Wednesday December 14 2016 Housing and Economic stories

TOP STORIES:

Dallas Police and Fire Pension Board ends run on the bank, stops $154M in withdrawals - (www.dallasnews.com) The Dallas Police and Fire Pension System's Board of Trustees suspended lump-sum withdrawals from the pension fund Thursday, staving off a possible restraining order and stopping $154 million in withdrawal requests. The system was set to pay out the weekly requests Friday. Pension officials said allowing the withdrawals would leave them without the liquid reserves required to sustain the $2.1 billion fund. "Our situation is currently critical, and we took action," board chairman Sam Friar said.

If Everything is so Bullish, Why Are Bank Insiders Dumping Their Shares at Record Pace? - (www.wolfstreet.com) The Big Bullish signal with a capital B – for those who believe in this kind of religion – was that the Dow Jones Transportation Average jumped to a new high on Wednesday for the first time since 2014, and that it rose again on Thursday to another record, even as the Dow also hit new records. The theory goes that transportation stocks predict the broader market in some manner. There were other bullish signals. Everyone is finding them suddenly everywhere. The hopes are flying high that whatever Trump is going to do – from instigating trade wars to letting Goldman Sachs run the Trump administration – it’s suddenly all good for stocks.

Monte Paschi Stock, Bonds Collapse After ECB Rejection - (www.zerohedge.com) Having soared ridiculously (25% off Tuesday lows) following its dip after the Italy referendum 'no' vote,ailing Italian lender Monte dei Paschi di Siena has seen its stocks and bonds eviscerated in today's trading as reality dawns that the fecal matter in Italy is about to strike the rotating object. ECB's rejection of Paschi's request for more time has sparked wholesale selling across the Italian banking system. BMPS shares are now down for the week -after being up over 15% following the Italy vote...

Police and fire pay lawsuits and pension crisis could spell financial disaster for Dallas - (www.dallasnews.com) Dallas is facing dual financial crises that could cost homeowners hundreds of dollars in additional property taxes a year if they aren't resolved in the city's favor.  The first is a failing pension system for police officers and firefighters that is massively underfunded. The second is a group of lawsuits over back pay for police and firefighters that, in the worst case scenario, could cost Dallas $4 billion. On Wednesday, the Dallas City Council attempted to grapple with both problems at once.  Their solution: Ask the state Legislature to come to rescue. 

Rising Interest Rates Trigger Losses on Banks' Massive Bond Holdings - (www.wsj.com) These losses are unrealized, however, and over time they will be offset by higher net interest income. Rising interest rates have sent bank stocks soaring. But there is a dark side to this kind of market move—banks in the fourth quarter are likely to report losses on their massive bond portfolios. U.S. banks suffered a $6.5 billion unrealized loss on the value of securities they hold as investments as of Nov. 23, according to the most recent data from the Federal Reserve. This was the first time since 2014 that the Fed data for the banking system as a whole showed a loss on these securities. As recently as early July, banks had total unrealized gains on these portfolios of $33.8 billion.

OTHER STORIES:

China Factory Gate Prices Rise 1.5% on Year, Less Than Expected - (www.bloomberg.com)
Euro Drops; ECB Says Smaller Monthly Asset Buys Not Tapering - (www.bloomberg.com)
Major stock indexes rise again to new records - (www.reuters.com)

U.S. household net worth rose to $90.2 trillion in the third-quarter: Fed - (www.reuters.com)
Market indicator hits extreme levels last seen before plunges in 1929, 2000 and 2008 - (www.cnbc.com)