Single-family home prices rose in September for an sixth straight month in a further sign that the housing market is on the mend, a closely watched survey showed on Tuesday.

The 3.6% increase from a year earlier is the biggest percentage gain in more than two years in the third quarter, according to the closely followed S&P/Case-Shiller index:

This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. The rebound is spurred by a combination of record low mortgage rates, an improving jobs market and a drop in foreclosures to a five-year low, reducing the supply of distressed homes available. There is also a tighter supply of both new and previously owned homes on the market.

The improvement in housing market fundamentals have helped to lift the pace of both home sales and home building.

Dean Baker, the co-director of the Center for Economic and Policy Research who was one of the earliest economists to warn about the housing bubble and the trouble that lay ahead, said this recovery in the housing market should lead to some sustained housing price increases in the coming years.

"I've been an optimist as of late," he said. "Some think it'll get back to bubble prices and that's crazy. But we'll probably do better than inflation for the next few years, and people who have been underwater on their mortgage will get out from that, and build some equity."

"With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

Video via CBS Channel 13.

UPDATE: Ho no! Poor a glass of milk for the dessert foods that are no more, because it appears that Twinkies, Ho Hos, Ding Dongs, and the rest of Hostess Brands Inc.’s cupboard full of snack foods could really be leaving supermarket shelves for good. Mediation efforts between the company and the Bakery, Confectionary, Tobacco, and Grain Millers Union—which were supposed to save the company—failed Tuesday, meaning Hostess will return to bankruptcy court Wednesday to make its case of liquidating and selling off its assets. Roughly 18,000 workers at the Texas-based company will lose their jobs.

Twinkies may yet have an infinite shelf life. Hostess Brands Inc. and one of its largest unions have agreed to go into mediation, so the company will stay in business for the time being. Hostess filed for bankruptcy last Friday, claiming a union strike ruined its operations and announcing plans to lay off all 18,500 of its employees. But a bankruptcy judge on the case said the dueling parties have to go through mediation before Hostess Inc. can sell off its assets. It won’t be a cake walk, but at least you can cancel your $1,000 Ho Ho bid on eBay.

NYT:

Judge Robert D. Drain of the Federal Bankruptcy Court for the Southern District of New York pushed hard for the two sides to try one last round of talks. The judge expressed worry that neither side had exhausted all efforts to avoid liquidation. He especially urged the bakery union to seek mediation, suggesting that it might face significant legal claims if Hostess is forced to liquidate.

“I’m giving the union, as well as the debtor and their lenders, a chance to work out their issues in private,” Judge Drain said. “If they don’t take it, it’s not that the issues won’t be worked out. They will, but it will be done in public and in an expensive way.”

While publicly Hostess blames the union for their financial woes, it seems the corporate executives were engaged in some "fuzzy math" behind the scenes.

CNN:

Even as it played the numbers game, Hostess had to face chaos in the corner office at the worst possible time. Driscoll, the CEO, departed suddenly and without explanation in March. It may have been that the Teamsters no longer felt it could trust him. In early February, Hostess had asked the bankruptcy judge to approve a sweet new employment deal for Driscoll. Its terms guaranteed him a base annual salary of $1.5 million, plus cash incentives and “long-term incentive” compensation of up to $2 million. If Hostess liquidated or Driscoll were fired without cause, he’d still get severance pay of $1.95 million as long as he honored a noncompete agreement.

When the Teamsters saw the court motion, Ken Hall, the union’s secretary-treasurer and No. 2 man, was irate. So much, he thought, for what he described as Driscoll’s “happy talk” about “shared sacrifice.”
...

Some unsecured creditors had informed the court that last summer — as the company was crumbling — four top Hostess executives received raises of up to 80%. (Driscoll had also received a pay raise back then.) The Teamsters saw this as more management shenanigans. “Looting” is how Hall described it in TV interviews.

In the end, Hostess could still go through bankruptcy, and shutter all the plants. However, the only real question at this point is will they actually get away with blaming the employees for their financial shenanigans while the executives sail away in their golden parachutes?

But whatever happens, just remember that this is all the fault of the E-vil unions and their minions, got it?

Our Dreams Don’t Fit in Their Ballot Boxes!

No to austerity! Yes to reclaiming our communities!

Occupy Portland and Portland Action Lab invite all people to participate in a national call to action to say No to Austerity and Yes to building our collective power. On November 2nd and 3rd (N3) we will mobilize and march, voting with our feet by taking direct action to interrupt the normal course of business. Our power is in our neighborhoods, building alternatives, and taking to the streets! Business and our governments hoard wealth, privatize our communities, and burden us with enormous debt – This is AUSTERITY and we say Enough is Enough!

We call on all participants in the Occupy movement, rank-and-file union members, students, our elders and people-at-large to organize creatively and return to our public spaces with this message on the weekend before the election. Our communities will make our own decisions and control our own resources, no matter who is elected. We are not alone; austerity is a consequence of a failed economic system and people around the world are rising up. We act in solidarity and take inspiration from the peoples of Greece, South Africa, Quebec, Chile, and beyond who are fighting austerity and the destruction of their communities.

Solidarity against Austerity!

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Finders Weepers: Early Bain Disputes Cast New Light on Its Business

by Jesse Eisinger ProPublica, Sept. 11, 2012

It was one of the "quickest big hits in Wall Street history," as the Wall Street Journal put it at the time.

In 1996, an investment group including Bain Capital, the firm then run by Republican presidential candidate Mitt Romney, sold the consumer credit information business Experian to a British retailer, making a $500 million profit. Bain and the other investors who reaped that windfall had closed the acquisition a mere seven weeks earlier, stunning the investing world.

Another party was stunned by the deal, but for a different reason. James McCall Springer believed that he had brought the idea to buy Experian to Bain in the first place.

Springer sued to get what he contended was his rightful finder's fee, eventually settling. And he wasn't the only one. At least three other parties had similar legal disputes with Bain during the early 1990s, when Romney led the company, raising questions of how rough-and-tumble the company could be. The suits also shed light on how Bain actually operated, complicating one of the main narratives Bain, the Romney campaign, and many commentators have used to describe the private equity firm.

The Romney campaign declined to respond to a request for comment on the lawsuits. Bain did not respond to a request for comment. And, of course, disputes about finder's fees are not uncommon; large sums are at stake for little work, a situation ripe for claims of aggrandized roles.

Most accounts of Bain characterize the firm as full of hard-working young men who sought to find troubled companies, invest in them and turn them around. Romney's presidential campaign website says that "under his leadership, Bain Capital helped to launch or rebuild over one hundred companies." Romney campaigns have embraced his reputation as a turnaround artist, as he has run on his private equity record and his overhaul of the 2002 Salt Lake City Olympics. He even titled his 2004 book "Turnaround," a memoir and account of the 2002 Salt Lake City Olympics.

But as the disputes illuminate, the reality of Bain's business in the early years is more complicated.

Often, Bain wasn't finding companies on its own. Finders and middlemen were more common in the early days of private equity than they are now. Smaller firms would seek out acquisition targets and bring them to the big buyout firms.

More significantly, Romney's firm wasn't always looking for startups or troubled companies that it could turn around.

Private equity companies conduct a variety of transactions other than buying startups with growth potential or troubled firms ripe for a turnaround. Some seek out family-run operations under the theory that those typically have a lot of fat to cut. Some like "roll-ups," buying up a bunch of small operations in one industry and combining them into a powerhouse with economies of scale. Firms buy divisions of large corporations that are trying to streamline their operations. Some acquisitions fit more than one of these descriptions. The constant is debt, and plenty of it. Private equity firms use such borrowed money to maximize their gains.

The Romney campaign says Bain did various types of deals. And it celebrates that Bain helped launch or rebuild some American corporate stalwarts, like Staples, Bright Horizons and Sports Authority.

Yet in addition, under Romney's tenure, Bain often sought out solid businesses that didn't need to be turned around. The reason: Such companies could operate under the burden of the enormous debt that Bain would layer on them.

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Nearly 1,000 people marched through Charlotte's business district on Sunday, two days before the start of the Democratic National Convention in that city in protest of the influence of corporate money in politics. The crowd railed against the bailouts that big businesses received in the aftermath of the 2008 financial crisis and carried signs that read, "Banks got bailed out. We got sold out." The marchers planned to pass by Bank of America's corporate headquarters and a Wells Fargo office. Many of the activists said they were there to protest other concerns like the government's inaction on climate change and the human rights abuses. At least two people were arrested, Charlotte police said.

One protester, 23-year-old Anna Marie Wright, was arrested for violating a law by wearing a mask, according to police. Wright was arrested at 2:25 p.m. At the time of the arrest, she had a knife, police said.

Chris Stevens, 32, was also arrested for disorderly conduct, assault on a government official and resisting arrest in the 200 block of South College street. Stevens was drunk, CMPD police chief Rodney Monroe told reporter Dianne Gallagher, and was not part of the March on Wall Street South.

Another protester was transported by Medic to a local hospital, according to The Charlotte Observer. Authorities have not said why the protester was taken to the hospital.

The protest march was peaceful, but plenty of police on hand, you know, "just in case."

Ouch! This one has to sting, because it's all so true.

Mitt Romney's reinvention convention is starting with the theme "We Built It." Mitt Romney will try to sell himself to the American people as a "Mr. Fix It" who knows how to turn a business around. Of course, once you examine his record, it's clear Mitt Romney knows less about turning businesses around and more about running them into the ground.

Mitt Romney made millions of dollars bankrupting companies, shuttering factories, offshoring jobs and putting profits before people. The theme of the Republican National Convention paints a rosy picture, but the theme of Mitt Romney's time as a corporate raider is less flattering. Mitt Romney didn't build that -- he destroyed it.

"Mitt Romney: You Didn't Built That — You Destroyed It"

Las Vegas Sands Corp. Chairman and Chief Executive Officer Sheldon Aldelson. Photo: Jerome Favre/Bloomberg

Inside the Investigation of Leading Republican Money Man Sheldon Adelson

by Matt Isaacs, Lowell Bergman and Stephen Engelberg

This story was co-published with PBS' "Frontline."

A decade ago gambling magnate and leading Republican donor Sheldon Adelson looked at a desolate spit of land in Macau and imagined a glittering strip of casinos, hotels and malls.

Where competitors saw obstacles, including Macau's hostility to outsiders and historic links to Chinese organized crime, Adelson envisaged a chance to make billions.

Adelson pushed his chips to the center of the table, keeping his nerve even as his company teetered on the brink of bankruptcy in late 2008.

The Macau bet paid off, propelling Adelson into the ranks of the mega-rich and underwriting his role as the largest Republican donor in the 2012 campaign, providing tens of millions of dollars to Newt Gingrich, Mitt Romney and other GOP causes.

Now, some of the methods Adelson used in Macau to save his company and help build a personal fortune estimated at $25 billion have come under expanding scrutiny by federal and Nevada investigators, according to people familiar with both inquiries.

Internal email and company documents, disclosed here for the first time, show that Adelson instructed a top executive to pay about $700,000 in legal fees to Leonel Alves, a Macau legislator whose firm was serving as an outside counsel to Las Vegas Sands.

The company's general counsel and an outside law firm warned that the arrangement could violate the Foreign Corrupt Practices Act. It is unknown whether Adelson was aware of these warnings. The Foreign Corrupt Practices Act bars American companies from paying foreign officials to "affect or influence any act or decision" for business gain.

Federal investigators are looking at whether the payments violate the statute because of Alves' government and political roles in Macau, people familiar with the inquiry said. Investigators were also said to be separately examining whether the company made any other payments to officials. An email by Alves to a senior company official, disclosed by the Wall Street Journal, quotes him as saying "someone high ranking in Beijing" had offered to resolve two vexing issues 2014 a lawsuit by a Taiwanese businessman and Las Vegas Sands' request for permission to sell luxury apartments in Macau. Another email from Alves said the problems could be solved for a payment of $300 million. There is no evidence the offer was accepted. Both issues remain unresolved.

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David Koch is hosting a fundraiser for millionaire Mitt Romney at his Hamptons estate Sunday evening. You could have come over to Koch's house today to meet Mitt Romney, assuming you had a spare $50,000 lying around. How do the elite afford those $50,000 tickets? Tax rates for the super-elite, the top .01%, have fallen in half since Mitt Romney’s father ran for president; or to put it differently, after tax income for this group has doubled due to policy alone. And bear in mind that the US economy flourished just fine under those 60-70 tax rates.

Not only have taxes on people such as Mitt Romney plummeted since 1960, they've risen flor nearly every income group except for the poor and very poor. The Bush tax cuts were especially generous to the uberwealthy, which isn't really a surprise.

The Colbert ReportMon - Thurs 11:30pm / 10:30cBill Moyerswww.colbertnation.com

Colbert Report Full EpisodesPolitical Humor & Satire BlogVideo Archive

Bill Moyers on the Colbert Report Monday night hitting on Citizens United, and corporate influence in politics.

Moyers believes that capitalism is out of control and there can be no people's democracy as long as corporations are considered people.

He will also soon be returning to PBS.

[Photo: Vanity Fair]

Mitt Romney says that he's the man to fix our nation's ailing economy because of his extensive business skills. Well, he is a wealthy member of the one percent, however, he's not always such a successful businessman. Actually, one Kansas City company in that Romney purchased a majority share was bankrupt within a decade. Also, your tax dollars likely helped hand Romney a nice bail out.

Reuters:

In October 1993, Bain Capital, co-founded by Mitt Romney, became majority shareholder in a steel mill that had been operating since 1888.

It was a gamble. The old mill, renamed GS Technologies, needed expensive updating, and demand for its products was susceptible to cycles in the mining industry and commodities markets.

Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they'd been promised, and their pension benefits were cut by as much as $400 a month.

What's more, a federal government insurance agency had to pony up $44 million to bail out the company's underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees (Emphasis mine).

Lost jobs, no severance pay, no health insurance, drastically cut pensions...these are the business skills Romney is going to use to turn our economy around? These things sound horribly familiar. Just how did things work out for the people who worked for Mitt Romney's company?

Before the bankruptcy filing:

Veteran crane operator Ed Mossman says he was ordered to pick up a load of steel that was 50 percent above the recommended weight limit - a prospect that could have toppled the crane and sent Mossman plunging to his death. When he refused, he says, he was fired after putting in 29 years at the mill.

"The first 15 years, I had the best job in the United States, as far as I was concerned," Mossman said. "The last five years down there got to be pure hell."

And after the plant shutdown?

After nearly 30 years as a steelworker, Joe Soptic found a job as a school custodian. The $24,000 salary was roughly one-third of his former pay, and the health plan did not cover his wife, Ranae.

When Ranae started losing weight, "I tried to get her to the doctor and she wouldn't go," Soptic said. She ended up in the county hospital with pneumonia, where doctors discovered her advanced lung cancer. She died two weeks later.

Soptic was left with nearly $30,000 in medical bills. He drained a $12,000 savings account and the hospital wrote off the balance.

"I worked hard all my life and played by the rules, and they allowed this to happen," Soptic said.