Saturday March 1 Housing and Economic stories

Top Stories:

U.S. Michigan Consumer Index Falls to 16-Year Low - (www.bloomberg.com)

Peloton Lays Blame on Wall Street Lending Crackdown - (www.bloomberg.com) – Hedge Fund blames government and Wall Street, instead of the fact it used too much leverage and had margin calls
Peloton investors set to take $2bn hit from fund firesale - (business.timesonline.co.uk)
Pile-up as Peloton runs out of road - (business.timesonline.co.uk)

Credit Markets Have Worst Two Months as Default Risk Surges - (www.bloomberg.com)
Hedge Funds' Fire Sales Send Muni-Bond Yields To Historic High Levels - (online.wsj.com)
Victoria's Secret CEO wants more modesty - (money.cnn.com) – The change in social mood is now occuring

(Thank God that) Republicans Block Consideration of Housing Relief Package in ... – (www.washingtonpost.com) – This package is very scary. Republicans blocked this package by vote of 48 to 46. Includes controversial re-write of bankruptcy laws allowing judges to change interest rates and reduce mortgage outstanding balance. Even though Bush/Cheney have been terrible, I am afraid for this country if Hillary or Obama are elected.

Does something seem odd about these 3 stories? Just our senseless politicians at work:
Fannie Mae Reports $3.56 Billion Loss - (www.washingtonpost.com)
Freddie Mac cautious after record $2.45bn loss - (business.timesonline.co.uk)
Regulator lifts limits on Fannie, Freddie portfolios - (www.sfgate.com) – What does FNM get for $3.56 B 4Q2007 loss, FRE for a $2.45 B loss? They are rewarded with lifted portfolio limits.

Subprime crisis takes bite out of toll authority - (www.insidebayarea.com) – Another city blaming the subprime crisis for their problems. Sounds a bit like 2003 when all businesses were blaming SARS for their earnings misses.
Builders battle Congress - (www.sfgate.com) – Good story on self-serving proposal that the Nat’l Association of Home Builders – Give a tax credit of $10,000 for every who buys a newly built house.
Rising wheat prices pinch businesses - (www.contracostatimes.com) - In January, Rocco's Ristorante & Pizzeria was paying about $14 for each 50-pound bag of flour his Walnut Creek restaurant uses to make pizza. This week, prices are up to about $28 a bag.
FDIC to add staff as bank failures loom - (www.blacklistednews.com)
Door Could Open To Class Actions - (www.washingtonpost.com)
'Solutions' the public hates - (www.nypost.com)
Specter of foreclosure hangs over bucolic wine country Even exclusive Napa Valley home market mirrors crisis elsewhere in state - (www.insidebayarea.com)
Don't count on getting return of home deposit Builders holding on to money - (www.insidebayarea.com) - clueless Pleasanton realtor doesn’t understand why she can’t get her $30K deposit on $950K house
bart's budget off rails - (www.sfchronicle.com) - Similar to state of CA, transit system expects double whammy of anemic growth in ridership and sales tax revenue
Quaker teacher fired for changing loyalty oath - (www.sfgate.com) - Quaker put “nonviolently” in document she signed.


Other Stories:

The Buck Has Stopped - (www.nytimes.com)
Junk sales mirror '91 recession and bankruptcies - (www.reuters.com)
In Parts of U.S., Foreclosures Top Sales - (www.nytimes.com)
Power of Greenback Faces Test - (online.wsj.com)
Borrowers Abandon Mortgages - (online.wsj.com)
California City Moves Closer to Bankruptcy Filing - (www.bloomberg.com)
U.S. Consumer Spending Rises as Accelerating Inflation Erodes Buying Power - (www.bloomberg.com)

Record housing drop hurts coasts worst - (articles.moneycentral.msn.com)
Short Sales Are "Fake Listings" - (blog.franklyrealty.com)
Democratic housing bill will be vetoed by the White House - (money.cnn.com)
Fed ready to cut interest rates again - (news.yahoo.com)
Dollar Trades Near Record Low Against Euro on Rate Differential - (www.bloomberg.com)Banks to unveil billions more in write-downs - (www.marketwatch.com)
As housing bubble bursts, students could benefit - (www.mndaily.com)
The father of two children hanged because of the mortgage - (translate.google.com)

Chicago Purchasing Index Sinks to Six-Year Low - (www.bloomberg.com)
Faced with mortgage default, some U.S. homeowners walk out - (www.iht.com)
Vacant Homes in U.S. Climb to Most Since 1970s With Ghost Towns - (www.bloomberg.com)

Billions of dollars of sales slam muni bonds - (www.reuters.com)
Muni hedge funds hit by margin calls, Pimco says - (www.marketwatch.com)
Rescue hopes falter for US bond insurers - (business.timesonline.co.uk)
State, preparing to borrow, faces cold market for munis - (www.latimes.com)
Lenders Seize Peloton Assets - (online.wsj.com)
Risks Seen for Growing Fannie, Freddie - (www.ap.com)
Credit crisis throws AIG into "uncharted waters" - (www.reuters.com)
Fannie Mae Alchemy - (online.wsj.com)
Look Under the Banks' Hoods - (online.wsj.com)
AIG Drops on Biggest Loss in Firm's 89-Year History - (www.bloomberg.com)
Victoria's Secret CEO wants more modesty - (money.cnn.com)
Strike at Parts Supplier Closes GM Plant - (www.chicagotribune.com)
Fannie, Freddie May Have Further to Fall - (online.wsj.com)
Yet Another Bad Month for the Case-Shiller HPI - (piggington.com)
Case-Shiller Price Data Shows Record Declines - (www.seekingalpha.com)
Housing Prices Are Still Headed Down - (seekingalpha.com)
Drop in house prices accelerating - (www.nctimes.com)
House-price fall accelerating - (money.cnn.com)
No end in sight: Housing in freefall - (www.iht.com)
San Francisco prices down 13% from peak - (eastbayhousingbubble.blogspot.com)
Europe growth outlook darkens - (money.ft.com)


Buffett Says The Party's Over - (www.forbes.com)
Soaring Food Prices Putting U.S. Emergency Aid in Peril - (money.washingtonpost.com)
True impact of mark-to-market accounting in the credit crisis - (money.ft.com)