One out of five families owes more on credit cards, medical bills, student loans and other unsecured debt than they have in savings, according to a new University of Michigan report. And the number of families surveyed at the end of 2011 that have no savings at all increased to 23.4%, compared with 18.5% in 2009.

“The people who were down and out, without much money, in the recession have ended up staying there or even worse,” says Frank Stafford, professor of economics at University of Michigan Institute for Social Research and co-author of the report.

And the mortgage crisis is not over.

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In the American mind, renting has long symbolized striving””striving, that is, well short of achieving. But as we climb our way out of the Great Recession, it seems something has changed. Americans are getting over the idea of owning the American dream; increasingly, they’re OK with renting it. Homeownership is on the decline, and home rentership is on the rise. But the trend isn’t limited to the housing market. Across the board””for goods ranging from cars to books to clothes””Americans are increasingly acclimating to the idea of giving up the stability of being an owner for the flexibility of being a renter. This may sound like a decline in living standards. But the new realities of our increasingly mobile economy make it more likely that this transition from an Ownership Society to what might be called a Rentership Society, far from being a drag, will unleash a wave of economic efficiency

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The economy lost steam in the first quarter, as onetime engines of growth sputtered and robust consumer spending was unable to propel the recovery on its own.

Gross domestic product, the broadest measure of all goods and services produced in the economy, grew at an annualized rate of 2.2% in the first quarter, down from 3% at the end of 2011, the Commerce Department said Friday. The deceleration reflected sharp cutbacks in government spending and weaker business investment and came despite an unusually warm winter, which many economists said likely provided a mild economic boost.

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More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame.

That figure, provided to Reuters by tracking firm CoreLogic, represents about one out of 10 home loans made during that period.

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The UK is back in recession after a surprise 0.2% contraction in the economy in the first quarter of the year, official figures revealed today.

The decline in gross domestic product (GDP) was driven by the biggest fall in construction output for three years, while the manufacturing sector failed to return to growth, the Office for National Statistics (ONS) said.

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If Spain’s crisis deepens Europe’s recession, it could tip the entire world economy into a stubborn slump. The ramifications would be enormous, including: reduced odds of Barack Obama’s reelection, assuming a weaker U.S. recovery; less political cohesion and more social unrest in Europe (even now, the European Union’s unemployment rate is 10.2 percent); and growing pressures in many countries for economic nationalism and protectionism.

Spain is suffering a hangover from what economist Desmond Lachman of the American Enterprise Institute calls “the mother of all housing booms.”

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Some of the same spoilers that interrupted the recovery in 2010 and 2011 have emerged again, raising fears that the winter’s economic strength might dissipate in the spring.

In recent weeks, European bond yields have started climbing. In the United States and elsewhere, high oil prices have sapped spending power. American employers remain skittish about hiring new workers, and new claims for unemployment insurance have risen. And stocks have declined.

There is a “light recovery blowing in a spring wind” with “dark clouds on the horizon,” Christine Lagarde, managing director of the International Monetary Fund, said Thursday….

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Truro Anglican Church and the Episcopal Diocese of Virginia announced today a settlement that concludes five years of litigation that arose after Truro Anglican and other parishes left the Episcopal Church in 2006 to become part of what is now the Anglican Church in North America.

The settlement follows a January ruling in which the Circuit Court of Fairfax County held that all real and personal property held by the parishes at the time they left the denomination belongs to the Diocese.

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…talk about landmark status for the perpetually unfinished Episcopal church is starting to percolate again, as developers ready plans for a new apartment building on leased cathedral property along 113th Street in Morningside Heights.

Real-estate firm Equity Residential hopes to start construction on the 15-story apartment building next year. The new structure’s footprint would be some 70 feet north of the cathedral itself, replacing large metal sheds and parking spaces in the area now.

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…if anyone is eager for encouraging signs, it’s worth pointing out that the very broadest measure of unemployment actually improved this month. This is the U-6 metric, which tallies up all unemployed persons, plus people marginally attached to the labor force, plus people employed part-time for economic reasons. Jim Pethokoukis likes to call this “perhaps the truest measure of the labor market’s health.” And U-6 dropped from 14.9 percent in February to 14.5 percent in March. Anyone trying to dig around for optimistic signs should start there.

Still, it’s a weak report all around. And we’ll know in a few months if March was actually as tepid as everyone thinks. In theory, the real significance of this report should be whether it convinces Ben Bernanke and the Federal Reserve that a little more monetary stimulus is needed. But how likely is that? The unemployment rate is roughly in line with what the Federal Open Market Committee has been expecting. And if the Fed’s content with the current state of affairs, then more help may not be on the way after all.

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St. Margaret’s Anglican Church, one of seven Anglican congregations that are parties to the church property case brought by The Episcopal Church and the Episcopal Diocese of Virginia, celebrates taking a stand for the Gospel truth amidst settling its property involved in the case.

The settlement calls for St. Margaret’s Anglican to turn over to the Diocese its real property, including the parcel the parish bought, improved and maintained for fifty years. St. Margaret’s Anglican will vacate the property by April 30, and will turn over to the Diocese a portion of the liquid assets on hand when the lawsuit commenced in early 2007. St. Margaret’s will retain a portion of those liquid assets and a valuable hand bell collection that was a gift to St. Margaret’s from a parishioner.
St. Margaret’s was one of many Virginia Episcopal congregations who voted overwhelmingly to disassociate from The Episcopal Church and the Diocese in order to remain faithful to the historic doctrine of the worldwide Anglican Communion.

“This settlement is good news to us,” stated Alan Clark, Senior Warden of St. Margaret’s Anglican. “We are ready to move on in our mission of proclaiming Jesus Christ. Together, putting the legal dispute behind us, we celebrate who we are as Anglicans and followers of Christ. We trust in the path God has laid for St. Margaret’s Anglican, and look forward to where He plans to use our congregation to spread His transforming love.”

The Rt. Rev. David Bena, Interim Rector of St. Margaret’s Anglican, added, “Throughout these past several years of costly court battles, I have been humbled to bear witness to St. Margaret’s faith-filled stand for the Gospel truth at whatever expense.”

“We appreciate the good faith of Diocesan officials in negotiating the settlement, and we’re thrilled to be part of growing entities such as the regional Anglican Diocese of the Mid-Atlantic (a member diocese of the Anglican Church in North America) and the Convocation of Anglicans in North America. The death and resurrection of our Lord this Holy Week remind us that God is ultimately in charge. Our parishioners are ready to fully focus our energies on preaching, teaching, healing and making disciples in Jesus’ name. We may have lost the buildings, but we’ve kept the faith!” concluded Bishop Bena.

…a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.

“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.

“Last year was an anomaly, and not in a good way,” he said.

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Federal Reserve policymakers have backed away from the need for another round of monetary stimulus as the U.S. economy gradually improves.

Minutes of the central bank’s meeting published on Tuesday showed only two of the policy-setting Federal Open Market Committee’s 10 voting members saw the case for additional monetary stimulus.

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The decision to deconstruct Christ Church Cathedral is supported by Canterbury church leaders.

An open letter of support from 70 churches and Christian organisations was presented to the Anglican Bishop of Christchurch, Victoria Matthews, at St Peter’s Church in Upper Riccarton yesterday. The letter affirmed that the Anglican Church had the right to decide the fate of its cathedral.

“God’s real Church is the people, and people matter more to God than any building,” the letter reads. “We pray for the bishop and other leaders as they face the challenges this brings.”

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In better economic times, workers in this dusty inland town [of Azusa, California] east of Los Angeles built motor homes in the low-slung complex at 975 West First Street.

More recently, it was an assembly site for floats in the Tournament of Roses Parade. Today it is the home of two Hispanic Protestant churches, which rent space for Sunday services in two buildings set on 1.3 acres. So when the site’s owners decided to sell the property, they called Raphael Realty.

David and Mary Raphael are real estate agents who deal only in church buildings. It’s a rare specialty. They could think of only two other real estate agencies in the country that do what they do, one in Texas and one in Northern California.

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An urbanization drive perhaps unparalleled in human history has turned China into a continent-sized construction site. Some of the new buildings have won international acclaim, such as Beijing’s “Bird’s Nest” stadium built for the 2008 Olympics. But far too many are eyesores, complain architects and online critics.

When the architecture website www.archcy.com asked readers to vote for China’s top 10 ugliest buildings, Li Hu, a Beijing-based partner at U.S. Steven Holl Architects, said, “Choosing 10 is very hard, choosing a million is perfectly possible.

“Development is too quick. Architects don’t have time to reflect,” says Li, who blames the ugly edifices in part on interference by government officials, a lack of imagination by architects and corruption.

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With the highest unemployment rate in the European Union at 23 per cent and 50 per cent of young people out of work, Spain this week veered back to recession for the second time in two years.

The strike comes amid mounting international concern that Spain might become the next casualty of the eurozone debt crisis after Greece, Ireland and Portugal, which were all forced to accept financial rescue packages.

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The congregation of St. David’s Anglican Church in Peters will hand over its property, its name and its debt of nearly $1 million to the Episcopal Diocese of Pittsburgh and start over in a former Catholic church in Canonsburg.

The move is the latest in a property dispute between the Episcopal Diocese of Pittsburgh and the rival Anglican Diocese of Pittsburgh. The diocese split in 2008, with a majority leaving the Episcopal Church for the theologically conservative Anglican Church in North America.

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Attorneys for Christ Church Savannah have filed documents asking the U.S. Supreme Court to intervene in litigation they contend deprived them of the Johnson Square church property.

The 45-page document filed Thursday afternoon asks the high court to determine the law on local church property, which it contends has been inconsistently treated in five different jurisdictions considering the issue.

The supreme court may accept or reject the request for review.

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Conventional wisdom has advanced competing theories: Wall Street types took too many risks, encouraged by lax government regulation; or pro-homeownership policies eroded mortgage-lending standards and created the housing bubble.

Actually, both theories are correct ”” and neither is….
[The real foundation was laid with Paul Volcker’s]… decisive defeat of double-digit inflation in the early 1980s.

All the good news (low inflation, high employment, rising stock and real estate prices) drove economic growth. Between 1982 and 2007, there were only two mild recessions. When prosperity was jeopardized ”” by the 1997 Asian financial crisis, the tech crash in 2000, the 9/11 attacks ”” the Federal Reserve seemed to defuse the threats. The economy seemed less risky. Economists announced the Great Moderation of business cycles.

Booms become busts because justifiable confidence becomes foolish optimism. So it was. Believing the world less risky, people took more risks. Investment banks and households increased their debt. Lending standards eroded, because borrowers’ repayment prospects were thought to have improved. Regulators relaxed oversight, because markets seemed more stable and self-correcting. On the fringes, ethical standards frayed; criminality increased. The rest, as they say, is history.

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We don’t yet know where the stay-home generation will make their church homes. When the economy improves they may hit the road. But I wonder if something has changed for good during the Great Recession. Diminished economic opportunities might have taught a generation of young adults that they cannot depend on money to make them happy. Even in a better economy your job probably won’t last long; the company may not be able to afford you, or you may soon be looking for something else to improve your meager earnings. Organizational loyalty, up and down the corporate ladder, has collapsed.

It would be easy to follow the lead of Todd and Victoria Buchholz and blame Facebook and laziness for younger Americans’ unwillingness to drop everything and move to North Dakota. But I would hope other factors, chiefly love of neighbor and family, are at work. The grass is not always greener in the Peace Garden State. Your sins will follow you even to the Canadian border. It’s challenging but rewarding to stay home and learn to love the family, church, and neighbors who have known you since youth.

Americans may take the restless pursuit of prosperity at any cost for granted, but that doesn’t make it any more acceptable in God’s eyes. the national narrative that celebrates the free-ranging individual fosters sinful discontent….

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Pinched by the global recession and tough-love budget demands of the European Union, the Italian government is looking for extra revenue, and has its eyes set on commercial properties owned by the Roman Catholic Church.
On Feb. 15, the government of Prime Minister Mario Monti announced it wants to revise rules on the tax-exempt status of church-owned commercial property. Although the exemption also applies to other not-for-profit entities, such as trade unions, political parties and religious groups, the Catholic church is its largest beneficiary.

“Such a move would have been unimaginable six months ago,” said Francesco Perfetti, a history professor at LUISS University in Rome. “After all, no matter whether you are a believer or not, the church is an integral part of Italy’s culture.”

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…[Italian Prime Minister Mario] Monti’s joint letter with twelve EU states last week calling for an end to self-defeating contraction marks a key moment in this crisis. If Francois Hollande is elected French president in May, the shift in Europe’s balance of power will be complete. Germany will lose its stifling grip on EU policy machinery. The EMU bloc will start to tilt towards reflation at long last.

Whether it can come soon enough to avert a social explosion across Europe’s arc of depression remains to be seen. Nor can such stimulus overcome the fundamental flaws of EMU since Germany is at an entirely place in the deform structure, with unemployment at 20-year lows of 5.5pc.

What is needed to save the South must endanger the North. Germany would overheat, pushing its inflation to 4pc or 5pc until Bild Zeitung erupts in Teutonic fury. It is impossible to reconcile the conflicting imperatives.

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One of the key questions of 2012 is which party can make the stronger case to voters who, in Obama’s words, “feel the American dream slipping away.” Democrats are heartened by more favorable reports on employment, rising approval ratings, and their apparent victory in Congress on extending the payroll tax cut and jobless benefits. But, as the Democratic pollster Stanley Greenberg notes, the Party’s base now consists mainly of young people, African-Americans, Latinos, single women, and affluent suburbanites. In 2008, Obama struggled to connect with voters he referred to as “lunch-pail folks”””the ones clinging to their guns and their religion. He lost them by eighteen points. As the conservative political analyst Michael Barone points out, even though Obama won a higher percentage of the total vote than any Democratic President except Andrew Jackson, Franklin D. Roosevelt, and Lyndon Johnson, he did it with “a top-and-bottom coalition”””holders of graduate degrees and high-school dropouts.

With the Republicans preoccupied by their race to the right, Obama has the luxury of honing a message aimed at the middle. The slogan he tried out in the State of the Union, “an America built to last,” sounded like an ad for a mattress company, or a car company””a little like Clint Eastwood’s “halftime in America” Super Bowl commercial for Chrysler. The Republican onetime mayor of Carmel, California, huskily declared that “all that matters now is what’s ahead. How do we come from behind? How do we come together?”

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Since 2009, the window maker has shifted from a 40-hour work week to 32 at many of its plants, cut executive pay and 401(k) contributions, but has not laid off any of its 4,300 workers, Ms. Marvin says. Even so, Ms. Marvin isn’t holding out too much hope for 2012.

“We’re not talking about a housing recovery,” she says. “We’re talking about a small pickup.”

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St. Philip’s Episcopal Church, an architecturally important and beloved part of downtown Germanton for generations, may be torn apart, moved and rebuilt to house a congregation in Carrboro that needs a place to worship.

Germanton Baptist Church, which sits next to the Episcopal church, is buying the land from the Episcopal Diocese of North Carolina, said the Rev. Jeff Stephens of the Baptist church.

“Our church is experiencing significant growth,” said Stephens, who came to the church in January 2011. “And for the Episcopal diocese to approach us about purchasing the property is an exciting opportunity because we are in desperate need of some room to grow.”

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After months of painstaking talks, government authorities and five of the nation’s biggest banks have agreed to a $26 billion settlement that could provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble, state and federal officials said in Washington on Thursday.

It is part of a broad national settlement aimed at halting the housing market’s downward slide and holding the banks accountable for foreclosure abuses.

Under the plan, federal officials said, about $5 billion would be cash payments to states and federal authorities, $17 billion would be earmarked for homeowner relief, roughly $3 billion would go for refinancing and a final $1 billion would be paid to the Federal Housing Administration.

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“You could sell your home, owe nothing more on your mortgage and get $30,000,” JPMorgan Chase & Co. (JPM) said in the Aug. 17 letter obtained by Bloomberg News.

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Transfiguration was built in the early 1900s and sits just north of a Cleveland Clinic parking garage. The Gothic Revival church was home to one of several congregations that broke off from the Episcopal Diocese of Ohio.

The breakaway congregation recently moved to another location after a judge later decided the property must stay with the diocese. The building badly needs repairs, and a diocesan official, the Rev. Brad Purdom, said the diocese cannot restore every building.

“It breaks our hearts,” Purdom said. “But at the end of the day, you have to make some choices about how you’re going to spend the limited resources that you do have.”

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Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages….

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