How Carnival can clean up PR mess






STORY HIGHLIGHTS


  • David Bartlett: For Carnival, impact of 'cruise from hell' potentially devastating.

  • Passenger video, media puts Carnival increasingly on the defensive, he says

  • He says it must show real concern, lay out plan, go a long way to make amends

  • Don't try to justify or explain, he says, but get proactive now about fixing problem




Editor's note: David Bartlett is a senior vice president of Levick, a crisis and issues management and strategic communications firm based in Washington. He is the author of "Making Your Point" (St. Martin's Press), a guide to communication strategy and tactics.


(CNN) -- As three tugboats towed the disabled Carnival cruise ship Triumph back to port in Mobile, Alabama, things went from bad to worse.


The fire that caused the ship to lose power and drift aimlessly on rough Gulf of Mexico swells was just the beginning. Raw sewage seeped into corridors and cabin ways. Food had to be rationed. There were fears of looting. Not surprisingly, passengers were furious and emotional. Some were reported to be "acting like savages."


For Carnival and the rest of the cruise line industry, the implications are potentially devastating. The deadly capsizing in January 2012 of the Costa Concordia ship off the coast of Italy still lingers in the public's mind. About a month later, the Costa Allegra liner suffered a similar engine fire, lost power, and was set adrift in pirate-infested waters in the Indian Ocean. Carnival owns Costa Cruises, and now a third high-profile crisis for Carnival in just over a year threatens to cement the perception among vacationers that cruising might not be worth the risk.


Five things we've learned about cruises



David Bartlett

David Bartlett




In the age of social and digital media, the problems faced by cruise lines are compounded. Using mobile phones, passengers aboard the Triumph have been providing concerned family members with constant updates. Those enraged family members have immediately passed the horror stories along to the eager media. The public is getting the full play-by-play in virtual real time, leaving Carnival playing catchup from an increasingly defensive posture.


But as bad as the potential damage to Carnival's image may be, the company, as well as the rest of the cruise line industry, has an opportunity to blunt the impact, if it acts quickly and wisely.


It seems counterintuitive, but while the gruesome stories of the "cruise from hell" are still fresh, the crisis offers an opportunity for the cruise line to make a compelling statement about the industry's commitment to its passengers. (Statements from Carnival.)


Crisis management experts know that customers and the general public are more likely to judge an organization by how it handles a problem than how it got into the problem in the first place. That means Carnival has to go much further than mere reimbursements and vouchers for onward travel.


The challenge to Carnival's reputation is three-fold.


First the company must articulate real concern for passengers and clearly communicate what it is doing to make things right for customers. This will require financial sacrifices, of course. But Carnival has little choice but to pay now and win some badly needed goodwill -- or pay later in the courtroom, in the court of public opinion, and, of course, at the cash register when bookings decline.


Second, the company must clearly communicate what it is doing to fix the problem and prevent anything like it from ever happening again. How did an engine fire, serious as that might be, so quickly develop into a disaster of this magnitude?


My celebration trip on the Carnival Triumph: From joy to misery


How could it have been allowed to happen? Why was the widely reported chaos and disorder allowed to develop? Why did Carnival not have emergency response plans in place? What is the industry doing to prepare for what would seem to be a manageable situation? The public will demand answers to these basic questions before it will begin to trust again. Uncertainty breathes life into a crisis. Accurate and timely information smothers it.




Third, Carnival must aggressively and clearly deliver these messages now, and for as long as it takes to restore the public's trust.


So far, the story has been about the unthinkable conditions the passengers have been forced to endure. Carnival must move aggressively to reshape that narrative to reflect all that it is doing to rectify the situation.


After a bad cruise, can you cruise into court?


Carnival has to resist the temptation to explain, minimize, or justify what happened and position itself instead as part of the solution to the problems that caused the disaster. That is what the public will focus on and remember, but only if Carnival is able to communicate it fast and effectively.


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The opinions in this commentary are solely those of David Bartlett.






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Charlie Sheen pays for injured teen’s therapy dog






MILWAUKEE (AP) — MILWAUKEE (AP) — There’s a 15-year-old Florida girl who didn’t really know much about Charlie Sheen before this week — but does now.


The actor wired $ 10,000 to Teagan Marti and her family on Thursday for a therapy dog to help in her rehabilitation from injuries sustained when she plummeted 100 feet from a Wisconsin amusement park ride in 2010.






“I think he’s a very kind person for helping me and my family and very generous,” Teagan Marti said by phone Thursday from her home in Parkland, Fla.


Teagan Marti suffered brain, spine, pelvis and internal injuries in July 2010 when nets and air bags that were supposed to catch riders on a free-fall ride were not raised. She had convinced her family to make the trip from Florida to Extreme World in Wisconsin Dells after seeing the amusement park’s Terminal Velocity ride on the Travel Channel.


She was hospitalized in Wisconsin and Florida for three months. She initially had no use of her arms or legs but through physical therapy is able to walk again with a walker.


Teagan Marti’s mother, Julie Marti, said they are financially in trouble from the medical bills and her recent divorce. Their house is being foreclosed upon and insurance isn’t covering physical therapy anymore, she said. She had no idea how they would pay for the English Golden Retriever puppy.


“I’m in such disbelief,” Julie Marti said. “I was crying. … What a guy. What a guy.”


The dog is being trained in Fond du Lac to turn on lights, pick up objects and be the teen’s constant companion.


Lucia Wilgus, of Eau Claire, became friends with the Martis after hearing of the accident and has spearheaded fundraising and helped find the dog and arrange training.


She sent a letter this week to Sheen through Sheen’s godfather, who is a Wilgus family friend and Benedictine brother in the Benet Lake, Wis. She estimated the training and related costs would be around $ 6,000.


Sheen said he decided to give more for extra costs. The request had a “personal vibe” since it came through his godfather, and “if there’s a need for more I told them to call me,” he said.


“I like to pay it forward,” Sheen said Thursday in a phone interview from Los Angeles. “People come into your orbit for a reason. You don’t always know what that is ahead of time, but if I ignore these requests then I don’t have any opportunity to see where these things lead us, or lead me.”


He said he doesn’t like to publicize most of his donations, but wanted to talk about this one to inspire others to donate.


Teagan Marti gets the dog on her birthday in September but hasn’t made up her mind on a name.


“I think they should name the dog Charlie,” Sheen joked.


___


Follow Carrie Antlfinger at http://twitter.com/@antltoe


Entertainment News Headlines – Yahoo! News





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When Sharing Taxes Might Not Be a Good Idea






As a married couple, you probably share almost everything. But is that such a good idea when it comes to filing taxes?


Most couples file their return jointly, combining incomes and sharing deductions. That trend will probably continue, encouraged in large part by tax-law changes during the last few years to ease the marriage penalty. This filing phenomenon tended to show up when working spouses made roughly equal incomes; in many cases, they paid more taxes on their combined return than did unmarried couples filing separate returns as single taxpayers, forcing the married pair to face a tax penalty. Tweaks to the tax brackets have helped ease this problem.






But sometimes it pays for couples to re-examine how they file. There definitely are instances when filing separately might be warranted.


Togetherness or not?


Separate returns could produce tax savings if one spouse has a lot of medical expenses and a low income. By filing separately, the partner with the doctor bills might be more likely to meet the 7.5 percent threshold needed on 2012 returns to itemize medical costs. Medical deductions will be even more difficult to claim on 2013 and subsequent tax years because health care reform has increased the threshold to 10 percent.


If one spouse uses questionable tax-filing techniques, the other partner might be wise to insist on separate returns. When both partners sign a joint return, each is legally liable for the tax bill and any issues that might come up later. The Internal Revenue Service does offer innocent spouse protection, but the victimized partner must show he or she was indeed unaware of any tax scheme. Filing separately could afford more protection for you if the IRS comes around asking about a creative return.


And when a marriage is on the rocks, many couples decide to start splitting taxes even before the divorce decree is entered. This way they can avoid being tied together by tax issues after the marriage is over.


Not always a perfect union


But married filing separately could have some drawbacks.


Although the tax-rate disparities between single filers and married couples have been lessened in the two lowest tax brackets, spouses who file separately will find the tax rates for them aren’t as amenable in the upper ranges. In fact, a check of the tax brackets shows married-filing-separately taxpayers face the 28 percent, 33 percent and 35 percent brackets sooner than do other unmarried taxpayers.


For example, a single filer who earned $ 75,000 in 2012 would pay a maximum tax rate of 25 percent. But a married taxpayer who earned that same amount and filed a separate return would see a portion of his income fall into the 28 percent bracket. And while a single filer can make up to $ 178,650 and stay in the 28 percent range, a married taxpayer filing separately jumps to the 33 percent bracket when he makes more than $ 108,725.


Deduction flexibility also is sacrificed. If one spouse itemizes, both must itemize, splitting the items to be listed on a separate Schedule A for each. That means a partner with few deductions couldn’t use the standard amount and might get cheated when it comes to reducing taxable income.


Deduction, credit considerations


Many tax-cutting credits and deductions are forfeited. You can’t take the earned-income credit, claim adoption expenses or child and dependent-care costs, use educational tax credits or even deduct the interest you paid on a student loan if you’re married and filing separately. If you have children, you might find the child-tax credit reduced because it phases out at different income limits for the various filing statuses. And the amount of capital gains losses you can deduct is cut in half.


The married filing separately rules are complicated further if you live in a community property state — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin. In these places, state law determines whether your income can be considered as separate or community for tax purposes. See IRS Publication 555, Community Property, for more information.


You should go ahead and figure your taxes as both joint and separate filers and use the method that produces the lower tax bill. But chances are, you’ll find joint filing will be your best choice.


And after all, aren’t taxes a tiny price to pay for love?


More From Bankrate.com


Yahoo! Finance – Personal Finance | Taxes





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Wall Street flat as takeovers offset weak overseas data

NEW YORK (Reuters) - Stocks were little changed on Thursday as a flurry of merger deals and better-than-expected jobs data offset signs of economic weakness in Europe and Japan


Shares of H.J. Heinz Co jumped 20 percent to $72.51 after it said Warren Buffett's Berkshire Hathaway and 3G Capital will buy the food company for $72.50 a share, or $28 billion including debt.


Also supporting the market was data showing the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week.


Stocks fell earlier after a report the euro zone's gross domestic product contracted by the steepest amount since the first quarter of 2009. In addition, Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.


"The only reason a company buys another company is because they see an upside. Even though we are at multiyear highs, this kind of activity shows that there is more room for a rally, feeding optimism to the market," said Randy Frederick, director of trading and derivatives at Charles Schwab.


But Frederick added the market would have to see small corrections before breaking above current levels, where indexes have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year, near its highest level since November 2007.


The Dow Jones industrial average <.dji> was down 13.75 points, or 0.10 percent, at 13,969.16. The Standard & Poor's 500 Index <.spx> was down 0.45 point, or 0.03 percent, at 1,519.88. The Nasdaq Composite Index <.ixic> was down 1.35 points, or 0.04 percent, at 3,195.53.


Constellation Brands soared more than 35 percent to $43.20 after terms of its takeover of Mexican brewer Grupo Modelo were revised, granting it perpetual rights to distribute Corona and other Modelo brands in the United States. AB InBev ADRs gained 5.5 percent to $93.08.


American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares fell 6.8 percent to $13.67.


Weakness in Europe contributed to a 5 percent drop in revenue from the region for Cisco Systems , which nonetheless beat estimates as it reported its results late Wednesday. The company's shares slid 1.4 percent to $20.85.


General Motors Co reported a weaker-than-expected fourth-quarter profit, also citing bigger losses in Europe alongside lower prices in its core North American market. The stock was off 1.7 percent at $28.19.


(Reporting By Angela Moon; Editing by Nick Zieminski and Kenneth Barry)



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Pistorius' girlfriend was a model, law graduate


JOHANNESBURG (AP) — The leggy blonde model tweeted that Valentine's Day should be "a day of love for everyone."


Instead Reeva Steenkamp was shot dead in the home of her boyfriend, paralympian superstar Oscar Pistorius, who was charged with her murder.


Steenkamp, South African model with a law degree, campaigned against rape and violence against women. Thursday morning, Reeva Steenkamp was to give an inspirational talk at a Johannesburg school. The next day she was going to wear black to protest the brutal rape and mutilation of a 17-year-old.


But the glamorous South African celebrity was found dead in the early hours from four bullet wounds in the Pretoria home of Pistorius. The two had been dating for only a few months.


She was one of FHM magazine's 100 Sexiest Women in the World for the past two years, appeared in international and South African advertisements and was to make her debut next week as a celebrity contestant on the reality TV show "Tropika Island of Treasure" filmed in Jamaica. She was also the South African face of Avon cosmetics. Police said the model was 30.


The freckled blonde who appeared in scanty bikinis on magazine covers and sashayed down fashion ramps was "continuously breaking the model stereotype," said her publicist Sarit Tomlinson.


Steenkamp was "the sweetest, kindest, just angelic soul" and at the same time "a very inspiring individual, very passionate about speaking about women and empowerment."


Scores of tributes were posted online. Fellow model Mashadi Motsogi tweeted: "You will be missed my sister. I can't hold the tears back. Love you always. RIP."


Thursday morning, Steenkamp had been scheduled to give a motivational speech to school students in Johannesburg. "It was about empowerment and inspiration and what inspires you and how to follow your dreams," said Tomlinson, who had Steenkamp's notes for the speech.


Steenkamp was born in Cape Town then moved with her family as a child to Port Elizabeth. There she attended the Nelson Mandela Metropolitan University, graduating with a Bachelor of Law degree.


"She had a fantastic character and we all were very fond of her," said Hilda Fisher, secretary to the dean of law.


Six years ago, Steenkamp moved to Johannesburg, South Africa's commercial capital, after she won the contract to represent Avon.


On Twitter, Steenkamp tweeted messages urging women to stand up against rape as well as her excitement about Valentine's Day.


"What do you have up your sleeve for your love tomorrow?" she tweeted. "It should be a day of love for everyone."


Her last tweet was an enthusiastic acceptance of a friend's invite to celebrate the day with chocolate cupcakes topped with red hearts.


She also used her Twitter account to encourage her thousands of followers to fight sexual abuse.


"WEAR BLACK THIS FRIDAY IN SUPPORT AGAINST (hash)RAPE," she re-tweeted just hours before she was killed.


Steenkamp urged followers to stand up against violence against women, tweeting four days ago as South Africa was outraged by the particularly brutal rape and murder of a 17-year-old: "I woke up in a happy safe home this morning. Not everyone did. Speak out against the rape of individuals in SA (South Africa). RIP Anene Booysen (hash)rape (hash)crime (hash)sayNO."


Read More..

Where's Obama's foreign policy?








By Isobel Coleman, Special to CNN


February 13, 2013 -- Updated 1653 GMT (0053 HKT)









STORY HIGHLIGHTS


  • Isobel Coleman: Obama mainly addressed domestic issues: economy, immigration, energy

  • He spoke very little about and offered nothing much new on foreign policy, she says

  • Coleman: He talked about ending Afghanistan War, spoke briefly about Iran, Syria, China

  • Coleman: His reinvigorated free trade agenda seems to be the boldest move




Editor's note: Isobel Coleman is the author of "Paradise Beneath Her Feet" and a senior fellow for U.S. foreign policy at the Council on Foreign Relations in New York.


(CNN) -- President Obama's State of the Union address predictably focused on his domestic priorities.


Immigration reform, a laundry list of economic initiatives including infrastructure improvements (Fix it First), clean energy, some manufacturing innovation, a bit of educational reform and the rhetorical high point of his speech -- gun control.



Isobel Coleman

Isobel Coleman



As in years past, foreign policy made up only about 15% of the speech, but even within that usual limited attention, Tuesday night's address pointed to few new directions.



On Afghanistan -- America's longest war -- Obama expressed just a continued commitment to bringing the troops home, ending "our war" while theirs continues. On Iran, there was a single sentence reiterating the need for a diplomatic solution, which makes me think that a big diplomatic push is not likely. On North Korea, boilerplate promises to isolate the country further after its provocative nuclear test, and on Syria, a call to "keep the pressure" on the regime, which means more watching from the sidelines as the horror unfolds.


Notably, China was mentioned only twice -- once in the context of jobs, and another time with respect to clean energy. Nothing about managing what could very well be this administration's most vexing but critically important bilateral relationship.


Obama's call for a reinvigorated free trade agenda was his boldest foreign policy statement of the evening. He is right to note that free trade "supports millions of good-paying American jobs," but his pledge to pursue a "comprehensive Transatlantic Trade and Investment Partnership" -- a free trade agreement with Europe -- will run into significant opposition from organized labor, especially given ongoing weaknesses in the economy.






Without fast track negotiating authority, the prospects for such a deal are minimal. Fast track authority, which allows the president to negotiate trade deals that Congress can then only approve or disapprove but not amend, expired in 2007, and it would require quite a breakthrough for Congress to approve it again. Still, despite these challenges, an agreement is worth pursuing.


Aside from a free trade agreement with Europe, there was little else in this State of the Union that hinted at foreign policy ambition. But unpredictable events have a way of derailing America's best laid plans to stay above the fray of the world's messiest problems. Who could have predicted just a few months ago that Mali would get a mention in the State of the Union? Iraq -- not uttered once tonight -- could re-emerge as a formidable crisis; Iran, Pakistan and North Korea also have tremendous potential to erupt.


While this administration seems determined to focus inward on getting America's economic and fiscal house in order, I doubt events in the rest of the world will be so accommodating.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Isobel Coleman











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Irish composer Raymond Deane talks Achill, Alma and ABBA too






DUBLIN (Reuters) – Irish composer Raymond Deane chafes at what he sees as a lack of recognition in his homeland for classical composers in a country better known for traditional fiddling and rock supergroup U2 than for notes on staves.


Classical music means Mozart and Beethoven and when you say Irish classical music their eyes just widen,” Deane, who recently turned 60, told Reuters over lunch at a French-style bistro in Dublin.






“Classical music doesn’t do much for the tourist industry except frighten off the tourists.”


Deane, who also is an activist who has taken up the causes of East Timorese and Palestinian human rights and campaigns to get artists to boycott Israel, described the Irish composer’s plight in the 1990s as “the honor of non-existence”.


Though he can rattle off the names of more than a half dozen Irish men and women composers of international stature, he says little has changed.


The difference is this year, Deane’s often haunting, sometimes playful chamber pieces got an airing at a birthday celebration in a Dublin church, one of his orchestral works was played at the National Concert Hall and September will see a concert staging of a new opera, “The Alma Fetish”.


The last, a collaboration with librettist Gavin Kostick, is a musical treatment of a theme that probably – actually, undoubtedly – would have been banned in Roman Catholic Ireland not too many years ago.


It is based on the love affair between composer Gustav Mahler’s widow Alma, a femme fatale for many a European intellectual, and the Austrian painter Oskar Kokoschka. He became so enamored of her he ordered up a life-size doll shaped, in all respects, like Alma.


Although the performance will be a concert staging, Deane said the doll will be there in some form or other, possibly in projections.


“You couldn’t not have it, because it’s absolutely central,” he said, adding that he was in part attracted to the story of Alma’s and Kokoschka’s affair because of the Olympia doll character in Offenbach’s opera “The Tales of Hoffmann”. Alma also seduced Oskar to the main theme of one of Deane’s favorite operas, Wagner’s “Tristan und Isolde”.


“Alma seduced Oskar to the ‘liebestod’ but in my version she sings and plays it as a Viennese waltz,” he said.


In a sign of the pan-European roots of his inspiration, Deane has quoted and used themes from composers as diverse as Mahler, Mussorgsky and Stockhausen in a musical career that began at about age 10 when his family moved from scenic but rustic Achill Island, off Ireland’s west coast, to Dublin, and Deane began writing down improvisations at the piano.


“It’s ridiculous, everyone is immature at the age of 10 but I was a particularly immature 10-year-old, and to think I’ve stood by a decision I made then, there’s really something absurd about it.”


Here’s what else he had to say about getting a musical education via the BBC’s classical station Radio 3, what he did or didn’t learn from his professors and why he makes no secret about liking ABBA‘s “Dancing Queen”:


Q: You studied under some of the musical greats of the 20th century, including the eternal enfant terrible Karlheinz Stockhausen. What did that do for you?


A: “‘Study’ in quotation marks – anybody else who would have gone through my particular curriculum vitae, studying with (composer) Gerald Bennett in Switzerland, Stockhausen in Cologne…would have made some use of them, seen them as opportunities. To a large extent I wasted all the opportunities that were offered to me by these people, quite perversely.”


Q: So where did you learn your craft, or more simply, how did you become a composer?


A: “I went to the usual university, did a degree at Maynooth (National University of Ireland), a doctorate. But my main musical education really was BBC Radio 3. When we came to Dublin in my early teens I had this old transistor radio that was really my main connection to the outer world and it wasn’t linked up to anything so the reception from the BBC was diabolical. The static was amazing and sometimes it would disappear completely. I would tune in and hear ‘tssshh’ and through this I would hear the music and then ‘tssshhh’. Sometimes it would disappear and I would try to imagine what I was missing. I think a lot of the kind of perverse quality of some of those early pieces of mine stems from that – a distant relationship and a rather distorted relationship to something.”


Q: Plus you and your composer friend Gerald Barry, in the days a quarter of a century ago before you swore off the drink, used to have some late evenings in which he’d play Rod Stewart and you’d pick ABBA, particularly “Dancing Queen”.


A: “I was a big fan of ABBA, I still have a lot of time for ABBA, I have a lot of time for the Beatles, a lot of time for Neil Young…Bruce Springsteen. My CD and record collection has a lot of non-classical stuff in it. I probably draw the line at rap.”


(Editing by Paul Casciato)


Music News Headlines – Yahoo! News





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Want a Dog Like Banana Joe? There Are 7 For Sale in America






After two days of frenzied canine competition, a five year-old black-and-tan Affenpinscher named Banana Joe was crowned champion at the Westminster Dog Show on Tuesday night. But for those dog enthusiasts captivated by the dog’s Wookiee-ish countenance and shock of black hair—and hoping to snatch up one of their very own—we say: Good luck.


The breed’s official site, recognized by the American Kennel Club, lists only 12 active breeders in all of North America. “The reason they’re rare,” says Nancy Baybutt, the Affenpinscher Club’s Breeder Referral Chair, “is they have small litters—some of them as small as a single puppy—and the dogs are so small themselves that they have whelping problems. If they don’t thrive, there’s not a lot of them to save.” She also credits history for their rarity. “It was a German dog [that] was decimated during World War II,” she says. “Afterwards people didn’t want a German breed. It just never had the popularity.” The gene pool for Affens is so small that one of Baybutt’s dogs is a relative of Banana Joe.






Right now, seven puppy Affenpinschers are available for sale in the United States, according to Baybutt. Two, both males, are located in Tallahassee, Fla., and five can be found in Cornville, Ariz. Of the latter litter, only one of the dogs will look like Banana Joe. “The rest are red,” says Baybutt, who notes that the breed comes in several colors. The dogs sell for around $ 2,500.


If that’s a little steep for you, larger Affenpinschers are bred “by the puppy mills,” says Baybutt, and can be purchased online. But these dogs aren’t recognized by the breed’s official standard. They go for about $ 400.


Businessweek.com — Top News





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Mortgage Mess Still Mires Housing Recovery






President Obama says he wants more Americans to be able to save money by refinancing their mortgages. The trouble is that mortgage rates are rising, now at their highest level since September of last year, before the Federal Reserve announced it would buy more agency mortgage-backed securities in order to drive rates down. Last week applications to refinance fell 6 percent from the previous week, according to the Mortgage Bankers Association.


“The banking industry has largely refinanced most prime customers in portfolio. For 2012, Q3/4 looks like the peak for industry mortgage banking revenue. The industry is expecting lower volumes in 2013,” says Christopher Whalen of Carrington Investment Services. “New loan originations will hopefully rise a bit this year to offset lower refinancing activity.”






But that has not been the case so far.


(Read More: Americans Tapping Into Home Equity Again)


Mortgage applications to purchase a home dropped more dramatically than did refinances, down 10 percent from the previous week. While one week does not a trend make, rising mortgage rates, coupled with severe inventory shortages, are not the mix needed for a healthy spring housing market.


(Read More: Beware the Escape Hatch in the New Mortgage Rules)


“Many homeowners may simply be deciding to play the market and wait for their home to appreciate before putting it up for sale. Despite the drop in applications, we have seen anecdotal evidence of homes selling very quickly after entering the market,” says Bob Walters, chief economist at Quicken.


Days on market are shrinking across the nation, but only because supplies are so low. It’s not just the former boom to bust to boom markets, like Phoenix and Las Vegas; local Realtor associations show inventories are down dramatically from a year ago in Charlotte (-29 percent), Dallas (-19 percent), Minneapolis (-32 percent), and Washington, DC (-36 percent) to name a few.


“The low and negative equity of a large number of mortgage holders has kept significant inventory off the market, and many would-be sellers with adequate equity feed into the problem by holding off until they find something to buy,” says Jonathan Miller of CEO of Miller Samuel Inc. “I believe the chronic low inventory phenomenon we are seeing has little to do with lack of consumer confidence and more to do with reasonable access to mortgage financing.”


President Obama echoed that sentiment in his State of the Union addressTuesday night.


“Overlapping regulations keep responsible young families from buying their first home,” Mr. Obama said. Not exactly a new sentiment, as the Chairman of the Federal Reserve, Ben Bernanke, has said the same thing several times, as have other federal regulators.


(Read More: Fewer Behind on Mortgages, but for How Long?)


Rising mortgage rates and tight credit standards keep first time-home buyers out, while falling inventories make it more difficult for existing home buyers to move up. The housing market is therefore still largely in the hands of all-cash investors, looking for distressed properties to buy and then rent out. Ironically, perhaps for now, more distressed properties coming to market will be what keeps home sales afloat.


-By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC


Questions? Comments? [email protected]


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Wall Street flat, S&P 500 touches November 2007 high

NEW YORK (Reuters) - Stocks were little changed on Wednesday after the S&P 500 index hit a November 2007 intraday high, but volume was low and investors stayed cautious with indexes near multi-year closing highs.


The benchmark index got a boost from Comcast Corp when the cable company said it will buy the rest of NBC Universal for $16.7 billion from General Electric Co .


Equities have been strong performers until recently, buoyed largely by healthy growth in corporate earnings, which helped the S&P 500 to rise 6.5 percent so far this year. The Dow industrials are about 1 percent away from an all-time intraday high, reached in October 2007.


Those gains could leave the market vulnerable to a pullback as investors take profits amid a dearth of new catalysts. While analysts see an upward bias in stocks, recent daily moves have been small and trading volumes light with indexes at multi-year highs.


"I was expecting a 12-15 percent return on the S&P for the whole year of 2013, and we have done about half of that in just 5-6 weeks," said Jack De Gan, principal at Harbor Advisory in Portsmouth, New Hampshire.


"We will hit resistance, but the fundamentals and micro picture are looking good, so if there is a correction it's going to be a brief one."


The Dow Jones industrial average <.dji> was down 52.99 points, or 0.38 percent, at 13,965.71. The Standard & Poor's 500 Index <.spx> was down 0.61 points, or 0.04 percent, at 1,518.82. The Nasdaq Composite Index <.ixic> was up 3.35 points, or 0.11 percent, at 3,189.85.


Economic data proved no catalyst giving investors direction. The government said retail sales rose 0.1 percent in January, as expected. Tax increases and higher gasoline prices restrained spending.


The S&P 500 was well over its 50-day moving average of 1,460.92, a sign the market could be overbought.


Comcast agreed late Tuesday to buy General Electric Co's remaining 49 percent stake in NBC Universal for $16.7 billion. Comcast jumped 6.2 percent to $41.40 as the S&P's top percentage gainer while Dow component GE was up 3 percent to $23.26.


Deere & Co reported earnings that beat expectations and raised its full-year profit outlook. After initially rallying in premarket trading, the stock fell 2.3 percent to $91.80.


According to the latest Thomson Reuters data, of the 353 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Industrial and construction shares were lower even though in his State of the Union address President Barack Obama called for $50 billion in spending to create jobs by rebuilding degraded roads and bridges.


The Dow Jones Home Construction index <.djushb> was off 0.2 percent.


(Reporting By Angela Moon; Editing by Kenneth Barry)



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