| CBS’s Smith ‘Admired’ Kucinich ‘Since He was Mayor of ...
But it all came crashing quickly down when Mr. Kucinich presided over the city's plunge into default in 1978. The collapse attracted international ridicule and, except for a brief sojourn on the City Council in the early 80's, left the obstreperous boy wonder in political exile for 15 years...[he] was elected mayor in 1977 and governed the city with a tight circle of friends. But Cleveland's finances, already troubled, spiraled out of control. The climactic moment came in December 1978, when the city was unable to meet $14.5 million in bond obligations. Despite pressure from the business community, Mayor Kucinich refused to sell the municipal electric system to cover the debt. Cleveland went bust, as did his career. .
Why foreign funds are selling now
Crippled in their home country—the United States--foreign institutional investors (FIIs) continue to push the panic button in emerging markets. The result: global fund managers are selling in one of the most profitable markets – India-- to reduce losses caused by the sub-prime mortgage crisis, which is now spreading to bond insurance companies in the US. Salomon Smith Barney, Merrill Lynch, Morgan Stanley and UBS are among the foreign investors that have sold big time in India, sources said. “The sharp cut in the fed rate by 75 basis points may slow down the process, but the trend may revive sooner than later as we are not out of the woods," market observers said. In the immediate future, FIIs are expected to make net investments in India after as they did after the September Fed cut, but it is difficult to hold on, given the current global scenario, they add. FIIs have sold a net amount of Rs 20,225 crore worth of shares in January.
Stock slump the latest of Beazer's woes
Some warned in 2003 that builders were selling too many homes. Too many unqualified buyers were getting mortgages with ballooning interest rates. And housing prices were rising too fast, too high. But Beazer Homes USA, one of the largest and most aggressive builders in Charlotte, didn't see it that way. "The so-called housing `bubble' is, in fact, a myth," it said in its fiscal 2002 annual report. "While many continue to wait for this bubble to burst, we agree with most respected economists that there has never been a national housing bubble in the U.S." In 2005, Beazer cracked the Fortune 500 and ranked among the 10 biggest homebuilders in the nation. But the good times didn't last. Last year, foreclosures nationwide hit record levels, as many homeowners were unable to pay rising mortgages.
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