Thursday November 8 Housing and Economic stories

California faces potential $11 billion deficit in budget next year
http://links.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2007/11/07/BAM5T7DPN.DTL&type=politics
Schwarzenegger won re-election in 2006 in part because of the perception that he had restored order to the state's chronic spending problems. But the deepening slump in the real estate market, combined with risky assumptions from this year's $145 billion spending plan, have resulted in a return of the big imbalance between what the state takes in and what it spends.

Best sources of housing and financial news stories (with no spin):
· http://patrick.net/housing/crash.html (Patrick.net US Housing Crash Continues)
· http://www.bullnotbull.com/bull/
· http://www.prudentbear.com/
· http://www.safehaven.com/
· http://www.jasmts.com/readingRoom.php (Jim Shepherd Investment Strategist)
· http://globaleconomicanalysis.blogspot.com/ (Mish’s Global Economic Trend Analysis)


Housing and Economic News:
· Fannie, Freddie Hammered As N.Y. Expands Probe New York's expanding probe of the home mortgage industry hammered the stocks of Fannie Mae and Freddie Mac. - (www.cnbc.com)
o Cramer: What's Cuomo Doing? - (www.cnbc.com)
o Washington Mutual Slammed - (www.cnbc.com)
· Asian Markets Tumble, South Korea Sheds 3% - (www.cnbc.com)
· Morgan Stanley Sees $2.5 Billion Earnings Hit - (www.cnbc.com)
· AIG Earnings Miss Estimates; Shares Drop - (www.cnbc.com)
· Merrill Reveals $6.3 Billion More in CDO Exposure - (www.cnbc.com)
· Cisco Profit Rises 37%, But Shares Fall - (www.cnbc.com)
· Moody's May Downgrade $33 Billion of Bank Debt - (www.cnbc.com)

Stocks tumble as fears on oil and inflation mount - (www.ft.com)
US stocks tumbled as the dollar hit record lows and mounting mortgage losses raised fears that credit turmoil could damage economic growth.
The Short view: Crisis widens
Lex: Oil, gold, China
Editorial Comment: Still squeezed
The Short View: Dollar at record low


Getty
Nicolas Sarkozy, French president, said France remained committed to defeating the Taliban in Afghanistan in an address to a joint meeting of Congress

M Stanley loses $3.7bn on single subprime bet - (www.ft.com)
Turmoil to last for ‘several quarters’
OCBC snubs Morgan Stanley over ratings - (www.ft.com)
Sarkozy calls for strong dollar policy - (www.ft.com)
French president attacks Wall Street ‘excesses’
The Short view: Crisis widens

* Nystrom: Things Become More Serious * - (www.bullnotbull.com/bull)
Keith Olbermann: Bush Administration Has Devolved into a Criminal Conspiracy - (www.bullnotbull.com/bull)Kucinich Impeachement Bill Moves Forward With Republican Help - (www.bullnotbull.com/bull)
Peter Schiff Endorses Ron Paul to 60,000 Email Subscribers - (www.bullnotbull.com/bull)
Slammed: GM $39 Billion Loss, Gold $850, Oil Near $100, Dollar New Low - (www.bullnotbull.com/bull)
GM's CEO on $39B Loss: "It doesn't have any impact at all," he said. "I would encourage people not to overreact..." - (www.bullnotbull.com/bull)
Resistance to Further Cuts Within the Fed - (www.bullnotbull.com/bull)
Central Banks See More Pain Ahead - (www.bullnotbull.com/bull)
US Productivity Rises More than Expected - (www.bullnotbull.com/bull)
What's Going on With the Markets?? - Elliott Wave's Free Week Starts Today - (www.bullnotbull.com/bull)


From http://www.prudentbear.com
Worker Productivity in U.S. Increased More Than Estimated in Third Quarter - Bloomberg (11/07/2007 07:58 AM)
Within the Fed, Resistance to Further Rate Cuts - NY Times (11/07/2007 05:31 AM)
Tales of woe play out at record foreclosure auctions - AJC.com (11/07/2007 08:38 AM)
Local home prices slide - Seattle Times (11/07/2007 05:38 AM)

China Reserves to Favor Strong Currencies, Cheng Says - Bloomberg (11/07/2007 05:10 AM)
Threat of forced sales grows for CDOs - FT (11/07/2007 05:33 AM)
Banks Face $100 Billion of Writedowns on Level 3 Rule - Bloomberg (11/07/2007 03:09 PM)
Next Fear: Corporate Debt - WSJ ($) (11/07/2007 05:18 AM)
Chinese, Indian Demand to Spur Oil Supply `Crunch,' IEA Says - Bloomberg (11/07/2007 05:24 AM)
High-Priced Oil Adds Volatility to Power Scramble - Bloomberg (11/07/2007 05:28 AM)
Failed buy-outs double to exceed $200bn as credit squeeze bites - FT (11/07/2007 08:36 AM)
Silver hits its highest mark since 1981 - LA Times (11/07/2007 04:53 AM)
At $3.05, heating oil price sets a Mass. record - Boston Globe (11/07/2007 05:05 AM)

GM Reports $39 Billion Loss on Deferred Tax Charge - Bloomberg (11/07/2007 05:55 AM)
Cuomo Subpoenas Fannie Mae, Freddie Mac, on Washington Mutual - Bloomberg (11/07/2007 11:53 AM)
Morgan Stanley's Subprime Assets Fell by $3.7 Billion - Bloomberg (11/07/2007 07:05 PM)
Citigroup Credit Swaps Near Highest in Five Years - Bloomberg (11/07/2007 05:08 AM)
Commodities sink Sara Lee 1Q profits - Houston Chronicle (11/07/2007 08:24 AM)
Fannie Mae, Freddie Mac eyed in NY mortgage probe - Reuters (11/07/2007 08:36 AM)
Fears rise over spectre of ‘earnings recession’ - FT (11/07/2007 10:07 PM)
GM Probably Will Report Biggest-Ever Loss on $39 Billion Charge - Bloomberg (11/07/2007 05:08 AM)
Storm May Hit Morgan Stanley After Its Calm - WSJ ($) (11/07/2007 05:23 AM)
Bottomless Banking - Forbes (11/07/2007 05:51 AM)
Citigroup and Prince: Too-Risky Business: Pearlstein - Washington Post (11/07/2007 05:54 AM)
Beazer Homes going leaner with reorganization - AJC.com (11/07/2007 08:37 AM)
Bank write-offs forecast to top $60bn - FT (11/07/2007 10:07 PM)
$39-billion earnings charge by GM stuns Wall Street - LA Times (11/07/2007 04:54 AM)
Mortgage troubles filtering down - Chicago Tribune (11/07/2007 04:58 AM)
ll eyes on Target - Minn ST (11/07/2007 05:10 AM)
Citigroup's Subprime Explanation Defies Belief: Jonathan Weil - Bloomberg (11/07/2007 05:26 AM)
Bonuses Likely to Shrink for Many on Wall Street - NY Times (11/07/2007 05:29 AM)
Consumer lenders suffer big falls - FT (11/07/2007 10:15 PM)


From http://patrick.net/housing/crash.html
"The End is Nigh!" Cries Paul Volcker (patrick.net)
Within the Fed, Resistance to Further Rate Cuts (nytimes.com)
Bankruptcy Law Change Proposed (efinancedirectory.com)
Election Day, Housing, and Fabricators (opednews.com)
Seattle prices fall as inventory swells (seattletimes.nwsource.com)
The Game (online.wsj.com)
Deutsche Bank Owns Cleveland. Who Knew? (seekingalpha.com)
Washington Mutual warns of credit losses (marketwatch.com)
IndyMac reports huge loss (latimes.com)
Banks Face $100 Billion of Writedowns on Level 3 Rule (bloomberg.com)
Writedown Wrapup (researchrecap.com)
More Bank, Brokerage Writedowns, Ratings Cuts Inevitable (researchrecap.com)
Emerging Market Trends: What's Next? (seekingalpha.com)
Cuomo Widens Investigation to Fannie Mae, Freddie Mac (bloomberg.com)
Freddie Ex-CEO to Pay $16.4 Million (washingtonpost.com)
Fannie Mae, Freddie Mac debt-protection costs jump (reuters.com)
Price Research (patrick.net)
Who Created America's Housing Crisis? (moneyandmarkets.com)
Subprime Shockwave (youtube.com)
Real Estate Is Officially Dead (patrick.net)