The percent of American single-family homes with mortgages in negative equity(1) fell to 21 percent in the third quarter, down from 23 percent in the second, as home values stabilized in the short term and more underwater homeowners lost their homes to foreclosure, according to the third quarter Zillow Real Estate Market Reports(2).

Year-over-year home values in the United States declined for the 11th consecutive quarter, falling 6.9 percent to a Zillow Home Value Index(3) of $190,400. However, the rate of year-over-year decline shrank for the third quarter in a row, meaning home values did not decline as dramatically year-over-year in the third quarter as they did in the second or the first.

In addition, the Zillow Home Value Index remained relatively flat in the short term, declining 0.4 percent from the end of the second quarter to the end of the third quarter. The Zillow Home Value Index measures the value of all homes in an area, and the Q3 Zillow Real Estate Market Reports encompass 156 metropolitan statistical areas (MSAs).

Foreclosure re-sales(4) remained high, making up more than one-fifth (21.4 percent) of all U.S. home sales in September, and made up the majority of sales in several MSAs including the Merced, Calif. MSA (74.2 percent), the Stockton, Calif. MSA (69.3 percent), the Madera, Calif. MSA (68.7 percent), the El Centro, Calif. MSA (68.1 percent) and the Las Vegas MSA (67.5 percent). Additionally, 26.9 percent of home sales nationwide sold for less than what the seller originally paid.

“The decline in the percentage of homeowners with negative equity is a positive sign, and is directly attributable to the stabilization of home values from the second quarter to the third,” said Zillow Chief Economist Stan Humphries. “It is also attributable to many homeowners who were previously underwater on their mortgage losing their homes to foreclosure.

“The next several months will be critical to the housing market. Previously, we’d been expecting to see increasing foreclosure rates during the real estate market’s slow winter season, a confluence of events that would likely drive inventory up and prices down. But now, with the extension of the $8,000 first-time homebuyer tax credit and a new $6,500 credit for some repeat homebuyers, we could see a bump in demand that could partially offset the increased supply of foreclosed homes on the market. The credits are likely to bring continued stabilization in prices over this period, versus the price declines that we almost certainly would see otherwise. Whether this stabilization will be sustainable after the tax credits expire, however, is yet to be seen. Some of the demand that we are buying with tax credits we are also borrowing from the future, and will likely have to pay for later in the form of weaker-than-normal demand.”

Some markets across the country showed encouraging signs in the third quarter. Home values increased year-over-year in 24 of 156 MSAs and remained flat in an additional 16. Only nine MSAs — including the Merced, Calif., State College, Penn., and Salisbury, Md. MSAs — showed increasing year-over-year declines.

The Milwaukee and Boston metropolitan statistical areas were the largest markets to show positive year-over-year changes in home values, with the Zillow Home Value Index rising 2.6 percent in Milwaukee and 1.6 percent in Boston.

The full national report, in its new, interactive format, is available at www.zillow.com/local-info. Additionally, in most areas data is available at the state, metro, county, city, ZIP and neighborhood level.

(1) Negative Equity indicates that the current home value as of Sept. 30, 2009 is less than the original mortgage. To be conservative, principal payments and equity withdrawals since initial loan origination have been excluded from the analysis, which is consistent with standard reporting practices. This metric looks at negative equity of single-family homes with mortgages.

(2) The data in Zillow’s Real Estate Market Reports is aggregated from public sources by a number of data providers for 156 Metropolitan Statistical Areas dating back to 1996. Mortgage and home loan data is typically recorded in each county and publicly available through a county recorder’s office.

(3) The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level is calculated using a weighted average of the median home value for each county. It is expressed in dollars and is for a particular geographic region.

(4) Foreclosure re-sales captures mostly sales of bank-owned (REO) homes. It measures sales of homes that were foreclosed on in the previous 12 months.

Source: Zillow.com

In the face of current and projected future budget shortfalls, The U.S. Conference of Mayors released a survey that shows the economic condition in cities is now serious enough to warrant targeted federal support. In fact, sixty percent of 158 mayors surveyed in 41 states and Puerto Rico say a targeted program of fiscal assistance is needed to help prevent further drastic budget cuts that translate into losses of personnel and reductions in public services.

In cities ranging from Los Angeles and Chicago, to Lima (OH) and Gastonia (NC), two out of three mayors are expecting budget shortfalls this year. Even more – four out of five – are projecting shortfalls in their next fiscal year. In nearly 27 percent of the surveyed cities, this year’s budget shortfalls amount to 10 percent or more of total (operating and capital) budgets; in a few of the cities the shortfalls range from as much as 20 to 30 percent of total budgets.

When asked about next year, the vast majority of mayors (86 percent of survey respondents) say projected shortfalls will be the same or larger than this year’s. Of these, 39 percent expect it will be larger, and 22 percent expect it will be much larger.

More than half of the mayors say that their local budget situation has affected their ability to engage in job-creating projects, despite the funding provided through the American Recovery and Reinvestment Act (ARRA) — the economic stimulus legislation enacted in February.

The vast majority of mayors (more than 86 percent) reported that they had received some funds directly to their cities through the ARRA and had already been authorized to begin work using funds provided. The question of whether ARRA funding to create jobs would go directly to cities rather than through states was a contentious issue during the drafting of the legislation. Further, a USCM report tracking transportation stimulus dollars revealed that cities and metropolitan areas were often shortchanged by state Departments of Transportation when it came to dolling out ARRA funds and often received far less funds than they deserve given their dominate role in the national economy and respective state economies (www.usmayors.org).

“Mayors know that once ARRA is fully implemented, millions of jobs will be saved or created and lasting benefits will be realized. But they also know that the American people are demanding that we save or create more jobs NOW,” said USCM CEO and Executive Director Tom Cochran. “It is clear that when stimulus funds go directly to cities, they are put to work immediately and there is no delay in spending.”

Reporting on areas in which additional federal fiscal assistance could be most effective in creating jobs and meeting local needs, more than nine out of 10 mayors cited local transportation projects, more than eight out of 10 cited community and economic development projects, and more than seven out of 10 cited sewer and water projects.

U.S. mayors are concerned that unemployment numbers in cities are staggering – well beyond national unemployment figures – and continue to grow: 13.9 percent in Long Beach, California; 13.4 percent in Las Vegas, Nevada; 19.4 percent in National City, California; 14.9 percent in Providence, Rhode Island; 11.5 percent in St. Louis, Missouri; and 10.9 percent in Cleveland, Ohio for example.

“Wall Street may be in recovery, but Main Street America is still hurting. Many economists are saying we are coming out of the recession, but we are concerned that we are in a jobless recession with many cities experiencing double-digit unemployment numbers. Hence we must work with Congress and the White House on a response now,” said USCM CEO and Executive Director Tom Cochran.

The U.S. Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more. There are 1,139 such cities in the country today, each represented in the Conference by its chief elected official, the Mayor.

What Is Happening Now in Cities/Metro Areas

In an effort to better understand the employment and city budget crises faced by cities today, the Conference of Mayors is conducting a brief survey of America’s mayors. To date 148 cities ranging in size from Los Angeles and Chicago to those having populations fewer than 10,000 have responded. These cities are spread across 41 states and Puerto Rico. Their responses take us beyond anecdotal information to show the extent to which so many of our cities are sharing the same problems and experiences, and identifying the same needs for assistance to help restore their solvency and put their residents back to work.

• The three employment sectors most often identified by mayors as experiencing the highest levels of unemployment are construction (by 75 percent), manufacturing (by 55 percent), and retail (by 44 percent).

• Two-thirds of the cities (67 percent) project that they will experience a budget shortfall in the current fiscal year.

• Most often cited as the local causes of the expected shortfalls are decline in anticipated sales tax revenue (by 72.5 percent), decline in anticipated service fees (by 54 percent), and decline in anticipated property tax revenues (by 37 percent).

• Nearly three-fourths of the mayors (73.5 percent) report that cuts in state funding to their cities (either grants or passed-through revenues) have contributed to their budget shortfalls.

• Actions most often being taken to avoid budget shortfalls this year include postponing projects or initiatives (by 81 percent), eliminating city positions through attrition (by 75 percent), and reducing purchasing and procurement (by 73 percent).

• More than four in five mayors responding (81 percent) anticipate a budget shortfall in their next fiscal year.

• Of these mayors, 40 percent expect that next year’s shortfall will be larger than the current year’s; 21.5 percent expect it to be much larger. Twenty-four percent of the mayors expect it will be about the same. Fourteen percent expect the shortfall will be smaller, and only one of the cities expects it will be much smaller.

• Half of the mayors report that their budget situation has affected their ability to engage in job-creating projects.

• The vast majority of mayors (88 percent) report that they have been authorized to begin work using ARRA funds provided directly to their ities, and/or they have received the direct ARRA funding so that work could begin and workers could be hired.

• Nearly four in five of these cities (78 percent) have received direct funding through the Community Development Block Grant; 69 percent have received it through the Byrne Justice Assistance Grant; about the same (68.5) percent received it through the Energy Efficiency and Conservation Block Grant. Forty-six percent received COPS hiring grants.

• Mayors say that additional federal assistance can be most effective in creating jobs and meeting local needs if it is focused on local transportation projects such as transit, roads, and bridges (90.5 percent of the mayors cite this), community and economic development (84.4 percent cite this), water and sewer projects (71 percent cite this), energy and environmental projects (67 percent cite this), and public safety personnel (56 percent cite this).

• Most mayors (61 percent) believe that conditions in their cities are serious enough that a program of targeted fiscal assistance is warranted to help prevent further drastic city budget reductions.

Source: U.S. Conference of Mayors

The Spherion Employee Confidence Index decreased by one point to 48.4 in October. The Index, which measures workers’ confidence in their personal employment situation and optimism in the economic environment, reveals that although fewer U.S. workers believe the economy is getting stronger, slightly more workers are optimistic in the future of their current employer.

“Our latest Employee Confidence Index suggests that workers remained concerned about the economy and job market as a whole,” said Roy Krause, President and CEO of Spherion Corporation. “Although economic indicators seem to be pointing in a better direction, confidence levels are likely to bounce around a bit until workers see more definitive signs of a turnaround- such as positive job growth. Undeniably, this downturn has many businesses operating in a ‘doing more with less’ mode, which may become standardized in a post-recessionary economy. Even though the appetite for aggressive hiring may not be seen for some time, companies are starting to talk about the need to potentially add new staff in order to maintain productivity. In a number of cases, this is tied to a desire to be fully “battle ready” for the recovery and to augment teams that may struggle because recession cuts were perhaps a bit too deep. Companies that are ramping up sales activity, retaining top talent and delivering quality customer service will be better poised–and remembered–come recovery time.”

Confidence in Overall Situation:

The Spherion Employee Confidence Index decreased by one point to 48.4 in October. The Index, which measures workers’ confidence in their personal employment situation and optimism in the economic environment, reveals that although fewer U.S. workers believe the economy is getting stronger, slightly more workers are optimistic in the future of their current employer.

Confidence in Macroeconomic Environment:

• Twenty-three percent of U.S. workers believe the economy is getting stronger, decreasing four percentage points from September.
• Seventy percent of workers surveyed believe there are fewer jobs available, increasing one percentage point from the previous month.

Confidence in Personal Employment Situation:

• The percentage of workers reporting confidence in the future of their current employers increased by one percentage point to 64 percent in October.
• The number of workers confident in their ability to find a new job showed no change from the previous month, with 38 percent reporting optimism.

Job Security:

• Seventy-one percent of workers say they are unlikely to lose their jobs in the next year, increasing by one percentage point from last month’s reading.

Job Transition:

• Thirty-two percent of workers are likely to look for a new job in the next 12 months, representing a decrease of three percentage points from September.

Confidence by Gender:

• In October, more men than women are confident in their ability to find a new job. Specifically, 40 percent of men and 35 percent of female workers cited this.
• According to the latest results, more females than males are confident in the future of their current employer in October, with 66 percent of women and 62 percent of men reporting confidence.
• Fewer men and women are likely to job search in the next 12 months. In October, 34 percent of men and 30 percent of women reported the likelihood to look for a new job, versus 39 percent of men and 31 percent of women last month.

Confidence by Age:

• Workers ages 45-54 are the least likely to believe the economy is getting stronger, with only 18 percent of workers in this age group believing so.
• Forty-one percent of workers ages 18-34 are confident in their ability to find a new job. This is the highest amongst all age groups and a two percentage point increase from September.
• Forty-five percent of workers between the ages of 18-34 report that they are likely to look for a new job in the next year. This is the highest reading for all age brackets. On the contrary, only 20 percent of workers 55+ are likely to make a job transition in the next 12 months.

Confidence by Income:

• Workers earning $75K or greater are the most likely to believe the economy is getting stronger, with 29 percent indicating they believe so compared to 16 percent of those earning less than $35K.
• Workers earning less than $35K are the least confident in the future of their current employer with 50 percent expressing confidence; while workers earning $75K or greater are the most optimistic with 70 percent reporting confidence.
• Forty-four percent of workers earning less than $35K are likely to look for a new job in the next year. This is the highest reading across all income cohorts for the third consecutive month.

Source: Spherion Corporation

Despite the recent credit crisis and headlines about the possible demise of the dollar as the world’s dominant currency, it is unlikely that the world will scrap the current reserve system anytime soon, CornerCap Investment Counsel concluded in a recent report (go to for the complete report).

While the dollar will inevitably surrender some of its dominance, too many major players like China and OPEC have a vested interest in a financially strong U.S. to undermine the dollar’s position too strongly, according to Cannon Carr, chief investment officer.

Instead, Carr anticipates an orderly transition to a post-dollar world, one that will take a decade or more, and probably with U.S. leadership.

“The dollar’s position as the world’s dominant currency has been key to our standard of living since World War II, and its standing plays a vital role in the U.S. recovery,” Carr said. “Moving radically away from the U.S. dollar as the dominant currency would limit our return to economic growth, at a time when other countries need a healthy US to boost their own economies,” he added.

However, high U.S. debt levels and deficits, when combined with a weak growth outlook, do increase the risk to a currency system tied to the dollar. With a sustained weak dollar, non-U.S. countries can find their exports expensive and their own economies influenced by poor policy choices by the US. So while other nations can tolerate a weak dollar, an irresponsibly sustained weak dollar jeopardizes their financial stability and could force them to seek more radical change to the reserve system.

What’s more, without convincing economic growth (say 4% annually); the U.S. will have to balance national debt levels, deficits and government spending to manage the dollar’s position. Special attention must be given to government spending (for growth, social programs, entitlements, or war), which is typically financed through taxation, borrowing, or inflation. Pushing too far in those areas would have serious ramifications for the dollar.

Carr believes the dollar’s recent descent may reflect investors’ increased risk tolerance rather than collapsing faith in the U.S. system. When fear reached its peak in October 2008, investors sought safety in U.S. Treasury instruments and the U.S. dollar. If fear returns, those two investment vehicles could be once again viewed as safe havens.

What does the dollar’s outlook mean for investors? Pursuing radical strategies today are likely to yield sub-par investment results over time.

“We continue to believe deflationary forces may prevail for the immediate future but inflation has a higher probability in perhaps four to five years,” Carr said. Predicting when that inevitable transition will occur is impossible, and CornerCap recommends diversified investment portfolios that balance the risk/reward across many uncertainties, including deflation, inflation, or a normal recovery.

Source: CornerCap Investment Counsel

Good news for American motorists: Despite doomsday prediction from energy-industry-funded interest groups, U.S. consumers actually will see a net reduction of $13 billion in 2020 and $46 billion in 2030 in their gasoline expenditures ($100 and $326 in average net savings per household, respectively) if Congress moves ahead to impose a cap-and-trade system, according to a new report from the American Council for an Energy-Efficient Economy (ACEEE).

How is that possible? What about the sky-is-falling warnings from energy companies? A new ACEEE report explains that the lower gasoline expenditures for U.S. consumers will reflect a combination of two factors – a much lower cost per gallon of gasoline for the impact of cap and trade than is claimed by cap-and-trade critics – and major savings made possible through the federal government’s drive for higher vehicle miles per gallon (MPG) performance.

ACEEE Transportation Program Director Therese Langer said: “You can’t talk about gas price implications of cap and trade without also factoring in the impact of higher MPG standards. The petroleum industry and its allies are sounding the alarm about skyrocketing gasoline prices in the wake of the passage of a strong climate bill. We could indeed see high gas prices again soon due to unrelated market circumstances. But policies to save energy and reduce emissions are not going to be the cause. In fact, they’re our best protection against that very scenario. The bottom line is that big increases in car and light truck fuel economy standards and new greenhouse gas emissions standards recently proposed jointly by the Department of Transportation and the Environmental Protection Agency will save consumers billions of dollars in fuel expenditures while reducing emissions.”

As the new ACEEE report notes, the petroleum industry and its allies are claiming that greenhouse gas reduction policies will hurt consumers by causing transportation fuel prices to soar. This assertion is incorrect on two counts:

– First, the increase in the cost of a gallon of gasoline due to the carbon cap-and-trade program established in the climate bill will in fact be modest. The U.S. Environmental Protection Agency (EPA) projects that, under the House bill H.R.2454, the cost of a carbon allowance will be $16 per ton CO2 in 2020 and $26 per ton CO2 in 2030. Given that it takes 110 gallons of gasoline to generate a ton of CO2, consumers might expect to pay an additional $0.15 per gallon in 2020 and $0.24 per gallon in 2030 due to the cap-and-trade program. These increases are dwarfed by run-ups in the price of gasoline in recent years and contrast with the American Petroleum Institute’s warnings of over $5-per-gallon gasoline.

– Second, while an increase of $0.15 to $0.24 per gallon could represent a material amount of money for a household over a year of driving, implementation of a climate bill will coincide with the phase-in of a dramatic and money-saving rise in the fuel economy of U.S. vehicles. The net effect of the tighter fuel economy (CAFE) standards for vehicles just proposed by the Department of Transportation and the cap-and-trade program in the climate bill will be lower average household transportation costs in 2020 and 2030 than we would experience under a business-as-usual scenario.

ACEEE Policy Director Suzanne Watson noted: “This is another example of the importance of complementing a cap-and-trade program with strong energy efficiency measures. It keeps the cost of greenhouse gas reductions down and can in fact lead to sizeable net savings, as our analysis shows to be the case for vehicles.”

The ACEEE report takes into account the following factors: fuel savings due to more efficient vehicles; lower world oil price due to reduced demand; increased driving due to lower fuel cost per mile; higher vehicle purchase costs due to advanced efficiency technologies; and higher price per gallon due to cap-and-trade.

Assumptions for the ACEEE analysis are drawn from recent Department of Transportation and Environmental Protection Agency documents.

The report also notes that, to the extent that policies, technological advances, and market forces yield a sizeable population of electric-drive vehicles, a cap-and-trade program for greenhouse gases will prove essential to further reductions in transportation sector emissions. Other efficiency measures for the transportation sector, notably heavy truck fuel economy increases and policies to reduce the need for motor vehicle travel, can provide emissions reductions and fuel savings well beyond those discussed in this analysis.

ACEEE’s white paper on net savings from climate policies for light-duty vehicles is available on the Web for free download at http://aceee.org/energy/national/index.htm.

Source: American Council for an Energy-Efficient Economy (ACEEE), Washington, D.C.

The amount of gross revenue generated in October 2009 through the play of slot machines at nine casinos rose 31.97% over the previous year, according to figures released by the Pennsylvania Gaming Control Board.

In October 2009, the nine operating casinos generated $177,111,933 in gross revenue compared to $134,203,554.37 in October 2008 when seven casinos were in operation. The growth in revenue resulted in tax collections of $97,411,563 this past month, $23,599,608 more in taxes returned to Commonwealth citizens than those of last October. Pennsylvania’s tax rate is 55% of gross revenue.

In a measurement of just the seven casinos in operation this October that were also in operation last year, revenue was up 6.23%.

The average daily number of operating slot machines in operation in Pennsylvania was 16,833 in October 2008 and 24,712 in October 2009.

Gaming Control Board Chair Greg Fajt says that while tax revenue is certainly assisting Pennsylvanians statewide in obtaining a property tax reduction averaging nearly $200 and saving the horse racing industry, slot machine-generated revenue is also reaching into the local communities that host or are neighbors to casinos.

“In the first three years of legalized gaming, $221,124,306 has already been distributed to local governments and counties from the play of slot machines at facilities that operate in or near their jurisdiction,” Fajt says. “This is new money coming into these communities to fund a myriad of projects that improve safety and transportation, create or retain jobs, and enhance the quality of life.”

Fajt explains that this revenue comes from a split of the 4% tax on slot machine gross revenue from the casino in the government’s jurisdiction. The local host government receives 2% or $10 million, whichever is greater, with a cap based on a previous annual budget. The host county receives a straight 2% of gross revenue which it makes available for selected projects. In some cases, revenue sharing arrangements have been established between governments.

Here are some of the uses of the local government assessment money:

Economic Development:
– $1.2 million to Monongahela Industrial Development Association to construct the Alta Vista Business Park Building in Washington County
– $150,000 to the Washington Industrial Development Corporation for implementation of a supplier-driven target marketing initiative in Washington County
– $1.3 million to the Washington County Authority for Southpointe II infrastructure improvements in Washington County
– $1.2 million to the Washington County Council on Economic Development for the expansion of the Starpointe Business Park in Washington County
– $200,000 for expansion of the Washington Hospital in Washington County
– $1.05 million to the Monroe County Industrial Development Authority for the East Stroudsburg University Research and Technology Park in Monroe County
– $1.05 million to the Monroe County Industrial Development Authority for the Pocono Mountains Regional Airport in Monroe County
– $1.05 million to the Monroe County Industrial Development Authority for the Northampton County Community College’s Monroe County campus in Monroe County
– $631,958 to Packerton Business Park in Carbon County
– $420,000 to Carbondale City Redevelopment Authority for enhancements to Main and Church Streets in Lackawanna County
– $1 million to City of Wilkes-Barre for the Northampton and Main Street mixed-use facility
– $750,000 to Dallas Borough for Misericordia University’s College of Health Sciences in Luzerne County
– $500,000 to the City of Wilkes-Barre to assist in the expansion of the successful Innovation Center small business incubator
– $254,402 to Hazle Township for the Barletta Asphalt Plant Project in Luzerne County
– $1 million to Jenkins Township for the Interstate Distribution Center in Luzerne County
– $655,000 to Kingston Township for The Lands at Hillside Farms in Luzerne County
– $1.4 million to Kingston Borough for the Third Avenue / Insignia Medical Campus in Luzerne County
– $412,315 to Freeland Borough for streetscape improvements in Luzerne County

Road Improvements:
– $800,000 to the Washington County RDA for the Canton 2010 (Jessop Exit) Revitalization, Phase I, an existing highway interchange on Interstate 70 in Washington County
– $125,000 to West Pike Run Township for replacement of the Whitehall Road Bridge in Washington County
– $298,606 to Coolbaugh Township for a new traffic light in Monroe County
– $208,950 to Mount Pocono Borough for improvements to Route 611 in Monroe County
– $192,000 to Lower Southampton to pay for upgrades to the intersection of Street Road and Central Avenue in Bucks County
– $478,977 to Middletown to help pay for upgrades to the intersection of Route 213 and Business Route 1 in Bucks County
– $525,000 to Derry Township for roadway improvements on S.R. 743 in Dauphin County
– $1,101,035 to East Hanover Township to repair Jonestown Road over Manada Creek Bridge in Dauphin County
– $230,844 to East Hanover Township for improvements to Early’s Mill Road/Laudermilch Road Intersection in Dauphin County
– $564,844 to East Hanover Township for Firehouse Road/Fox Run Road Paving Project in Dauphin County
– $140,000 to South Hanover Township for Shetland Drive reconstruction in Dauphin County

Health and Safety Projects:
– $40,000 to Chartiers Township for improvements to the Chartiers Creek Sewage Facilities in Washington County
– $50,000 to Dunlevy Borough for improvements to the Dunlevy Sanitary Sewer in Washington County
– $275,000 to the Cecil Township Municipal Authority for the Elm Drive and McConnell Road Sewer Line Extension in Washington County
– $100,000 to Deemston Borough to renovate and restore the historic Deemston Borough Building in Washington County
– $50,000 to the Avella Area Community Association for renovation of the historic Lincoln National Bank building Washington County
– A second grant totaling $20,000 to the Cecil Township Municipal Authority for the Lawrence Sewage Facilities Plan in Washington County
– $200,000 to the Monongahela Valley Hospital for radiology digital imaging services in Washington County
– $30,000 to West Bethlehem Township, Marianna Borough and Marianna-West Bethlehem Joint Sewer Authority for the West Bethlehem Stream Bank restoration in Washington County
– $428,881 to the Washington County RDA for (documented) administrative costs in Washington County
– $799,195 to Wyoming Borough for public safety projects in Luzerne County
– $185,000 to Lower Southampton to pay for equipment that clears intersections during emergency response calls in Bucks County
– $360,292 to Swoyersville Borough for a new police station and two cruisers in Luzerne County
– $27,500 to Forty Fort Borough for a police cruiser in Luzerne County
– $185,273 to Laflin Borough for police department projects in Luzerne County
– $1 million to City of Wilkes-Barre for a wireless surveillance camera system
– $100,000 to Barrett Township for purchasing an ambulance in Monroe County
– $512,861 to Monroe County Industrial Development Authority for the Women’s Resources of Monroe County
– $1 million to the Wayne County 911/Emergency Operations Center in Wayne County
– $240,000 to Lower Southampton and Feasterville fire companies for new generators in Bucks County
– $72,782 to Tri-Hampton Rescue Squad for global positioning communications equipment in Bucks County
– $20,000 to Bristol Township for a firearms buyback program in Bucks County
– $140,000 to Bristol Township to make the township building handicap accessible in Bucks County
– $75,000 to East Hanover Township for a Communications System in Dauphin County
– $80,000 to East Hanover Township for an IT Filing Data Management System in Dauphin County
– $122,500 to East Hanover Township for Municipal Equipment in Dauphin County
– $250,000 to Middle Paxton Township for a new fire facility in Dauphin County
– $150,000 to Rush Township for a new municipal building and emergency management center in Dauphin County

Community Improvements and Tourism:
– $166,000 to the Avella Volunteer Fire Department for improvements to the Avella Regional Arena in Washington County
– $100,000 to the Burgettstown Area Community Development Corporation for restoration of the Burgettstown Historic Train Station in Washington County
– $287,500 to Canonsburg Borough for renovation of their regional pool in Washington County
– $17,175 to the Claysville Area Preservation and Revitalization Initiative to make the Claysville Community Center handicap accessible in Washington County
– $250,000 to the Mid Mon Valley Cultural Trust for renovations to the historic Coyle Theater in Washington County
– $379,000 to the Meadowcroft Rockshelter and Museum of Rural Life for a Visitor Center in Washington County
– $192,000 to the PONY Baseball and Softball organization for renovation and restoration of the original Lew Hayes PONY Field in Washington County
– $300,000 to the Washington Community Arts and Cultural Center for building expansion in Washington County
– $31,965 to the Washington County Transportation Authority for expansion of Washington County Transportation services in Washington County
– $29,450 to Erie Downtown Partnership to offset expenses of Downtown d’LIGHTS in Erie County
– $420,000 to Monroe County Industrial Development Authority for Sherman Theatre in Monroe County
– $167,000 to Tunkhannock & Tobyhanna Township to restore a stone building at the Austin T. Blakeslee Natural Area Regional Park in Monroe County
– $38,998 to Mount Pocono Borough for Veterans Park in Monroe County
– $181,965 to Mount Pocono Borough for Deerfield Oak Street Park in Monroe County
– $160,487 to Monroe County Industrial Development Authority for Monroe County Family Health Center in Monroe County
– $292,050 to Delaware Water Gap Borough for a municipal well in Monroe County
– $619,500 to Monroe County Industrial Development Authority for a general occupancy facility in Monroe County
– $250,000 to Hawley Borough for downtown enhancement projects in Wayne County
– $293,475 to Jim Thorpe Borough for replacing a retaining wall in Carbon County
– $300,000 to Hulmeville for a new borough hall in Bucks County
– $150,000 to Bensalem to help clean up graffiti in Bucks County
– $425,636 to Dingman Township for the township’s first public park in Pike County
– $250,000 to Lackawanna County for Boundless Playground to provide
recreational access to persons with disabilities in Lackawanna County
– $525,717 to White Haven Borough for Engine House project in Luzerne County
– $137,000 to Upper Mount Bethel Township for recreational fields at Community Park in Northampton County
– $41,531 to Newport Township for Coal Street Park in Luzerne County
– $304,000 to Covington Township for Moffat Park in Lackawanna County
– $337,000 to Walnutport Borough for the Walnutport Borough Park, Phase II in Northampton County
– $334,100 to Palmyra Township for a Pocono Mountains Vacation Bureau Visitors Center and walking trail in Pike County
– $200,000 to Clarks Green Borough for playground equipment and reconstructing the soccer field in Lackawanna County
– $1 million to the Pike County Industrial and Commercial Development Authority for Pike County Public Library Headquarters and Dorothy E. Warner Community Center in Pike County
– $1,479,216 to East Hanover Township for various infrastructure and planning projects in Dauphin County
– $400,500 to West Hanover Township for a new fire engine pumper unit in Dauphin County
– $329,000 to West Hanover Township for land acquisition for a new fire station in Dauphin County
– $188,000 to the Grantville Area Food Pantry for building addition and new van in Dauphin County
– $407,976 to South Hanover Township for land acquisition for municipal building in Dauphin County
– $57,900 to Northern Dauphin County YMCA to complete construction on Senior Wellness Center in Dauphin County
– $160,000 to Hummelstown Borough for Shope’s Field and park improvement project in Dauphin County

The Gaming Control Board provides weekly updates of casino revenue on its web site, www.pgcb.state.pa.us. In addition, videos and information on the operation of the PGCB, problem gambling efforts and assistance, future meeting schedules and past meeting transcripts, and a link to request a speaker are among the many items available to the public on the web site.

Source: Pennsylvania Gaming Control Board

81% of Senior Business People Rate Transport as More Critical to Their Decision to Invest now Than Five Years Ago.

Invest Thames Gateway, the lead international inward investment agency for the Thames Gateway region, launches a new report, ‘Smart connections: The essential role of transport for borderless business’.

Written by Professor Austin Smyth, Head of the Department of Transport Studies at the Westminster University, the findings are supported by the opinions of over 300 senior international business people, surveyed by leading pollsters YouGov.

In the face of a global recession which has called into question the future of many transport infrastructure projects; this new research reveals that the quality of transport infrastructure in a city or region is front of mind in four out of five business location decision-makers. The ‘face to face’ elements of business afforded by transport networks remain critical to almost half of senior business people despite the increase in virtual contact brought about by 21st century IT systems.

This report reveals that it will be the ability to deliver integrated transport systems (covering road, rail, air, ports) which will distinguish the regional economic successes of the future through the ability to provide fast, easy access to world markets, skilled workers and to bring businesses together quicker.

Key findings

- 81% of senior business people rate transport as more important than ever for business on national, local and international  levels
- 63% said that transport was essential to attracting an increasingly mobile and demanding workforce;
- 52% of respondents cited the globalisation of business as increasing the demand for efficient and integrated transport networks
- 46% responded that virtual business is no substitute for real time face-to-face contact and that holistic transport systems are essential to bringing businesses together
- Half of respondents cited committed government support to transport infrastructure as essential to their future investment decisions.

Gareth John, Managing Director of Invest Thames Gateway commented: “The report provides vital insight into the crucial role transport plays and will continue to play in the future economic success of locations. The Thames Gateway, which benefits from unrivalled connections to London and mainland Europe, gives the region the potential to become one of the UK’s most exciting and well connected business investment location.”

Other findings

As cities, regions and countries fight for investment spend, transport infrastructure is the “x-factor” in investor’s decisions. Almost half of decision-makers said 21st century integrated transport infrastructure will make or break the economic prospects of a location.

The essential benefits for business of being able to access integrated transport networks were cited as: access to potential customers (56%); access to labour pools (41%); ability to drive efficient operations (39%); providing a high quality of life for employees (28%).

When considering the make-up of transport networks, respondents defined the ideal investment location of the future as having the following attributes:

- Access to integrated transport networks (combination of road, rail, ports and air) (62%)
- Proximity to international markets (34%)
- Access to international airports (31%)
- Proximity to a major city (31%)
- Access to sophisticated road and rail networks (29%)
- Commitment to sustainability (17%)

The report features a strategic review of integrated transport infrastructure in the Thames Gateway, UK. The area benefits from regional, intraregional and international transport links and serves as a gateway between London and Europe. Its transport network links major markets within and beyond the UK by high speed rail, road networks, ports and air. It is also fully supported by committed government funding.

The major infrastructure improvements that have been invested in the Thames Gateway region have already enhanced the region’s overall competitiveness and will continue to contribute to the economic growth of this investment location.

Highlights include:

- The High Speed Domestic Rail link
- Crossrail
- The Eurostar at Ebbsfleet
- The new deep water port at Shell Haven
- Extensions to the East London line
- New developments at London City Airport

Professor Austin Smyth, Head of the Department of Transport Studies at Westminster University said: “Transport infrastructure represents the future for both business locations and business. Sophisticated and effective transport networks translate as accessibility and connectivity, making borderless business possible. In the future, access to integrated transport networks and proximity to international markets, will, undoubtedly, be among the most influential factors for investors.”

The report also features in-depth case studies of Paris, Dubai, Abu Dhabi and The Ranstad (Netherlands) and reveals how these cities and regions have invested in their transport infrastructure to attract business and investment in the long term.

- The Ranstad, The Netherlands – Improving international (train) connectivity is part of the City’s economic strategy to maintain and extend its attractiveness for (international) companies
- Paris, France – 35 billion Euro investment in the Grand Paris transport network announced earlier this year by the President aims to reinforce the position of Paris as a world city, respond to local needs and bring wider national benefits – Dubai, United Arab Emirates – Dubai’s high level of density has lead to a large investment programme, worth over AED70 billion, to implement the whole transport network
- Abu Dhabi, United Arab Emirates -Improved transport infrastructure projects are expected to contribute to the Emirate’s  economic development and ease traffic congestion

Source: Invest Thames Gateway

Media optimism on economy again runs counter to consumer sentiment; Stock market gains, GDP growth lead positive economic coverage

The Dow Jones Economic Sentiment Indicator (ESI) rose to 36.9 in October, up from 34.1 in September as a result of positive media coverage of ongoing stock market gains and news that the gross domestic product rose at an annual rate of 3.5 percent in the third quarter. The gain in the ESI runs counter to unexpectedly large drops in two leading consumer-based economic indicators.

The Dow Jones Economic Sentiment Indicator aims to predict the health of the U.S. economy by analyzing the coverage of 15 major daily newspapers in the U.S. The two leading consumer-based economic indicators, the University of Michigan Consumer Sentiment Index and the Conference Board’s Consumer Confidence Index, use national surveys to measure consumer attitudes about the state of the U.S. economy. The Consumer Confidence Index dropped dramatically to 47.7 in October, its second consecutive monthly decline. The Consumer Sentiment Index fell to 69.4 in October after having posted an unexpectedly strong rise in September.

According to Dow Jones Newswires ‘Money Talks’ columnist Alen Mattich, the divergence in the indicators can be explained by the difference in how the media and consumers view economic news. “Consumers are likely to focus on the continuing bad employment news because of the fear that they could be next,” Mattich said. “On the other hand, there was a drop off in coverage of the recession as the media focus on broader positive economic trends such as the stock market’s rebound, improved corporate earnings and the growth in the GDP outweighed coverage of mixed or negative news during the month.”

The ESI has risen 10 out of 12 months since its low of 22.2 in November 2008, data that confirm the consensus among economists that the U.S. recession ended sometime early in the summer.

“The ESI’s strong rise since its lows in November 2008 shows the U.S. economy is clearly getting better, a message confirmed by the big jump in third-quarter GDP,” Mattich said. “But the ESI’s relatively low level suggests the recovery remains vulnerable to reversal. In the past two cycles, an economic upturn wasn’t firmly established until the ESI reached the upper 30s or lower 40s.”

Mattich points out that a gain in the ESI historically indicates improvement in the labor market, but significant improvement may still be months away. “In past economic recoveries, increases in the ESI have lead improvements in non-farm payroll by two to five months and improvement in the unemployment rate by five to seven months,” Mattich said.

The ESI represents one of the most comprehensive and far-reaching examinations of media coverage as an economic indicator. The ESI’s back-testing to 1990 shows that the ESI clearly highlighted the risk that the U.S. economy was sliding into recession in 2001 and 2008 and suggests the indicator can help predict economic turning points as much as seven months in advance of other indicators.

Unlike some other indicators where 50 is a clear break-point between recession and recovery, the ESI needs to be read with reference to longer trends. Based on the ESI’s performance since 1990, previous recoveries have been marked by substantial month-to-month gains, with a jump of three points seeming to be a sign of significant improvement. A drop below 50 marks the point at which there is a clear risk of a slowdown.

The Dow Jones Economic Sentiment Indicator is calculated using a proprietary algorithm through Dow Jones Insight, a media tracking and analysis tool.

More information about the Economic Sentiment Indicator and its development is available at http://solutions.dowjones.com/esi .

Dow Jones Insight uses innovative text mining and analytic technologies to help organizations keep informed about relevant issues, news, conversations and trends emerging in mainstream, Web and social media. Dow Jones Insight’s global content collection includes more than 25,000 news and information sources as well as blogs, message boards, and posts from YouTube and Twitter.

Source: Dow Jones & Company

Prices are rising all around us, yet agricultural commodities have for the most part been left behind and remain at historically depressed levels. Fundamentals for agriculture are improving on a daily basis. A worldwide shortage of farmers combined with food inventories falling to record lows is setting up the perfect storm for an explosion in agriculture prices. There is a huge opportunity today to invest at the ground-floor into what will likely be one of the biggest boom industries of the next several decades.

Wheat is currently down 60% from its all time nominal high set in 2008 and 80% from its inflation adjusted high set in the 1970s. Corn is currently down 50% from its all time nominal high set in 2008 and 75% from its inflation adjusted high set in the 1970s. Wheat and corn have only bounced 13% and 26% from their 52-week lows this year respectively. While sugar has faired much better and is now at a 28-year nominal high, sugar is still down 70% from its inflation adjusted high set in the 1970s.

With crude oil back above $80 per barrel, we will soon see a renewed interest in alternative energy. This will create increased demand for wheat, corn and sugar which are used to make ethanol and other biofuels. A massive rise in agriculture prices is just around the corner.

We receive countless emails on a weekly basis asking about if Real Estate is now a good investment and if rents will likely climb during hyperinflation. While rents will increase nominally during hyperinflation, they will plummet compared to agriculture. No longer will Americans eat more than most other countries, yet spend less of their income on food. When Americans are forced to pay more for food, it will take away from what they can spend on rent.

The average American consumer today spends approximately 30% of their income on housing and only 10% of their income on food. We expect these numbers to reverse in the years ahead as the U.S. dollar loses its purchasing power. In Germany during hyperinflation, rents fell from 30% to less than 1% of the average households’ expenditures while food rose from 30% to a high of over 91%.

The U.S. is currently the world’s largest exporter of wheat and corn and the fifth largest exporter of sugar. When American consumers purchase food at their local supermarket, they are competing against consumers from all around the globe. As the Federal Reserve prints trillions of dollars out of thin air and causes our currency to lose its purchasing power, Americans won’t be able to afford to eat as much and farmers will be forced to increase their exports to countries with stronger currencies.

When it comes to an apartment in the U.S. that a landlord is trying to rent to a tenant, there is no global market to drive rent prices up. The rents landlords receive depend on the strength of the local U.S. economy. With unemployment continuing to surge and a huge glut of homes on the market, it is only a matter of time before real rent prices decline and become a smaller monthly expense than food.

While Americans will eat less in the years ahead, Chinese citizens will be able to afford to eat more. Despite China’s rapidly growing economy, there are major food shortages in China. Chinese agriculture companies have a chance of becoming the market’s biggest gainers of the next decade. Our last China agriculture stock suggestion gained over 83% after our profile in a little more than six months. We will be announcing our new China agriculture stock suggestion on Tuesday.”

Source: National Inflation Association – http://inflation.us/

Treasury Secretary Tim Geithner and the Director of Treasury’s Community Development Financial Institutions Fund, Donna J. Gambrell, announced billions of dollars in awards to spur private sector investment in communities facing economic challenges. The announcement was made at Greater West Town Community Development Project, a job training center that has benefited from funding under the New Markets Tax Credits (NMTC) Program, to highlight the impact of this program. NCB Capital Impact was awarded $90 million in NMTC allocations for disbursement to community health care centers, charter schools, and other innovative development projects in low-income communities across the nation.

“The New Markets Tax Credit Program is promoting private-sector investment in our nation’s communities and is helping to stimulate economic growth, create jobs and bringing new opportunities to Americans most in need,” commented Donna Gambrell. “This innovative federal program is helping to finance numerous businesses and real estate projects across the country — projects that may not have been financed if not for New Markets Tax Credits.”

Since July 2005, NCB Capital Impact has completed 29 NMTC transactions totaling $229.4 million and has used these funds to support health, housing and education facilities that are anchor institutions in low-income areas. These transactions have shown a demonstrated impact on rural and urban communities nationwide, leveraging over $500 million in capital resulting in: creation/retention of 3,542 permanent jobs and 2,157 temporary jobs; 1,015,000 square feet of community facilities space; 3,750 school seats for children; and 198,000 annual patient visits for medically underserved.

“These New Markets Tax Credit transactions will help NCB Capital Impact and its partners create about 1,000 new jobs, 3,000 new school seats for low-income children, 100 units of workforce housing, and provide 25,000 working families with quality, affordable health care nationwide,” said Terry Simonette, president and CEO of NCB Capital Impact. “This allocation is a critical financing tool to build economic security in communities that need it most.”

This award increases NCB Capital Impact’s total NMTC allocations to $409 million. As of September 2009, the organization had disbursed $229.4 million of $319 million in allocations. They are expected to complete disbursement of all previous allocations by the first quarter of next year.

“The NMTC financing we received from NCB Capital Impact was critical for our new 54th Street campus,” said Judy Burton, CEO of The Alliance for College-Ready Public Schools. “It will have a significant impact in helping to redevelop the area and provide a high quality education to hundreds of low-income children in South Los Angeles.”

The NMTC Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer’s investment must in turn be used by the CDE to make qualified investments in low-income communities. The 32 organizations to receive NMTC allocations under ARRA were selected through a competitive application and rigorous review process.

In 2008 alone, NCB Capital Impact disbursed a record $208.1 million for education, health care and affordable homeownership programs that benefit low- and middle-income communities nationwide. Despite the economic downturn that forced the largest lending institutions in the country to reduce access to capital for those most in need in 2008, NCB Capital Impact has continued investing in traditionally higher-risk communities thanks to the non-profit organization’s innovative approach to community lending that includes provisions for technical assistance, policy outreach and public/private partnerships that are necessary for building sustainable communities.

Source: NCB Capital Impact