For some reason adding new user with "useradd" create the homedir but with really messed permissions - 002. You read it correct only WRITE permissions for Others. Can someone point me what could have caused this?
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the droid you are looking for is in /etc/login.defs
the umask value should be 002 or 022 (Permissions 775 or 755 for directories).
Cheers.

C. La Mosca
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