News Alerts, Aug. 31, 2013, Afternoon Edition, 3 New Articles, Real Estate +, Don’t Miss Them

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  1. To taper or not to taper – Bankrate, Inc.

    By Mark Hamrick · Monday, August 26, 2013. Posted: 2 pm ET

    Amid volatility in financial markets tied to an anticipated scaling down of the Federal Reserve’s economic stimulus, top economists are weighing in on when the central bank will make the change.

    At issue is how and when to wind down the pace of $85 billion in monthly asset purchases. A survey of members of the National Association of Business Economics finds that 39 percent expect the Fed to begin to wind down the asset-purchase program in the fourth quarter of this year. Some 27 percent expect the deceleration to start in the first quarter of 2014. Just 10 percent see it happening in the current quarter.

    Rates have risen anyway…

    Read the source article … al-reserve/to-taper-or-not-to-taper/

  2. Chetrit Group Hotels | King Grove Hotel

    …Scheetz and the Chetrits had been battling behind the scenes over the operation of the Hotel Chelsea — still the home of rent-stabilized tenants — which the Chetrit Group acquired for $79 million in 2011. The company’s plans to convert the property into a King & Grove hotel met with numerous public relations snafus and construction hurdles, including a stop work order the Department of Buildings issued in May after a construction incident knocked out the building’s heat, hot water and cooking gas.

    Scheetz informed the tenants that his firm acquired 100 percent of the equity after buying out the site from the Chetrit Group and David Bistricer’s Clipper Equity.

    “We now own 100 percent of the hotel and we intend to make a number of significant enhancements to the way the property is managed and the manner in which the restoration is conducted,” said Scheetz in the memo to tenants.

    Read the source article … chetrits-king-grove-break-up-hotel-partn ership/

  3. Bruegel | Blogs review: Takeaways from Jackson Hole Bruegel | Blogs review: Takeaways from Jackson Hole

    By Jérémie Cohen-Setton on 28th August 2013

    What’s at stake: Although Jackson Hole was relatively calmer this year in the absence of market moving speeches, it featured a number of provocative research papers. Robert Hall suggested that the tradition of regarding high unemployment as a disequilibrium may rest on a misunderstanding. …

    Financial crises, higher discount factor and higher equilibrium unemployment

    Robert Hall writes that the tradition of regarding high unemployment as a disequilibrium that gradually rectifies itself by price-wage adjustment may rest on a misunderstanding of the mechanism of high unemployment.

    … The job value is the present discounted value of the future difference between a worker’s productivity and the worker’s pay. Even if that difference is unaffected by a negative shock, if an increase in discount rates accompanies the shock, the job value will decline and unemployment will rise accordingly.

    Read the source article … rticle/1143-blogs-review-takeaways-from- jackson-hole/