House leaders offer short-term debt increase

WILLIAMSBURG, Va. – House Republicans announced Friday that they will vote next week to authorize a temporary extension of the debt limit, pushing off a politically unpalatable fight in the hopes of extracting further spending cuts from Democrats in a new budget deal.

The new offer, announced at the conclusion of a three-day retreat, represents a modification of the Republican leadership’s previous demand that any debt limit increase, temporary or otherwise, must include equivalent spending reductions. The temporary increase this time comes with the stipulation that it will “give the Senate and House time to pass a budget,” something the GOP notes that the Democratic-led Senate has failed to do so for years.

A leadership aide argued that it is consistent with the so-called “Boehner Rule,” which requires spending cuts or reforms in return for a debt-limit extension. Also, if Congress fails to pass a budget in time, the terms of the House offer would then call for lawmakers to stop receiving pay, just as the nation would then again face the threat of a default. Republicans say that the budget would only include an extended debt-ceiling increase if Democrats agree to significant spending cuts.

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“The Democratic-controlled Senate has failed to pass a budget for four years.  That is a shameful run that needs to end, this year,” House Speaker John A. Boehner (R-Ohio) was to tell members of the GOP conference, according to prepared remarks. “We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem.  The principle is simple: no budget, no pay.”

The party leaders hinted at the strategy Thursday, borne out of the bruising fiscal cliff battle in December that divided the House majority. It would push off the most immediate of three coming fiscal battles, which also include automatic across-the-board spending cuts and the expiration of the resolution that funds the government’s operations.

President Obama has maintained that extending the nation’s debt limit was non-negotiable, warning that the failure to do so threatened the nation’s long-term credit rating. At a news conference earlier this week, Obama called it “absurd” that Republicans would refuse to “pay the bills they’ve already racked up.”

“It would be a self-inflicted wound on the economy.  It would slow down our growth, might tip us into recession, and ironically, would probably increase our deficit,” he said.

House leaders have used their time in Williamsburg, Va., to recalibrate their approach to negotiations. In a series of sessions on the grounds of a golfing resort, party leaders including Rep. Paul D. Ryan (R-Wis.), the chairman of the House Budget Committee and former vice presidential candidate, discussed the need to focus on reaching the achievable rather than the ideal when it comes to spending reduction goals, recognizing the party controls only the House, with a Democratic-led Senate and White House.

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House Majority Leader Eric Cantor (R-Va.) said in a statement that the GOP proposal “is the first step to get on the right track, reduce our deficit and get focused on creating better living conditions for our families and children.”

“It's time to come together and get to work,” he said.

Senate Majority Leader Harry Reid (D-Nev.) welcomed the move.

"It is reassuring to see Republicans beginning to back off their threat to hold our economy hostage,” the Nevada Democrat said in a statement. “If the House can pass a clean debt ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it.” 

The White House signaled that it was "encouraged" to hear the news from House leadership.

"We are encouraged that there are signs that Congressional Republicans may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on," its statement said.

[For the Record, 11:35 a.m. PST  Jan. 18: This post has been updated to include the White House's response.]

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With an air kiss or empty hug, Te’oing is Twitter craze

NEW YORK (Reuters) – Manti Te’o, the Notre Dame linebacker entangled in a girlfriend hoax that gives a whole new meaning to the term “air kiss,” is inspiring a new fad racing through social media: Te’oing.

An avalanche of pictures of people hugging empty chairs or puckering up to an otherwise empty room were posted to Twitter with the hashtag #Te’oing days after the college football star’s story about his girlfriend’s cancer death was exposed as a fraud. Not only did she never have leukemia, she never existed.

Notre Dame officials said Te’o told them he had been duped into believing he had an online relationship with the fictitious woman.

“Te’oing – Mile High Club edition” read one tweet with a photo of a man hugging the air in an airplane bathroom, an apparent reference to the whispered practice of having sex in mid-flight.

Clint Eastwood was hailed in several tweets as a “Te’oing” pioneer for the actor’s interlude with an empty chair at the 2012 Republican Convention. Other tweets showed Ronald McDonald Te’oing on his cozy bench and President Barack Obama spending quality time Te’oing with a vacant seat.

“Just some afternoon bubbly with my baby” said one Te’oing tweet with a photo of a man clinking his champagne flute against another that appeared to be suspended in mid-air.

The snarky social media frenzy recalled another similar trend called the “Tebowing,” named for New York Jets quarterback Tim Tebow, who frequently kneeled for on-field prayers and inspired copy-cat poses by people whose pictures flooded social media last year.

In its own riff on emptiness and romance, a Kentucky minor league baseball team, the Florence Freedom, has announced it will give away Manti Te’o Girlfriend Bobblehead dolls – actually empty boxes – to the first 1,000 fans at the May 23 game.

One section of the Florence, Kentucky, stadium has been reserved “for fans to sit with their imaginary friends, girlfriends/boyfriends or spouses” who may be caught on the “pretend kiss cam” and are invited to compete in an air guitar contest or an imaginary food fight.

(Writing by Barbara Goldberg; Editing by Paul Thomasch and Vicki Allen)

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Anita Hill reflects on Senate hearings in 'Anita'

PARK CITY, Utah (AP) — Anita Hill made national headlines in 1991 when she testified that then-Supreme Court nominee Clarence Thomas had sexually harassed her. At the time, "sexual harassment" wasn't part of popular vernacular. Hill was verbally attacked, and Thomas was confirmed.

Now, more than 20 years later, director Freida Mock explores Hill's landmark testimony and the resulting social and political changes in the documentary "Anita," premiering Saturday at the Sundance Film Festival.

Hill and Mock said Friday they made the film to educate and inform a new generation of Americans, to reflect the progress that's been made and to inspire continued conversation and efforts toward social and political equality.

Hill said the film doesn't just look back, it looks forward, which allows viewers to reshape their thoughts on sexual-harassment issues.

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Flu Season ‘Worse Than Average,’ Officials Say

This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.

But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.

Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.

Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.

The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.

Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.

Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.

Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.

So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.

Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.

Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.

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'Dear Abby' advice columnist Pauline Phillips dies at 94

Pauline Friedman Phillips, who as Abigail Van Buren -- "Dear Abby" — for more than 40 years dispensed advice to newspaper readers worldwide on everything from snoring spouses to living wills, has died. She was 94.

Phillips died Wednesday in Minneapolis after a long battle with Alzheimer's disease, according to a statement from Universal Uclick syndicate.

The youngest of four daughters of Russian immigrants, Pauline Esther Friedman and her identical twin, Esther Pauline, who became advice columnist Ann Landers, were born in Sioux City, Iowa, on July 4, 1918. Phillips once said that as children, “We thought all those firecrackers and skyrockets were just for us.”

Perhaps those pyrotechnics were a harbinger of things to come for the vivacious, popular Friedman twins — "Popo” and “Eppie” — who were destined to become two of the most famous and influential women of their generation.

For 71 years, she was married to Morton B. Phillips, scion of the National Pressure Cooker Co. (Presto). From an office in their Beverly Hills home, she continued to edit the column into her 80s, although in later years daughter Jeanne Phillips  took over much of the writing.

“I started out editing her,” Jeanne Phillips said in 1999, “and now she edits me.” She plans to “continue the good work my mother started as long as I'm able. It provides a service people absolutely need.”

The improbable saga of “Dear Abby” began in 1955 when Phillips was an affluent homemaker in Hillsborough, Calif., with time on her hands, doing volunteer work and playing mah-jongg. Her twin, who'd just been hired by the Chicago Sun-Times Syndicate to take over the Ann Landers column, began forwarding some of her letters to her for replies.

Always extremely close, the sisters were thrilled to be collaborating on an advice column.

Phillips soon started her own advice column for the San Francisco Chronicle.

Her twin sister died in 2002.

A full obituary will follow at latimes.com/obits.

-- Beverly Beyette

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Amazon holiday results to show sales tax impact

SAN FRANCISCO (Reuters) – Acting as a tax collector may have hurt Amazon.com, Inc’s holiday sales analysts and industry executives said, but they expect to know more when the internet retailer reports its fourth-quarter results on January 29.

Best Buy Co., an archrival of Amazon in consumer electronics, saw holiday online sales increase in three states where Amazon started collecting sales tax ahead of the period.

“There was a little softness in states where Amazon is now collecting sales tax,” said R.J. Hottovy, an equity analyst at Morningstar. “That isn’t surprising to me. It levels the playing field for brick-and-mortar retailers.”

Critics of Amazon argued it had an unfair advantage because most retailers have had to collect state sales tax on online sales for years because they have stores and other physical operations in these locations.

But many states, hungry for extra tax revenue in the wake of the 2008 financial crisis, introduced new laws requiring that Internet-only retailers also collect sales tax. Brick-and-mortar retailers hope the requirement will reduce Amazon’s price advantage and help them recoup lost sales.

CHANNELADVISOR DATA

Amazon, the world’s biggest Internet retailer, began collecting sales tax of 7.25 percent to 9.75 percent in California on Sept 15, about two weeks before the start of the fourth-quarter. Third-party sellers on Amazon.com saw a drop in sales during the quarter, compared to other states, according to an analysis by e-commerce firm ChannelAdvisor.

It also started collecting sales tax in Pennsylvania in September and in Texas in July.

Amazon’s fourth-quarter results should provide clues on whether consumers changed their shopping habits when faced with higher taxes on their purchases from the company’s website.

ChannelAdvisor, which helps merchants sell more online, analyzed its clients’ sales on Amazon.com in California, and compared them to other states before and after the sales tax kicked in.

Before Amazon began collecting the tax in California, ChannelAdvisor client sales were 5 percent to 10 percent above other states. The week before the September 15 start of the tax, sales spiked as high as 70 percent compared to other states.

“The surge before the tax went into effect was much larger than I thought it would be,” said Scot Wingo, chief executive of ChannelAdvisor. “Californians definitely bought a lot in the three or four days before the tax went into effect.”

After Amazon began collecting tax, its California sales leveled with other states. Then, in early November, they slipped as much as 10 percent below other states, ChannelAdvisor data showed.

During one of the busiest holiday periods, in late November and early December, sales dipped further in California vs other states. Toward the end of the holiday period, client sales in California recovered, the data showed.

“There was a sales impact of about 10 percent at the worst point of the dip,” Wingo said. EBay, another Amazon rival, is an investor in ChannelAdvisor. Wingo also owned Amazon shares, but sold them in the fourth quarter for personal tax-related reasons.

Amazon’s tax collection in California had the most impact on fourth-quarter sales of more expensive items priced at $ 200 to $ 250, Wingo said.

PRICES, PROFIT

Amazon probably lowered prices by 8 percent to 9 percent on items most affected by this, although it is tricky to separate such reductions from the usual holiday season promotions that were also happening, Wingo said.

The extra price competition may dent Amazon’s profitability in the fourth quarter, Morningstar’s Hottovy said.

Amazon is expected to make 52 cents a share in the fourth quarter, on revenue of $ 22.3 billion, according to Thomson Reuters I/B/E/S. In late October, the company forecast operating results ranging from a profit of $ 310 million to a loss of $ 490 million.

Hottovy expects $ 22.4 billion in revenue and an operating loss of $ 210 million, or a $ 135 million loss after excluding stock-based compensation and other operating expenses.

BEST BUY

In California, Texas and Pennsylvania, Best Buy said it saw a 4 percent to 6 percent increase in online sales during the holiday versus the rest of its chain.

The retailer also saw an increase of 6 percent to 9 percent in online orders that are picked up in its stores in those three states compared with the rest of its chain.

Overall, Best Buy reported better-than-expected holiday sales last week, sending its shares up more than 10 percent.

“This makes Amazon equal to everyone else. They no longer have that sales tax advantage,” said Anne Zybowski, vice president of retail insights at Kantar Retail. “If this had happened to Amazon when they were just a bookseller years ago, they may not be as big as they are now.

Despite the tax changes, Amazon’s consumer electronics prices were still at least 5 percent below Best Buy’s during the holiday season, Zybowski said. But Best Buy may have benefited from even a small change in this area.

“Particularly in consumer electronics, any narrowing of Amazon’s price advantage at the margin is important because Best Buy brings service and other shopper benefits to the category,” she said.

Best Buy will take away people’s old TVs when they buy a new one and the company’s Geek Squad service will install devices in shoppers’ homes, services Amazon does not provide, she noted.

An Amazon spokesman declined to comment when asked if the company saw an impact on fourth-quarter sales from the collection of sales taxes in the three states.

In the past, Amazon executives have said there was little or no impact from such changes in other regions.

Several analysts have argued that shoppers use Amazon for its vast product selection and convenient, fast shipping and returns, and not just its low prices.

“While not great for Amazon, it’s just one of many consumer benefits its service offers,” said Ken Sena, an analyst at Evercore Partners. “And while there may be early effects from this change, I still see usage trends remaining in Amazon’s favor.”

(Editing by Leslie Gevirtz)

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'Dear Abby' advice columnist dies at age 94

MINNEAPOLIS (AP) — Pauline Friedman Phillips, who as Dear Abby dispensed snappy, sometimes saucy advice on love, marriage and meddling mothers-in-law to millions of newspaper readers around the world and opened the way for the likes of Dr. Ruth, Dr. Phil and Oprah, has died. She was 94.

Phillips died Wednesday in Minneapolis after a long battle with Alzheimer's disease, said Gene Willis, a publicist for the Universal Uclick syndicate.

"My mother leaves very big high heels to fill with a legacy of compassion, commitment and positive social change," her daughter, Jeanne Phillips, who now writes the column, said in a statement.

Private funeral services were held Thursday, Willis said.

The long-running "Dear Abby" column first appeared in the San Francisco Chronicle in 1956. Mother and daughter started sharing the byline in 2000, and Jeanne Phillips took over in 2002, when the family announced Pauline Phillips had Alzheimer's disease.

Pauline Phillips wrote under the name Abigail Van Buren. Her column competed for decades with the advice of Ann Landers, written by her twin sister, Esther Friedman Lederer, who died in 2002. Their relationship was stormy in their early adult years, but they later regained the closeness they had growing up in Sioux City, Iowa.

The two columns differed in style. Ann Landers responded to questioners with homey, detailed advice. Abby's replies were often flippant one-liners.

Phillips admitted that her advice changed over the years. When she started writing the column, she was reluctant to advocate divorce:

"I always thought that marriage should be forever," she explained. "I found out through my readers that sometimes the best thing they can do is part. If a man or woman is a constant cheater, the situation can be intolerable. Especially if they have children. When kids see parents fighting, or even sniping at each other, I think it is terribly damaging."

She willingly expressed views that she realized would bring protests. In a 1998 interview she remarked: "Whenever I say a kind word about gays, I hear from people, and some of them are damn mad. People throw Leviticus, Deuteronomy and other parts of the Bible to me. It doesn't bother me. I've always been compassionate toward gay people."

If the letters sounded suicidal, she took a personal approach: "I'll call them. I say, 'This is Abby. How are you feeling? You sounded awfully low.' And they say, 'You're calling me?' After they start talking, you can suggest that they get professional help."

In a time before confessional talk shows and the nothing-is-too-private culture of the Internet, the sisters' columns offered a rare window into Americans' private lives and a forum for discussing marriage, sex and the swiftly changing social mores of the 1950s, '60s and '70s.

Asked about Viagra, Phillips replied: "It's wonderful. Men who can't perform feel less than manly, and Viagra takes them right off the spot."

About working mothers: "I think it's good to have a woman work if she wants to and doesn't leave her children unattended — if she has a reliable person to care for them. Kids still need someone to watch them until they are mature enough to make responsible decisions."

One trend Phillips adamantly opposed: children having sex as early as 12 years old.

"Kids grow up awfully fast these days," she said. "You should try to have a good relationship with your kids, no matter what they do."

Pauline Esther Friedman, known as Popo, was born on Independence Day 1918 in Sioux City, Iowa, 17 minutes after her identical twin, Esther Pauline (Eppie). Their father was a well-off owner of a movie theater chain. Their mother took care of the home. Both were immigrants from Russia who had fled their native land in 1905 because of the persecution of Jews.

"My parents came with nothing. They all came with nothing," Phillips said in a 1986 Associated Press interview. She recalled that her parents always remembered seeing the Statue of Liberty: "It's amazing the impact the lady of the harbor had on them. They always held her dear, all their lives."

The twins spent their growing-up years together. They dressed alike, both played the violin and both wrote gossip columns for their high school and college newspapers. They attended Morningside College in Sioux City.

Two days before their 21st birthday, they had a double wedding. Pauline married Morton Phillips, a businessman, Esther married Jules Lederer, a business executive and later founder of Budget Rent-a-Car. The twins' lives diverged as they followed their husbands to different cities.

The Phillipses lived in Minneapolis, Eau Claire, Wis., and San Francisco, and had a son and daughter, Edward Jay and Jeanne. Esther lived in Chicago, had a daughter, Margo, and in 1955 got a job writing an advice column. She adopted its existing name, Ann Landers.

Pauline, who had been working for philanthropies and the Democratic Party, followed her sister's lead, though she insisted it wasn't the reason for her decision. She arranged for an interview with an editor of the San Francisco Chronicle and presented sample columns, arguing that the paper's lovelorn column was boring. The editors admired her breezy style, and she was hired.

Searching for a name for the column, Pauline chose Abigail from the Bible and Van Buren from the eighth American president. Within a year she signed a 10-year contract with the McNaught Syndicate, which spread her column across the country.

"I was cocky," she admitted in 1998. "My contemporaries would come to me for advice. I got that from my mother: the ability to listen and to help other people with their problems. I also got Daddy's sense of humor."

Pauline applied for the advice column without notifying her sister, and that reportedly resulted in bad feelings. For a long time they did not speak to each other, but their differences were eventually patched up. In 2001, the twins, then 83, attended the 90th birthday party in Omaha, Neb., of their sister Helen Brodkey.

The advice business extended to the second generation of the Friedmans. Not only did Jeanne Phillips take over "Dear Abby," but Esther Lederer's daughter, Margo Howard, wrote an advice column for the online magazine Slate.

Aside from the Dear Abby column, which appeared in 1,000 newspapers as far off as Brazil and Thailand, Phillips conducted a radio version of "Dear Abby" from 1963 to 1975 and wrote best-selling books about her life and advice.

In her book "The Best of Abby," Phillips commented that her years writing the column "have been fulfilling, exciting and incredibly rewarding. ... My readers have told me that they've learned from me. But it's the other way around. I've learned from them. Has it been a lot of work? Not really. It's only work if you'd rather be doing something else."

___

Online: http://www.dearabby.com

___

Associated Press Writer Bob Thomas in Los Angeles contributed to this report.

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Well: Life, Interrupted: Brotherly Love

Life, Interrupted

Suleika Jaouad writes about her experiences as a young adult with cancer.

There are a lot of things about having cancer in your 20s that feel absurd. One of those instances was when I found myself calling my brother Adam on Skype while he was studying abroad in Argentina to tell him that I had just been diagnosed with leukemia and that — no pressure — he was my only hope for a cure.

Today, my brother and I share almost identical DNA, the result of a successful bone marrow transplant I had last April using his healthy stem cells. But Adam and I couldn’t be more different. Like a lot of siblings, we got along swimmingly at one moment and were in each other’s hair the next. My younger brother by two years, he said I was a bossy older sister. I, of course, thought I knew best for my little brother and wanted him to see the world how I did. My brother is quieter, more reflective. I’m a chronic social butterfly who is probably a bit too impulsive and self-serious. I dreamed of dancing in the New York City Ballet, and he imagined himself playing in the N.B.A. While the sounds of the rapper Mos Def blared from Adam’s room growing up, I practiced for concerto competitions. Friends joked that one of us had to be adopted. We even look different, some people say. But really, we’re just siblings like any other.

When I was diagnosed with cancer at age 22, I learned just how much cancer affects families when it affects individuals. My doctors informed me that I had a high-risk form of leukemia and that a bone marrow transplant was my only shot at a cure. ‘Did I have any siblings?’ the doctors asked immediately. That would be my best chance to find a bone marrow match. Suddenly, everyone in our family was leaning on the little brother. He was in his last semester of college, and while his friends were applying to jobs and partying the final weeks of the school year away, he was soon shuttling from upstate New York to New York City for appointments with the transplant doctors.

I’d heard of organ transplants before, but what was a bone marrow transplant? The extent of my knowledge about bone marrow came from French cuisine: the fancy dish occasionally served with a side of toasted baguette.

Jokes aside, I learned that cancer patients become quick studies in the human body and how cancer treatment works. The thought of going through a bone marrow transplant, which in my case called for a life-threatening dose of chemotherapy followed by a total replacement of my body’s bone marrow, was scary enough. But then I learned that finding a donor can be the scariest part of all.

It turns out that not all transplants are created equal. Without a match, the path to a cure becomes much less certain, in many cases even impossible. This is particularly true for minorities and people from mixed ethnic backgrounds, groups that are severely underrepresented in bone marrow registries. As a first generation American, the child of a Swiss mother and Tunisian father, I suddenly found myself in a scary place. My doctors worried that a global, harried search for a bone marrow match would delay critical treatment for my fast-moving leukemia.

That meant that my younger brother was my best hope — but my doctors were careful to measure hope with reality. Siblings are the best chance for a match, but a match only happens about 25 percent of the time.

To our relief, results showed that my brother was a perfect match: a 10-out-of-10 on the donor scale. It was only then that it struck me how lucky I had been. Doctors never said it this way, but without a match, my chances of living through the next year were low. I have met many people since who, after dozens of efforts to encourage potential bone marrow donors to sign up, still have not found a match. Adding your name to the bone marrow registry is quick, easy and painless — you can sign up at marrow.org — and it just takes a swab of a Q-tip to get your DNA. For cancer patients around the world, it could mean a cure.

The bone marrow transplant procedure itself can be dangerous, but it is swift, which makes it feel strangely anti-climactic. On “Day Zero,” my brother’s stem cells dripped into my veins from a hanging I.V. bag, and it was all over in minutes. Doctors tell me that the hardest part of the transplant is recovering from it. I’ve found that to be true, and I’ve also recognized that the same is true for Adam. As I slowly grow stronger, my little brother has assumed a caretaker role in my life. I carry his blood cells — the ones keeping me alive — and he is carrying the responsibility, and often fear and anxiety, of the loving onlooker. He tells me I’m still a bossy older sister. But our relationship is now changed forever. I have to look to him for support and guidance more than I ever have. He’ll always be my little brother, but he’s growing up fast.

---

Suleika Jaouad (pronounced su-LAKE-uh ja-WAD) is a 24-year-old writer who lives in New York City. Her column, “Life, Interrupted,” chronicling her experiences as a young adult with cancer, appears regularly on Well. Follow @suleikajaouad on Twitter.

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More homeowners rise above water as prices gain

One of the most pernicious effects of the housing bust was the huge number of borrowers stuck in homes worth far less than those properties could be sold for.

Negative equity has been a major drag on mobility and hence the American economy. Being stuck "underwater" means you can't sell your house or often even move out if you get a job someplace else.

Video: Experts discuss Southern California's housing market

Now that problem is easing, ever so slightly, with the recent rebound in home prices. About 100,000 borrowers popped into a positive equity position during the third quarter of 2012, mortgage tracker CoreLogic reported Thursday.

In California, an estimated 1.9 million mortgages were underwater, accounting for about 28.3% of residences with a home loan.

"Through the third quarter, the number of underwater borrowers declined significantly," CoreLogic chief economist Mark Fleming said in a news release. "The substantive gain in house prices made in 2012, partly due to tight inventory caused by negative equity's lock-out effect, has paradoxically alleviated some of the pain."

As many as 1.8 million borrowers could have equity in their home over the next year if prices continue to rise, the firm reported.

CoreLogic said that about 10.7 million homes -- or about 22% of all residential properties with a mortgage -- were in negative equity at the end of the third quarter. Negative-equity mortgages, and those that were in a near-negative-equity position, accounted for 26.8% of all homes with a mortgage.

Negative equity fell to $658 billion at the end of the third quarter, a decrease of $31 billion from the prior quarter. Nevada had the highest percentage of underwater homes at 56.9%. After the Silver State came Florida at 42.1% and then Arizona at 38.6%.

ALSO:

Supply of "shadow" homes declines again

Home sales jump to highest pace in three years

SoCal median home price gains 19.6% in December

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