Midwest Memo: Cook County’s Foreclosure Crisis, and How a Debt Default Could Affect Michigan

Three stories making news across the Midwest today:

1. Cook County’s foreclosure crisis. Despite proclamations that the recession is over, officials in Cook County, Illinois are nonetheless concerned about the 70,000 outstanding foreclosure cases within their borders. They held an emergency summit Thursday to discuss possible responses, according to our partner station WBEZ. Community organizer Leon Finney says the group will consider “home-ownership counseling, tighter bank regulations and stronger courts.”

2. Debt concerns reach Michigan. The state of Michigan receives approximately $400 million per week in federal funds, receipts that make up 44 percent of its $45 billion budget. John Nixon, the state’s budget director, isn’t sure how Michigan will continue to make payments next week if the federal government defaults, according to the Associated Press. Gov. Rick Snyder is concerned. “We’re prepared for a number of scenarios,” he told the AP.

3. Japanese manufacturing rises. Japanese manufacturing activity, which has strong ties to the Midwest economy in the U.S., saw activity increase at the fastest pace since the March nuclear disaster in July, according to Reuters. The Markit/JMMA index rose to a seasonally adjusted 52.1 in July, up from 50.7 in June. It’s the third straight month the manufacturing sector expanded, and an expert says if the trend is sustained, it will be “a vote of confidence in the economic outlook.” Earlier this year, Changing Gears examined the ripple effects of the Japanese economy throughout the Midwest.

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