The $1.3 Trillion Price Of Not Tweeting At Work

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On June 6, Larry Ellison–CEO of Oracle, one of the largest and most advanced computer technology corporations in the world–tweeted for the very first time. In doing so, he joined a club that remains surprisingly elite. Among CEOs of the world’s Fortune 500 companies, a mere 20 have Twitter accounts. Ellison, by the way, hasn’t tweeted since.

As social media spreads around the globe, one enclave has proven stubbornly resistant: the boardroom. Within the C-suite, perceptions remain that social media is at best a soft PR tool and at worst a time sink for already distracted employees. Without a push from the top, many of the biggest companies have been slow to take the social media plunge.

A new report from McKinsey Global Institute, however, makes the business case for social media a little easier to sell. According to an analysis of 4,200 companies by the business consulting giant, social technologies stand to unlock from $900 billion to $1.3 trillion in value. At the high end, that approaches Australia’s annual GDP. How’s that for a bottom line? Read more here.

via The $1.3 Trillion Price Of Not Tweeting At Work | Fast Company. By Ryan Holmes|August 30, 2012

FHFA Says Fannie, Freddie Will Not
Reduce Mortgage Balances

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Freddie Mac Lookup The Federal Housing Finance Agency announced Tuesday that after several months of mounting pressure from the Obama administrator and lawmakers that the mortgage giants it regulates, Fannie Mae and Freddie Mac, will not lower the mortgage principal of underwater home owners. Its decision quickly drew criticism.

The FHFA insists that through its own analysis it has concluded that reducing the mortgage principal of struggling home owners will not help prevent foreclosures nor save taxpayers money in bailout money to the GSEs.

The Obama administration says it disagrees with the FHFA’s decision. Treasury Secretary Tim Geithner was quick to argue that a reduction of struggling borrowers’ loan balances by the FHFA could save taxpayers up to $1 billion.

“I do not believe it is the best decision for the country,” Geithner wrote to the FHFA shortly after it announced its decision. “You have the power to help more struggling home owners and help heal the remaining damage from the housing crisis.”

The government had committed to helping to cover some of the costs to implementing such a program if the FHFA would permit mortgage principal reductions to move forward.

Yet, Edward DeMarco, the FHFA’s acting director, says that the FHFA has concluded after months of consideration that “the anticipated benefits do not outweigh the costs and risks” with mortgage principal reductions, and that the agency stands by its original decision to not permit it. DeMarco says that only about 74,000 to 248,000 home owners would be eligible for the principal reductions, but developing and implementing such a program would prove costly. Plus, about 11 million Americans are underwater on their mortgages so the program would only be able to help a small share.

DeMarco also said he was concerned reducing the mortgage principal on some home owners’ mortgages would prompt other borrowers to fall behind on their payments so that they could receive similar treatment.

Source: “Fannie, Freddie Regulator Says No to Reducing Principal,” CNNMoney (July 31, 2012) and “Agency Bars Fannie and Freddie From Reducing Principal,” The Associated Press (July 31, 2012)

via FHFA Says Fannie, Freddie Will Not Reduce Mortgage Balances | Realtor Magazine.

Political Deadlock Prompting
High End Sales Deadlines

Reynolds Realty Group News No Comments

arm twistingWealthy home owners are reportedly contacting their real estate agents with an urgent request: They must sell their home within the next five months, CNBC reports.

Why are they suddenly in such a rush to sell? Read the rest of this entry »