BUSINESS NEWS MARCH 4TH, 2016
FLINT HOMES SELLING FOR $14,000
With the water crisis hanging over Flint, Michigan like a lead filled shadow, the housing market in the now infamous city is taking a massive hit. In 2008, the bursting of the housing bubble affected the Michigan city particularly, causing its real estate market to drop nearly 75% of its value. According to Rob Moen, an associate banker at Berkshire Hathaway HomeServices, says that homes in Flint are selling for about 50% of what they were in 2005. While most real estate markets have rebounded since the 2008 crash, Flint’s remains submerged, forcing residents to stay due to an inability to sell their homes.
BERNIE SANDERS’ TAX PLAN
Vermont Senator Bernie Sanders’ political platform has been largely centered around a revolution against corporations and the billionaire class. To do that, the Democratic presidential candidate has suggested a tax plan that would entail the largest ever peacetime tax increases. Under Bernie Sanders, the “super rich” would pay 54.2% in income tax, 64.2% capital gains tax, and nearly $3.1 million in additional taxes. The TPC estimates that, if Sanders’ plan were put into effect and all the revenue went to reducing the budget deficit, publicly held national debt would be wiped out within 20 years. Furthermore, in order to pay for his Medicare for All plan, the Vermont Senator would impose an across the board 2.2% tax increase.
DONALD TRUMP ON TRUMP UNIVERSITY
The hot button issue of Trump University has been brought up yet again in a litigation case against the school founded by the real estate mogul from New York. A report from the prosecution lawyer said that nearly 25% of students who attended Trump University asked for a refund. Trump dismissed this figure, saying that “if people think they can get a refund, they’re going to ask”. He went on to say that the reviews, even from students who demanded their money back, were overwhelmingly positive. When asked if he would apply the same logic to his hotels, Trump said no, citing that hotels were a completely different business. In the January 21st deposition, Trump also admitted to not being directly involved in the hiring of Trump University professors, contradicting claims that he personally vetted every single one of them.
FOUR DAY WIN STREAK PROPS WALL STREET’S CONFIDENCE
A sluggish economy seems to be on everyone’s mind these days, and investors on Wall Street are no different. However, concerns over a lack of growth were alleviated on Friday, as Wall Street closed on a high after four days of an upward trend. Leading the charge was employment, which was the main factor in allaying investors’ fears. Data coming in on Friday showed that nonfarm payrolls increased by 242,000 in the last month. John Brady, managing director at R.J. O’Brien & Associates in Chicago, said that these numbers will boost the confidence of everyone on Wall Street, and should stop the Fed from immediately rushing into rate hikes. Brady went on to add that the strength of the economy gives the Fed time to assess the situation rather than immediately interfering with it.