

http://www.nytimes.com/2010/06/02/us/02refund.html?hp

The article talks of how several states are holding out on sending refunds in order to keep the money on their books until their next fiscal year starts (most are in early summer). This goes along with the money crunch we've been hearing about local and state governments having and it makes sense for these states to do this, but its with the unfortunate side effect of hurting the taxpayers who badly need the money. Thoughts?

More on Forclosures

http://timiacono.com/index.php/2010/06/01/a-homemade-mortgage-modification/

Another article that goes along with Matt's really well. It discusses mortgage modifications (something that has been put in place to help homeowner's in foreclosure). I don't think that it is a good way of helping, but it is a step in helping - but are people using it for the right reasons??

Strategic Foreclosures

Really good summary of a NYT study on homeowners choosing to foreclose. One guy summed up the decision very well:

“I’ve done the math, and it doesn’t make sense to pay the mortgage. I can rent the same house a block over for half of what I am paying. I am so far underwater that if I stay here, struggle, and make all the payments, in 10 years, I will merely be back to break even. Why bother?

Like all the big banks have all done, I’ve made the calculation that it is financially beneficial to default on the loan — so that is what I am doing. As Sonny was told in the Godfather, “This is business, not personal…”

To me, this article shows the increasing need for the government to do something about foreclosures and strategic foreclosures. Do you think what we've already done is enough? What are your thoughts?

http://www.ritholtz.com/blog/2010/06/walk-aways-nyt-version/

Goodbye to Full-time Jobs With Benefits?

"James Stoeckmann, senior practice leader at WorldatWork, a professional association of human resource executives, believes that full-time employees could become the minority of the nation's workforce within 20 to 30 years, leaving employees without traditional benefits such as health coverage, paid vacations and retirement plans, that most workers take for granted today."

Here's the article:

http://money.cnn.com/2010/06/01/news/economy/contract_jobs/index.htm

Seeing as how we are all about to enter the workforce, some of us in a matter of weeks, I feel like this hits home because we've grown up expecting to get these benefits from our future employers but now it's looking a little grim for the future of these kinds of extras. Thoughts?

Cities on the Verge of Default

http://money.cnn.com/2010/05/28/news/economy/american_cities_broke.fortune/index.htm

The article takes note of how several cities across the nation are deep in debt, including Detroit (no surprise there). The numbers aren't huge in comparison to what we're used to looking at this quarter but it all adds up and several things are going to end up being cut at the local level. What does this mean for public education and social welfare programs?

Gapminder: 200 Years That Changed the World - Grasping Reality with Both Hands

Why capitalism is the best institutional structure for the economy.


Gapminder: 200 Years That Changed the World - Grasping Reality with Both Hands