“After two foreclosures and two bankruptcies, Hermes Maldonado is as surprised as anyone that he’s getting a third shot at homeownership. The 61-year-old machine operator at a plastics factory bought a $170,000 house in Moreno Valley this summer that boasts laminate-wood floors and squeaky clean appliances. He got the four-bedroom, two-story house despite a pockmarked credit history.”

Who would loan to this gentleman? Anyone, anyone?
His reentry into homeownership three years later came courtesy of the Federal Housing Administration. The agency has become a major source of cash for so-called rebound buyers ”” a burgeoning crop of homeowners with past defaults who otherwise would be shut out of the market.

“After everything that happened, thank God I was able to buy another house,” Maldonado said in Spanish. “Now, it’s good because the interest rates are low and there are lots of homes.”

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As the high-stakes wrangling over the fiscal cliff gets underway, we though it might be the proper moment to remind everybody just how the United States managed to become the world’s biggest debtor.

So, here’s how….

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There were nearly 50 million Americans living in poverty in 2011, under an alternative measure released by the Census Bureau Wednesday.

That’s 16.1% of the nation, higher than the official poverty rate of 15%. The official rate, released in September, showed 46.6 million people living in poverty.

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The incoming Archbishop of Canterbury risks provoking a row with ministers by claiming that planned City reforms will fail those in Britain’s poorest communities.

Just three days after being named as the new leader of the Church of England, the Right Reverend Justin Welby will demand that legislation is redrafted to shame banks into lending more money to poorer regions.

The House of Lords amendment is his first political act since he was named as the next leader of 80 million Anglicans last Friday. He is currently the Bishop of Durham and takes up the new post next month.

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Police and protesters clashed in Spain on Wednesday as millions of workers went on strike across Europe to protest spending cuts they say have made the economic crisis worse.

Hundreds of flights were cancelled, car factories and ports were at a standstill and trains barely ran in Spain and Portugal where unions held their first ever coordinated general strike.

Riot police arrested at least two protesters in Madrid and hit others with batons, witnesses said, and in Rome students pelted police with rocks in a protest over money-saving plans for the school system.

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Tim Keller, pastor of New York’s Redeemer Presbyterian Church and New York Times bestselling author of The Reason for God, has taught and counseled students, young professionals, and senior leaders on the subject of work and calling for more than twenty years. Now he puts his insights into a book for readers everywhere, giving biblical perspectives on such pressing questions as:

Ӣ What is the purpose of work?
ӬӬӢ How can I find meaning and serve customers in a cutthroat, bottom-line-oriented workplace?ӬӬ
Ӣ How can I use my skills in a vocation that has meaning and purpose?
ӬӬӢ Can I stay true to my values and still advance in my field?
ӬӬӢ How do I make the difficult choices that must be made in the course of a successful career?ӬӬ

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The U.S. will become the world’s top producer of oil within five years, a net exporter of the fuel around 2030 and nearly self-sufficient in energy by 2035, according to a new report from the International Energy Agency.

It’s a bold set of predictions for a nation that currently imports some 20% of its energy needs.

Recently, however, an “energy renaissance” in the U.S. has caused a boost in oil, shale gas and bio-energy production due to new technologies such as hydraulic fracturing, or fracking. Fuel efficiency has improved in the transportation sector. The clean energy industry has seen an influx of solar and wind efforts.

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[Not many]…days ago, the citizens of this great land decided who would have the privilege of leading our Nation for the next four years. It is a time-honored process reflecting both the wisdom and the power of the American people. Today, America honors the men and women whose profound acts of citizenship ”” service in the armed forces of the United States of America ”” have safeguarded our country for 237 years and guaranteed our rights as Americans to choose our leaders.

Twenty-two million living Americans today have distinguished themselves by their service in uniform. Their devotion and sacrifice have been the bedrock of our sovereignty as a Nation, our values as a people, our security as a democracy, and our offer of hope to those in other lands, who dream our dreams of “Life, Liberty, and the pursuit of Happiness.”

For the past 11 years, the men and women of our armed forces have stood watch in Iraq, in Afghanistan, Europe, Korea, and more than 150 other countries around the globe. More than 1.5 million Veterans have served in the combat theaters of Iraq, Afghanistan, and the Horn of Africa. Since 9/11, nearly 3 million Veterans have departed the military, having fulfilled their duty to the Nation, and become eligible for the benefits and services we offer here at the Department of Veterans Affairs (VA).

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German Finance Minister Wolfgang Schaeuble has asked a panel of advisers to look into reform proposals for France, concerned that weakness in the euro zone’s second largest economy could come back to haunt Germany and the broader currency bloc.

Two officials, speaking on condition of anonymity, told Reuters this week that Schaeuble asked the council of economic advisers to the German government, known as the “wise men”, to consider drafting a report on what France should do.

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The woman at the center of the extramarital affair that led to the resignation of the head of the Central Intelligence Agency is a highly accomplished, extremely competitive person who got to know the high-profile general, in part, by going running with him in Afghanistan.

Paula Broadwell met Gen. David Petraeus six years ago, when she introduced herself after he gave a speech at Harvard’s Kennedy School, where Ms. Broadwell was working on a master’s degree.

She now lives in Charlotte, N.C. with her radiologist husband and two children, according to an online biography page associated with her book about Petraeus, “All In: The Education of General David Petraeus,” which was taken offline shortly after her name was linked to the scandal.

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Talks to agree the EU’s 2013 budget have collapsed, after negotiators from the EU and member states were unable to agree on extra funding for 2012.

The EU Commission and European Parliament had asked for a budget rise of 6.8% in 2013.

But most governments wanted to limit the rise to just 2.8%.

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If anyone in Washington could have weathered a sex scandal, Gen. David Petraeus would seem like that person.

Yet the retired general who inspired admiration bordering on reverence from so many in the capital was abruptly out Friday as Central Intelligence Agency director, just one day after President Barack Obama learned of Petraeus’s extramarital relationship.

Intelligence community insiders say Petraeus was felled by an increasing sensitivity in the Obama administration to extramarital dalliances, stemming from recent cases in which officials at various levels have seen their careers scuttled for similar personal misconduct.

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Mr. Petraeus issued a statement acknowledging the affair after President Obama accepted his resignation and it was announced by the C.I.A. The disclosure ended a triumphant re-election week for the president with an unfolding scandal.

Government officials said that the F.B.I. began an investigation into a “potential criminal matter” several months ago that was not focused on Mr. Petraeus. In the course of their inquiry into whether a computer used by Mr. Petraeus had been compromised, agents discovered evidence of the relationship as well as other security concerns. About two weeks ago, F.B.I. agents met with Mr. Petraeus to discuss the investigation.

Administration and Congressional officials identified the woman as Paula Broadwell, the co-author of a biography of Mr. Petraeus. Her book, “All In: The Education of General David Petraeus,” was published this year. Ms. Broadwell could not be reached for comment.

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CIA Director David H. Petraeus resigned Friday and admitted to having an extramarital affair, bringing a shocking end to his brief tenure at the spy agency and highly decorated national security career.

The affair came to light as part of an FBI investigation into a potential security breach involving Petraeus’s e-mails, according to federal law enforcement officials and a former senior intelligence official. The investigation uncovered e-mails describing an affair between Petraeus and Paula Broadwell, a former military officer and co-author of a glowing biography of Petraeus, according to two law enforcement officials who were briefed on the investigation.

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Should lawmakers not reach agreement prior to the end of the year, the US budget deficit for 2013 would be cut almost in half, to $560 billion.

Which doesn’t sound like a bad thing. After all, the US is staggering under a monumental pile of debt and could potentially begin to face the kinds of difficulties that have plunged several euro-zone countries into crisis. It is a viewpoint shared by the ratings agencies — a year ago, Standard & Poor’s withdrew America’s top rating, justifying the measure by pointing to the unending battle over the debt ceiling. The agency noted that “the political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.”

From afar, it is difficult to argue; the ongoing battle between Democrats and Republicans in the face of a horrendously imbalanced budget looks catastrophically absurd. As their country heads toward the edge of the abyss, lawmakers preferred to debate whether or not French fries and pizza should be considered vegetables.

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Among the politicians who have come to know him over the past few months, there was celebration yesterday, and from all benches. He was invited to join the banking commission with cross-party support, as he was a capitalist who was tough on the City. “In a dark sea of thick and wholly unworldly bishops, he sparks a little,” says one MP. “Talking to the bishops in Parliament seldom leaves you with the impression that they believe in God. I think this one actually might.” The only concern was that he might be too religious for the job.

No one would question the strength of Rowan Williams’s faith. But when he joined fights, they tended to be secular ones: criticising the Government over its cuts, or giving his blessing to environmentalist campaigns. The logic of this is undeniable: that to keep its relevance in the modern world, the Church needs to insert itself into popular debates. But decline continued, each Sunday brings a new closure and the British Social Attitudes survey found that 64 per cent of people never set foot in any place of worship. Dr Williams has had to keep the Church alive in one of the least religious countries on earth.

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Bishop Welby, 56, the 105th archbishop of Canterbury, is said to have been chosen over three other leading contenders: the archbishop of York, John Sentamu; the bishop of Norwich, Graham Jones; and the bishop of London, Richard Chartres. Bishop Welby is regarded as an evangelical conservative in opposing same-sex marriage, but he is also said to take a more liberal position on the ordination of female bishops, favoring the elevation of women to senior church positions.

He told reporters that, at a forthcoming ballot, he would vote in favor of the ordination of women bishops. On the issue of same-sex marriage, he said: “We must have no truck with any form of homophobia.”

“I am always averse to the language of exclusion,” he said, suggesting some readiness to listen to the arguments of those who disagree with him. But he made clear that he supported a statement earlier this by Anglican bishops opposing government plans to legalize same-sex marriage.

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France’s main sales-tax rate will increase in January 2014 to 20 percent from 19.6 percent, while the second band on home renovations and restaurants will rise to 10 percent from 7 percent currently. A third rate that applies to food and energy will be cut to 5 percent from 5.5 percent in an effort to support the spending power of France’s poorest households, French Prime Minister Jean-Marc Ayrault said today.

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…historically, voters have given a second term to incumbent presidents who preside over even modest economic growth during an election year.

That pattern appears to have held for Obama. If the economy is not exactly roaring ahead, it improved steadily over the course of the year.

“It was never going to be a landslide,” said John Sides, a political science professor at George Washington University. “But it was always his race to lose.”

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Preliminary results of an exit poll conducted for The Associated Press show that the presidential election hinges once again on the economy.

The survey of voters as they leave polling places Tuesday shows 6 in 10 voters say the economy is the top issue facing the nation, with unemployment and rising prices hitting voters hard.

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Heavenly Father we ask that you will have mercy on America today and bless us in spite of ourselves. We ask that you will give wisdom to all who go to the polls to cast their votes. Help us as we make difficult decisions on a variety of issues and as we seek to elect men and women who will hunger for righteousness and seek the common good to positions of authority in our towns and cities, in our states and in our nation. We pray against any voter fraud or any corruption of proper voter access and ask that justice be done in each and every election, whatever the locale. We also pray for peace and grace with one another as the results are received and digested, through Jesus Christ our Lord, who with you and the Holy Spirit lives and reigns in glory everlasting, Amen–KSH.

Talking about the struggles faced by the working poor has become a social taboo. We would prefer to pretend that the problem wasn’t there ”“ but sadly it is.

It is a very grim reality that needs addressing urgently by all of us.

We will not make this country stronger by impoverishing others. Whether that is by offering unpaid internships and work experience to young people ”“ or by freezing Minimum Wage levels for the poorest ”“ the end result is that our society, our communities and our nation become sicker and less cohesive as a result….

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Finance chiefs of the world’s 20 leading economies are ringing alarm bells over the U.S. fiscal cliff and Europe’s debt woes at a meeting in Mexico this weekend as they look to push back deficit reduction targets to help boost growth.

Unless a fractious U.S. Congress can reach a deal, about $600 billion in government spending cuts and higher taxes are set to kick in on January 1, threatening to push the American economy back into recession and hit world growth.

“The Americans themselves acknowledge that this is a problem,” a G20 official said on condition of anonymity. “The U.S. administration says it doesn’t want to fall off the fiscal cliff, but right now it can’t tell us how exactly it will address it because that issue is on ice ahead of the election.”

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As debt-burdened European governments struggle to overcome the disparities in their still-imperfect union, old demons of regional separatism have surged anew in recent months, raising another unwelcome challenge to the continent’s traditional nation-states.

Separatist movements have dramatically reinforced their positions here in Belgium’s prosperous Flanders region, where the independence-minded New Flemish Alliance captured Antwerp’s 16th-century City Hall on Oct. 14 and, under its populist leader Bart De Wever, is heading into national elections in 2014 with new wind in its sails.

“There is an outcry in Flanders for change,” declared Danny Pieters, vice president of the Belgian Senate and a senior Flemish alliance leader.

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On the third day after Hurricane Sandy soaked Hoboken in several feet of water, leaving the city one of the most crippled in the region, those with the least found themselves suspended in the storm’s cold, dark aftermath. Late this week, Hoboken started to hum with generators and a taco truck.

The projects where [Grace] Rodriguez and her daughter, Jayleen Avalos, lived were still at the bottom of the world. The 25 or so buildings operated by the Hoboken Housing Authority were clustered together on 17 acres at the city’s southern edge. They were hemmed in by gentrification on one side ”” $600,000 lofts with same-day shirt service dry cleaners ”” and a steel fence in the back. Two feet of floodwater created a moat around the buildings. The National Guard brought water and MREs. The Red Cross brought bologna-and-cheese sandwiches.

But the one commodity residents were starved for was information, and the absence of it deepened their sense of isolation. The city government used social media to update citizens. Grace Rodriguez would have appreciated a bullhorn.

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French leader François Hollande is uncomfortably close to a collapse in credibility. His poll rating has sunk to 36pc. The speed of decline has been shocking.
The latest broadside comes from ex-German chancellor Gerhard Schröder, supposedly his ally on the Left.
“The election promises of the French president are going to shatter on the walls of economic reality,” he said in Paris.

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U.S. nonfarm payrolls increased by a seasonally adjusted 171,000 jobs last month, the Labor Department said Friday. The politically important unemployment rate, obtained by a separate survey of U.S. households, rose one-tenth of a percentage point to 7.9%.

Economists surveyed by Dow Jones Newswires had forecast a gain of 125,000 in payrolls and a 7.9% jobless rate.

Friday’s report offers the last broad snapshot of the economy before the Nov. 6 election. The campaign was overshadowed much of this week by Sandy, though severe disruption and damage caused by the storm isn’t reflected in the October employment figures because they are based on surveys conducted earlier in the month.

Read it all. Blog readers know I prefer U-6, which I consider the most representative rate–it went down from 14.7 to 14.6 month over month. You can find a list of all measures, U-1 through U-6, there and a longer term U-6 chart there–KSH.

Update: Dylan Matthews has 6 charts on the employment report here; note especially the one on wages.

To those who were surprised that the European Union received the Nobel Peace Prize, I say: “Think twice.” This was not only a deserved award for Europe’s contribution to bringing peace and stabilizing democracies in the recent past. The Nobel Committee was also sending a clear warning to contemporary leaders. I could almost hear them saying: “On this difficult odyssey, don’t abandon ship. In today’s world, the EU is too valuable to squander.”

It was an indirect but powerful rebuttal to the dangerous nationalist and populist rhetoric some politicians have adopted when describing the recent financial crisis.

This message couldn’t have come at a better time.

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Since the Fresh & Easy grocery chain was founded five years ago, it has opened 150 stores in California and positioned itself as a hip, socially responsible company.

A cross between Whole Foods and Trader Joe’s, the company brags that its house brands have no artificial colors or trans fats, that two-thirds of its produce is grown locally and that its main distribution center is powered by a $13 million solar installation.

But in one crucial respect, Fresh & Easy is just like the vast majority of large American retailers: most employees work part-time, with its stores changing many of their workers’ schedules week to week.

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